APRA queried on industry funds/ISA advertising contract
The Australian Prudential Regulation Authority (APRA) has been directly questioned on whether it has checked the contracts between industry super funds and Industry Super Australia which underpin the “compare the pair” television advertising campaign.
In a question on notice an answer to which is already listed as “overdue”, NSW Liberal Senator, Andrew Bragg, specifically cited expenditures on the part of industry funds, Maritime Super and Cbus and whether they meet the Best Financial Interests Duty.
“Is APRA of the view that the expenditure spent to secure these advertising spreads was ‘’essential to the prudent operation’ of Industry Super, Maritime Super and Cbus,” Bragg asked.
He also asked whether APRA had “checked the contract in place with industry funds to get a breakdown of the individual arrangements ISA enters on their behalf?”
“How do these funds evaluate the effectiveness of the various campaigns and channels utilised? What is the test here for the BFID?” Senator Bragg asked.
Industry Super Australia describes itself as “managing collective programs on behalf of nine superannuation funds.
“ISA’s most well-known collective program is the Industry SuperFunds marketing campaign, which provides information about superannuation and the benefits of membership of funds that carry the symbol,” it said.
“ISA also performs public relations and government relations on behalf of participating funds and entities.”
The elephant in the room in the super industry is the money flowing from super funds, reducing retirement benefits of members and ending up in the hands of unions and Labor.
This really does highlight just how motivated and focused these funds are on gaining more FUM. We’re not ready yet for these Super funds to be trusted to provide Advice. Providing operational and factual information is enough for them, but the conflict of interest between providing actual Advice and shifting more product is going to be far too detrimental. They can’t possibly fulfill their obligations as trustee, especially when you also consider the amount of complaints against them in AFCA determinations.
The crucial question is how can FAAA or any professional FP group support Senator Bragg?
He’s one of the only ones trying to get this and many other industry fund corruption & falsification issues properly examined and yet there appears to be little support we’re providing him???