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Government may not support calls to regulate super advertising
The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, may not support calls to regulate advertising of superannuation investments, despite the Investment and Financial Services Association (IFSA) calling for legislation on the matter in its Super Charter yesterday.
IFSA called for new rules to limit advertising of super investments and projections and regulation to enable fair and transparent competition in its draft superannuation charter.
However, in an interview on Sky News last night, Bowen said that people should generally be free to advertise as they see fit.
"People will obviously always advertise in a way which they prefer to make their case. It's an important part of a market economy and it's up to individuals to make their judgements," he said.
Super fund industry bodies welcomed the announcement by IFSA that it would start removing commission payments from next year. The chair of the Industry Funds Network, Garry Weaven, welcomed the move and said that sales commissions created an inappropriate conflict of interest. He also called for regulation to ensure that there was a legal requirement for advisers to work in the best interest of their clients.
The chair of The Australian Institute of Superannuation Trustees, Fiona Reynolds, said that the decision was a step in the right direction and could deliver significant cost savings for many Australians. However, she also said that, because the charter would not be applied retrospectively, many clients would continue to pay trail commissions, and it did not appear to fully protect members of corporate master trusts for advice they may not receive.
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