The introduction of Financial Services Reform legislation has significantly changed the playing field for communicating with members.
If your fund doesn’t operate under an Australian Financial Services Licence your communication material, in any shape or form, can only be factual. In the absence of a licence, member communications cannot give personal advice (specific to an individual’s circumstances) or make statements that could be interpreted as general advice.
As well as impacting on what can be said in newsletters, annual reports and other print materials, it also impacts on information provided on web sites. For example, planning tools aimed at assisting members to work out how much super they may need or what may be an appropriate investment mix are regarded as personal advice. Telephone help line services and face-to-face seminars are also subject to the same restriction.
For unlicensed or partially licensed super funds, the mantra is most definitely “stick to the facts”.
Factual disclosure alone does not make for effective communication
The most visible change to date has been that member booklets have been replaced with Product Disclosure Statements (PDSs).
No one would argue that PDSs don’t provide a thorough factual source of reference for members about how their super fund works. However, what is more debatable is whether the resulting encyclopedias of factual “disclosure” are an effective way to communicate important messages to new members, or even whether these documents ever get opened. It’s a sobering thought that if PDSs or other materials don’t get opened, you have failed to communicate anything at all!
Despite the best efforts of communication professionals, many fund PDSs are large, somewhat daunting documents for members. Many have also been produced with low-cost production values due to the prospect of costly updates and reprints. These are not attributes that say “read me” to many members. Remember, to be an effective communicator you need to first engage the interest of your members.
A strategic approach is the key to engaging members
Now, more than ever, there is a need for strategic thinking and planning in getting important messages about the need for retirement saving across to members.
In the new environment, super funds need to be very clear in their messages to members and other stakeholders. A planned and strategic approach provides a level of comfort to those responsible that communication between members and the fund falls the right side of the legal line, while allowing for maximum member engagement and interest.
Think about the communication needs of your fund
Super fund members are not a homogeneous commodity. Every super fund has a different mix of ages, gender, ethnic backgrounds, education levels and so on. Likewise, every fund will have a different set of issues and communication needs. For example, within some funds understanding investment risks may be identified as a problem area. Spending a bit of time doing your homework will give you a feel for members’ needs. Also, review what communication you currently undertake and try to assess whether it’s meeting these needs.
Think what it is you want to say — and to whom
There will be key messages that you feel are important for members to understand. And don’t forget members are not your only audience, you are also communicating with members’ partners or other potential clients — think of the messages that are appropriate for them also.
Think about what communication methods work best for your members
Do your members like to get printed newsletters or would they prefer to get a brief email with links to a web site for more information? Putting information into a form that members prefer to receive greatly improves your chances of getting the message read and understood. As members will often have different delivery preferences, a strategic communication campaign will often involve a number of different delivery methods.
Think about implementation tactics
Informing is only one aspect of effective communication. You need to think about tactics that involve the membership, listens to their views and allow for their ongoing feedback. Think about the messages coming from spokespeople for the fund.
Draw up an implementation plan for the next 12 to 18 months
Get it down on paper. Mapping out what and how you intend to communicate to your members (and other audiences) will give your fund a blueprint for everyone to understand and follow. Communication is much simpler with everyone singing the same song.
