Confirmation — planning has been hurt by negative reporting
A new survey has revealed the degree to which negative publicity has impacted the financial planning industry.
The RaboDirect Financial Health Barometer survey has revealed a dramatic decline in perceptions of financial planning between 2014-15 — the period during which newspaper and television reports critically traversed issues within Commonwealth Financial Planning, Macquarie Group, and National Australia Bank.
The survey data covers a five-year period during which it noted that there had only been a slight shift in the number of people who distrust financial advice.
But it went on to note that "when looking at yearly comparisons, there was a substantial shift between 2014 and 2015. In 2014, 40 per cent of people said that they trusted financial advice, but in 2015, this figure fell to 29 per cent".
"When comparing different generations, although more Gen Ys trust financial advice, there has been a bigger downward trend year-on-year in this group compared to other generations," the survey analysis said.
"In 2014, 49 per cent of Gen Y agreed that they trusted advice provided by planners or advisers. In 2015, this figure had dropped ten percentage points to 39 per cent."
It said that for Gen X in 2014 this figure was 41 per cent, dropping to 26 per cent in 2015, a change of fifteen percentage points and for Baby Boomers in 2014, the number was 31 per cent, falling to 23 per cent in 2015, a difference of eight percentage points.
Recommended for you
ASIC has banned a former financial adviser for his role in encouraging clients to invest their retirement money in the Global Capital Property Fund, run by United Global Capital.
With reporting season concluded for another financial year, Money Management rounds up the result of Australia’s listed advice licensees and where they are looking to in the year ahead.
Having acquired Evidentia with the goal of building out its managed accounts division, GDG has reported a 49 per cent rise in managed account funds under management in FY25.
The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted.
