Industry super revives bank bashing TV ads

Not-for-profit funds have revived a TV ad attacking bank fees, as they seek to capitalise on their super rivals’ inquiry battering.

Industry Super Australia has no intention of reviving its “fox and henhouse” ads.

Not-for-profit industry super funds have revived a four-year-old TV commercial bashing the banks over their fees, just in time for the AFL and NRL grand finals, as they seek to capitalise on the battering their for-profit rivals have endured at the financial services royal commission.

The Industry Super Australia ad, which aired on Saturday during the AFL semi-final between the West Coast Eagles and Melbourne, shows cash appearing in the hands of bankers as they sell financial services to customers, accompanied by the “ka-ching” of a cash register.

It has been given a new closing voiceover urging Australians to “join the thousands making the switch to a super fund” carrying the Industry Super hands symbol - a reference to surging inflows at the employer-and-union-controlled funds over the past 18 months that is believed to have accelerated after a laundry list of bank wrongdoing was exposed at the royal commission.

However, ISA has no intention of reviving its controversial “fox and henhouse” ad, a campaign depicting the banks as predators ready to seize workers’ savings over which the head of AustralianSuper, Ian Silk, was grilled at the commission.

New ISA chief executive Bernie Dean told The Australian sports fans could expect to see the ad during both grand finals this weekend.

“This isn’t a victory lap,” Mr Dean said.

“There is real momentum out there and we’re helping people find a fund that puts their interests first.

“Our growing membership brings with it a greater responsibility on us to help get super working better for all Australians.”

Australian Prudential Regulation Authority statistics show that in June industry funds became the biggest managers of workers’ funds, with $631.6 billion under management against $622.3bn held in retail funds.

The No. 1 spot came thanks to an $88.4bn increase in funds under management over the previous 12 months, which was more than double the $34.5bn achieved by retail funds over the same period.

Statistics for the three months to the end of September, which take in the superannuation round of hearings at the royal commission, won’t be available until the end of November.

However, anecdotal evidence from within the industry sector is that the commission turbocharged the shift, with individual account-holders leading the charge away from the bank-run funds.

The ad is the first of three, culminating in the fox and henhouse commercial, that ISA launched in 2014 after research revealed industry fund members were at risk of being inadvertently switched to retail funds, both individually through bank branches and via their employer’s choice of default fund.

A second advertisement, depicting a business owner rejecting a greedy banker’s bid to take over staff super, aired in 2015.

The fox and henhouse ad was originally slated to air in 2016, but was held back as industry funds lobbied government.

AustralianSuper's CEO Ian Silk leaves the banking royal commission. Pic: Aaron Francis

Mr Silk told the royal commission that AustralianSuper’s board was “concerned to take a prudent and cautious approach to the airing of the advertisement lest that the organisation be accused of adding to the typical febrile atmosphere around elections”.

“So AustralianSuper’s position was not to participate due to the timing of the election as opposed to the substance of the advertisement.”

The fox and henhouse ad eventually aired in March last year.