Two surveys from CoreData and Vanguard have shared the level of trust the Australian public has in financial advisers, and how it has changed since the Hayne royal commission.
Firstly, a CoreData survey found public trust in financial services, and particularly financial advisers, has almost doubled since the fallout from the royal commission in 2019.
In the wake of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the public perception of financial advisers and the wider financial sector was severely damaged.
However, according to CoreData’s latest biannual trust survey on trust, financial advisers are now on par with accountants at 6.1 out of 10, marking a massive recovery from the 3.1 seen in 2019 following the royal commission.
In a LinkedIn post, CoreData suggested that this is due in part to the introduction of the Financial Accountability Regime (FAR) in 2023 which shifted the landscape to one where competency was “no longer a differentiator” but expected.
“In 2025, trust is primarily driven by advisers’ ability to act in the client’s best interests and consistently deliver on promises,” CoreData said.
In a separate survey, Vanguard stated Australia’s trust in financial advisers stands at 45, while financial services overall has a trust rating of 52. A ranking of 1–49 indicates distrust, it said, while 50–59 is neutral. The figure for Australia compares to 50 for financial advisers in the US, 39 in the UK, and the highest score of 80 seen in India.
Looking at how advisers can go about building trust, Solace Financial principal and financial adviser Scott Quinlan said on an FAAA blog earlier this year that “transparency is fundamental”.
Advisers, he said, need to demonstrate transparency when communicating with clients by being honest when they don’t have an immediate answer rather than fabricating something for the sake of answering the question, as well as being upfront and honest about fees, building a sense of integrity and confidence. Demonstrating expertise and continuous learning can also “significantly enhance this trust” with clients.
“Clients are more likely to trust and value your advice when they feel you are being open and honest about all aspects of your service,” he said.
However, emotional factors are also an important factor in building trust, with Quinlan suggesting that utilising empathy, creating a safe space for clients, and supporting their growth through education are all key parts of fostered long-term client relationships.
This emotional effect was echoed by the Vanguard report, Emotional and Time Value of Advice, released earlier this month which showed access to a financial adviser, whether human or digital, significantly boosts respondents’ positive emotions.
Around eight in 10 (79 per cent) of those seeing a human adviser and 57 per cent of digitally advised clients likewise reported a decrease in negative emotions, and 86 per cent of respondents overall said they now have greater peace of mind.
Meanwhile, research by Fidelity suggested establishing trust among female prospective clients is particularly vital as 43 per cent of women surveyed said they were concerned about finding an adviser they could trust. With just 16 per cent of women saying they had seen a financial adviser, compared to 22 per cent of men, the research highlights an opportunity for advisers in the market.
