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National President’s Message
Are you prepared for changing times? These are transformational times in funerals. There is more scrutiny into the funeral industry by media, government, Royal Commissions, the Australian Competition and Consumer Commission and the public than there has been in decades, if not ever. The two main themes of attack against the funeral industry are:
firstly, that some funeral directors are not transparent with client families about their pricing when quoting and making funeral arrangements; and
secondly, that some funeral directors are taking advantage of client families by price gouging at their most vulnerable time.
AFDA Members are well placed to respond to this scrutiny if complying with all AFDA standards of professionalism. Put simply, funeral directors must be completely up-front with client families by itemising all costs when quoting or when arranging a funeral and funeral directors must deliver value for money to client families in our service offerings and our product offerings. Simultaneously, funeral directors across Australia are also responding to, or promoting, two extremes in funeral service offerings, from highly personalised, bespoke funerals to no-service cremations. Adapting to the widening extremes in funeral service offerings requires funeral directors to re-evaluate how we are serving our client families. We must lead and adapt in order to remain relevant as funeral professionals to client families. Funeral directors must increasingly deliver value to client families to avoid being replaced by newly emerging direct disposition start-ups or ‘do it yourself’ (DIY) options.
Funeral directors exempt from Prepaid/ Bond law changes after AFDA lobbying The Banking Royal Commission recommended increased regulation around funeral insurance which also had the effect that funeral directors distributing prepaids and bonds on behalf of Friendly Societies may have been required to hold Australian Financial Services Licences. AFDA commissioned management consulting firm NOUS Group to assist in developing AFDA’s submission to the Federal Treasury, demonstrating how prepaids and bonds differed from funeral insurance.
AFDA was successful in achieving an exemption for funeral directors from the legislation changes. It will not be necessary for funeral directors to hold a Financial Advisor’s licence when distributing a prepaid funeral or funeral bond on behalf of a Friendly Society. Avoiding financial advisor ‘red tape’ is a very helpful outcome for our Members.
$10,000 Cash Bill – AFDA Federal Senate Appearance The Federal government has introduced legislation into Parliament which seeks to outlaw the payment or receipt of $10,000 or more in cash. In response to a Member’s concerns about the harsh impact of this proposal on some of our client families at the most distressing time of their lives, AFDA delivered a written submission to Parliament seeking an exemption for funeral directors and client families. Over 2,650 submissions were received and 147 were selected to be published on Parliament’s website, including AFDA’s submission. The Economics Legislation Committee of the Senate requested 13 parties to appear before their Committee for questioning in Parliament House, Canberra on 12 December 2019, including AFDA. As National President, I represented AFDA and my evidence is published in Hansard. AFDA made a further written submission in January 2020 in response to the Committee’s questions on notice. The Age and Sydney Morning Herald reported on AFDA’s submission. The Economics Legislation Committee report to the Senate on 28 February 2020 recommended that further investigation take place into funerals before passing the Bill.
Four pillars of association – why does association produce member benefits? • Scale: provides relevance and influence.
Standards: provide credibility and a point of difference.
Unity: There is power in association. We are stronger united and weaker divided.
Interdependence: Big members need small members and the small need the big.
Strengthening our Association’s future Without sufficient scale, any association, including AFDA, is at risk of becoming a boutique friendship group with little or no influence. The recent drive by our CEO Dale Gilson to recruit new members who meet AFDA’s professional standards has strengthened AFDA’s lobbying power and provided greater financial resources to increase member benefits. I congratulate Dale on the excellent work he has done to strengthen our Association.
Coronavirus (COVID-19) The effects of COVID-19 are evolving daily at the time of writing. AFDA is doing everything we can to support Members through these unprecedented times.
Warm regards
Andrew Pinder
