• Home
  • About Us
    • Who We Are/ Testimonials
    • Not Bank Owned!
    • Our Fees & Service
    • FSG/ Privacy Policy
  • What We Do
  • Advice Areas
    • Wealth Creation
    • Wealth Protection
    • Wealth Preservation
    • For Women
  • Ethical Investment
    • Our Ethical Portfolios
    • Impact
    • Charitable Giving
  • Podcast
  • Blog
  • Contact Us
    • Links
    • Complaint Handling Policy

Industry Super ‘Compare the Pair’ ads: Unethical?

Posted on:  11 Nov 2013    Posted in:  News, Superannuation

We get a lot of questions about the ‘Compare the Pair’ advertising blitz that Industry Super funds have run in the media (particularly on prime time TV) in recent years…”Are industry funds cheap?”, “Am I in an Industry Fund?”,  “How much will I save in fees?”. The question we ask: “Are these ads unethical?”.

It’s well known that many industry funds offer cheap, no frills super – and that suits some of our clients. However, the new MySuper rules, combined with industry competition, mean that these days all Australians have access to cheap super funds – industry fund or not.

In fact this campaign was very controversial. Subject to an enquiry by ASIC, resulting in an ‘enforceable undertaking’ being imposed, way back in 2005. The Industry Fund network was taken to task over the content – see:

www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/017029159.pdf/$file/017029159.pdf

As you can see, ASIC didn’t like the way that the ads assumed:

- The fees on either funds were to remain unchanged for 40 years

- The only relevant factor in the discussion is super fund fees (ie no taking to account advice or strategy)

- They imply that industry funds return all profits to members, but make no mention of the advertising spending undertaken ‘on behalf of members’

The questions remain – why is this advertising still allowed to continue, albeit with ‘small disclaimers’? Is it ethical?

p.s. From Little Things, Big Things Grow

Should this song be used to sell Industry Superannuation Funds?

A Paul Kelly song, one wonders what both he and the Gurindji people think of the ads. According to Wikipedia “It describes how the Gurindji people’s claim sparked the Indigenous land rights movement. The protest led to the Commonwealth Aboriginal Land Rights (Northern Territory) Act 1976. The Act gave Indigenous people freehold title to traditional lands in the Northern Territory and the power of veto over mining and development on those lands. In 1975, 3,236 km² of land was handed back to the Gurindji people”

Search our Site

Browse by Category

  • Ethical/ RI (62)
  • Events (20)
  • for Women (8)
  • News (129)
  • Podcast (12)
  • Retirement (16)
  • Risk Insurance (13)
  • Superannuation (37)
  • The Green Dream (11)

Recent News

  • Understanding the 'Retirement Smile' Understanding the 'Retirement Smile'
    28-11-2023
  • Rethinking Retirement: Superannuation Planning Before and After the age of 65 Rethinking Retirement: Superannuation Planning Before and After the age of 65
    23-11-2023
  • Charting the Course to Sustainable Property: Andrew Cole of Charter Hall Charting the Course to Sustainable Property: Andrew Cole of Charter Hall
    22-11-2023
  • GESB launches Sustainable Balanced Investment Plan: How does it stack up? GESB launches Sustainable Balanced Investment Plan: How does it stack up?
    13-10-2023
  • Silk heart valves, Slimming tablets, Sonic gains & Soy – Sustainable Investing with Nick Edgerton of Stewart Investors Silk heart valves, Slimming tablets, Sonic gains & Soy – Sustainable Investing with Nick Edgerton of Stewart Investors
    11-10-2023
JustInvest Financial Planning Pty Ltd is an Authorised Representative of Ethical Investment Advisers AFS Licence 276544
© 2020 JustInvest Financial Planning Pty Ltd. All Rights Reserved JustInvest acknowledges the Traditional Custodians of this Country we now call Australia. We acknowledge their ongoing connection to country and pay our respects to their elders past, present and emerging
TwitterStumbleUponRedditDiggdel.icio.usFacebookLinkedIn