Responding to claims by CSSA president Douglas Latto that industry funds are “reactive” when it comes to intra-fund advice, CommInsure head of industry funds Frank Crapis told ifa his experience has been the opposite.
“I’m seeing a lot more activity and engagement on the part of industry funds – I don’t see it as reactive,” said Mr Crapis.
Many funds are building an “outbound advice model” that might be structured through a ‘life event’ insurance arrangement, he added.
Under such an arrangement, the fund might call a member when they turn 40 and their insurance changes – or when their fixed insurance cover tapers off, he said.
The aim of the intra-fund advice conversation depends on the fund’s strategy, said Mr Crapis.
The phone call may be about retaining the member; increasing the awareness of the products within the fund; creating a better understanding of the insurance available to the members; or encouraging the member to consolidate some of their other superannuation accounts into the fund, he said.
“If you look at these funds five years ago they wouldn’t have that sort of engagement at all,” he said.
“If you look at the industry fund offices now they’re much better catered to be able to manage some of the calls coming through and the volumes coming through.”
Same ol same ol. two rules, two very UN level playing fields. And has anyone has picked up on the I F push to roll funds into their paddock without mention of lost insurance cover. Now, if we do that—gives goneski a new meaning. Hmmm, I wonder who the provider is for I F’s–maybe the butterer is –you guessed it.
Ok. So that means intra-fund advice includes rolling over external funds into the to funds? What about research on the ‘from’ fund? Is there some sort of specail deal for intra fund advice whereby there is no obligation to act in the member’s best interest? Perhaps there’s an assumption that the to fund will always be better?
in my experience this may be the case, However having come across plenty of bank direct customers over the years, the levels of cover are inadequate, that is usually a given, However the more alarming cases are the ownership structure of the policies are incorrect and non-efficient, I think one must question the level of experience of a bank sales person compared to an Independent Financial Adviser