ART praises advisers, defends SMC’s ‘independent’ voice

Speaking to ifa’s sister brand InvestorDaily on Friday, Andrew Fisher, head of investment strategy at the Australian Retirement Trust (ART), addressed the recent drama involving the Super Members Council, of which ART is a member.

When asked to comment on the statement issued by the SMC last week quoting its chief executive, Misha Schubert, who said that the DBFO and changes to section 99FA of the SIS Act would help stop “dodgy financial advisers” from using cold calling businesses to solicit clients, Fisher diplomatically sidestepped direct confrontation. “I don’t want to directly respond to that”, he said, “but good advice is so important to member outcomes”.

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“We’re passionate as a fund [about advice], we’re such passionate advocates for it, and we partner with external advisers. We know we can’t do everything ourselves and so the external advisers are critical to the success of ART as a fund, but more importantly, the success of our members to deliver their retirement outcomes,” said Fisher.

“What we always think to reinforce and make clear is, financial advice is a critical part of the investment ecosystem. We have a lot of respect for the financial advice community, we really enjoy working with them, and they’re a critical part of the success of our members.”

While steering clear of the term “dodgy,” Fisher highlighted the need to balance support for an industry body’s independent voice with recognising differing opinions.

“There’s an interesting line to tread here because you want that body, whilst it might be representative of the industry, it also should have an independent voice and we shouldn’t be trying to hamper that voice. It’s a body, we support it, they have an opinion, and we may or may not agree with it at a point in time, but that’s the nature of collectivism. There’s the collective view and then there’s also the individual view,” said Fisher.

“I’m a strong advocate for financial advice, I think it has a really important role to play, and I think a better way of framing any conversation is, rather than focusing on what’s wrong, is to focus on what’s right. Focusing on a small bad example, I think it’s the wrong way to deal with a challenge like that, and I think financial advice is great, we should help support it be the best thing It can be, and we’re strongly committed to that because it makes a difference to our members.”

In a separate statement sent to ifa, ART’s executive general manager of advice, guidance and education Anne Fuchs also pledged her full support for advisers, without directly addressing the SMC matter.

“At Australian Retirement Trust we truly believe in the power of financial advice and the material impact it can have on our member’s retirement outcomes.

“The accessibility of affordable, quality advice is a top priority for ART, and we partner with the advice community to deliver this to our members, so they can retire well, with confidence.”

Fuchs continued, emphasising that advisers play a key role in helping ART’s members achieve their retirement goals, and adding that the fund sees them as “critical to the success of our organisation”.

“Qualified advisers are trusted professionals in the eyes of working Australians, who as they get older, will need advisers more than ever before.”

Fuchs also applauded the reforms “undertaken in recent years,” stating that, in ART’s view, they have “improved the financial advice industry”.

“ART deeply values the strong working relationship we have with our registered adviser partners and we look forward to continuing this partnership long into the future.”

Feelings mixed on SMC apology

Late on Friday afternoon, SMC issued another statement, this time clarifying that the CEO’s initial remarks were “not intended to be generalised to all financial advisers”.

In this statement, Schubert is quoted as saying that she “deeply values the role of high-quality qualified financial advisers”, particularly as it pertains to the role they play in providing 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,” Schubert said.

“The remarks were not intended to be generalised to all financial advisers.

“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.”

Moreover, Schubert called on “everyone to work together to secure the swift passage” of the “crucial reforms” currently being considered in Parliament.

While advisers didn’t quite buy Schubert’s attempt to remedy the situation, the chair of the Financial Advice Association Australia (FAAA) David Sharpe, who had initially called for an apology from Schubert, characterised the statement as genuine.

“Earlier this afternoon, SMC CEO Misha Schubert had the good grace to call and apologise for the comments made. The apology was genuine and I believe there was no intent to cause offence,” Sharpe said on Friday.

Sharpe added that the FAAA’s mission is to represent members and clients faithfully, working in good faith with stakeholders.

“No stakeholder has more incentive than financial advisers in upholding high standards. We pay both literally and figuratively for the work ASIC does (or doesn’t do) in response to misdeeds. A positive to come out of this is a commitment from the SMC and the FAAA to work together on future issues as they arise,” he said.

“To close out the last few days, a final message to the many thousands of great advisers in Australia – keep doing what you do every day – your work is recognised and valued.”