Advisers call for apology from Super Members Council

The Financial Advice Association Australia and members say the super lobby group should formally apologise for its recent remarks about "dodgy financial advisers."

Earlier this week, the Super Members Council (SMC) renewed calls for anti-hawking legislation to be extended to stop financial advisers using third parties to cold call consumers to elicit business or posting click-bait on social media.

In doing so, SMC referred to "dodgy financial advisers" and labelled them "rip-off merchants" and "shonks."

While the SMC was referring to a small subset of advisers employing such tactics, FAAA chair David Sharpe described the comments as "inflammatory" and "inaccurate."

"It may be this language was meant to apply only to the tiny minority of advisers who do the wrong thing - if so, it wasn't made clear. I'll extend the courtesy that this was clumsy rather than deliberate. Regardless, such inflammatory and inaccurate language does nothing to help consumers or anyone else," he said.

"Like all professions, there is a very small subset who don't do the right thing, and we are committed to ensuring they are held to account. FAAA members pay a very large amount to ASIC to monitor and hold to account not only financial advisers but also unlicensed operators.

"Our members also actively report misconduct that they encounter, to ASIC directly as well as through us, and become very frustrated if ASIC does not act on their reports."

He said the SMC's use of a "broad brush slur is offensive" and would be akin to him suggesting all super funds are involved in greenwashing.

Sharpe finished by saying he would like an apology from the lobby group.

"Let's be clear - the absolute vast majority of financial advice professionals work hard as the financial guardians to protect and grow the financial wellbeing of their clients," Sharpe said.

"I would welcome an apology from the SMC, and an acknowledgment of the many thousands of professional financial advisers in this country who are doing a great job ensuring the financial wellbeing of their clients every day."

While several financial advisers welcomed and agreed with Sharpe's response, others suggested such comments are nothing new and the days of worrying about what the super industry thinks of advisers has passed.

In response, SMC chief executive Misha Schubert said the lobby group "deeply values the role of high-quality qualified financial advisers to help Australians plan for retirement, informed by advice that is in the best interests of super fund members."

"Disappointingly, some comments I made in a media release earlier this week highlighting ASIC's recent concerns about a small subset of operators using cold-calling and online click bait tactics to pressure Australians into moving their super into underperforming products have been mischaracterised. The remarks were not intended to be generalised to all financial advisers," she said.

"I regret - and apologise for - any offence that the mischaracterisation of my remarks caused to reputable financial advisers who are working faithfully in the best interests of their clients."

She went on to say that "we urge everyone to work together to secure the swift passage of these reforms" that extend access to financial advice with strong consumer protections to more Australians and are currently before parliament.

Such reforms will ensure millions of Australians can plan confidently for their retirement informed by reputable financial advice, she said.