The Financial Planning Association (FPA) has hit out at financial services companies using the introduction of Super Choice on July 1 to flog their products, saying the practice is confusing consumers about the underlying principles of the Choice program.

FPA CEO Kerrie Kelly says the advertising is focusing on the start date of the Choice program, which is wrongly encouraging people to rush out and swap funds, rather than considering the individual merits of different funds.

She says most super fund members needn’t change funds straight away. “We would like to see more messages saying there is no need to change on day one and more organisation prompting a considered, long-term approach.”

“By creating a sense of urgency for change, advertising will end up confusing and misinforming superannuation fund members.”

Ms Kelly says while the FPA doesn’t support the concerns of the Australian Council of Trade Unions that the legislation may encourage mis-selling and churning, it believes advertising campaigns could cause people to change funds “for the wrong reason”.

“For many superannuation fund members, particularly those nearing retirement, advice from professional financial planners could be extremely important if they are to avoid making a costly mistake in switching their super funds,” she said.