‘Very frustrating’: Adviser slams disjointed industry lobbying efforts

Hamish Ferguson, a director of Newcastle mortgage broking and financial planning firm Vision Property and Finance, told ifa that industry bodies were advocating change “the wrong way” as the onslaught of legislative responses to the royal commission affecting advisers kept coming.

“I find it very frustrating seeing the industry so fragmented and believe most industry players are going about this all the wrong way,” Mr Ferguson said. 

“We need to learn from the mortgage broking industry [and] how well they defended their turf after the royal commission, and come up with a single message that the whole industry can get behind. The politicians say our message is confusing, and the public don’t really hear from us at all except bad news.”

The comments echoed remarks from financial services minister Jane Hume late last year, who said that while unity in the industry’s lobbying efforts had improved, “trying to get everyone on the same page has been quite difficult”. 

Mr Ferguson said he had liaised with his industry association, the AFA, to get more collaboration going between adviser bodies and ensure politicians understood the issues at stake for advisers.

“Whilst I am hearing that [the AFA] agree, there seems to be a lot of excuses being given as to why it can’t be done,” he said.

“If either the AFA or FPA came out with a single call to action that the advisers could get behind this would be great. If that same message was broad enough to allow the insurance companies and super/platforms to also get involved, then it would be even better.”

AFA acting chief executive Phil Anderson said the association had “from time to time” received member feedback that collaboration between the industry bodies could be better.

“We would say we’re already doing a lot of it – the AFA and FPA have a joint task force on life insurance and we meet on a monthly basis and we’ve been doing that for about two years,” Mr Anderson said. 

“The FPA and AFA have also been working with insurers as part of the Choice and Access to Life Insurance campaign and the FSC has been part of that, and through that we have had a number of meetings with politicians including going to Canberra.”

Mr Anderson said feedback from parliamentarians had also indicated that a more “consistent message” would better serve the advice community in its interactions with the government.

“They do like to get a consistent message, that point has been made with us a number of times,” he said. 

“I think they are supportive of where we can give a clear and consistent message about what needs to happen.”

AIOFP executive director Peter Johnston said he believed a number of factors had prevented better collaboration between the associations in recent years, including the influence of product providers and the large number of competing industry bodies in the sector.

“The likelihood of most industry associations collaborating with lobbying activities is low until some critical issues are addressed,” he said.

“The first issue is separating advice from product provider influence. The second is association management being transparent with members about whose actual interests they will support, and the third is a crowded marketplace of associations trying to be relevant to a diminishing market.”

Mr Johnston said with 14 different associations competing for membership from a dwindling pool of less than 20,000 remaining advisers, it was natural that they did not want to be seen as similar to others in the market.

“The final issue that needs to be addressed is educating the politicians on why some associations do not collaborate, and it all relates back to all the other issues,” he said.

Different member demographics were also interested in prioritising separate issues, with Mr Johnston saying AIOFP members had provided “overwhelming support” for the association’s marginal seat campaign.

“We have invited other associations to join our approach but it’s too aggressive for them, which is understandable,” Mr Johnston said.

Mr Anderson added that it was important to try and find common ground despite the fact that industry bodies “don’t always agree on every issue”.

“You need to be willing to compromise on things that may not be high priority to you and may be for other associations,” Mr Johnston said.