Advisers exceed expectation of 95% of clients

25 November 2020

Most (90%) of advised clients are left in a better financial position after accessing financial advice and 95% thought their adviser always met or exceeded their expectation, according to a survey.

Research by IOOF, in conjunction with CoreData, also found that advised clients had improved mental health (50%), worried and stressed less (88%), and had better relationships with family and friends (41%).

Commenting, IOOF chief advice officer, Darren Whereat said: “Advice also helps them to identify, prioritise and achieve financial goals (91%) and personal goals (86%).

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“The top four factors clients ranked in assessing the quality of relationship were: trusted relationship, understanding of me and my circumstances and needs, demonstrable skills, expertise and knowledge and, effective communication.”

IOOF said many of the barriers to seeking advice were perceived rather than actual and were not reflected in the real-life experiences of individuals who received advice.

The research also found that:

  • Over 90% of advised clients rated their financial adviser as very good or good with respect to the value of their services;
  • 84% of advised clients agree the value of advice outweighs the costs;
  • 71% of clients found their adviser via a referral – highlighting the importance of relationships and word of mouth;
  • 93% said they would likely recommend their financial adviser to family, friends, or colleagues;
  • The research revealed the key benefits clients experienced from their advice, with it helping clients to identify, prioritise and achieve financial and personal goals, including that:

o 93% believed advice provides clarity around goals and progression towards them

o 91% agreed receiving advice helped them to achieve their financial goals

o 86% agreed advice helped them achieve personal goals

o 82% believe advice helps inspire them to work towards and reach their goals; and

  • Almost half (46%) of unadvised individuals were open to the idea of seeking advice in the future, with 80% more likely to consider advice if they had a specific need identified.

Advised clients also agreed that technology played an important role in advice but did not replace the benefits of face-to-face interactions.

“This research supports what we have long suspected – that relationships will always be number one, but that there are many ways to introduce better technology behind the scenes so that advisers can spend more time in face-to-face interactions and building trusted relationships with their clients,” Whereat said.

However, 72% of participants who were unadvised said they would be more likely to seek advice in the future if they found an adviser they felt they could trust.

For those that were not seeking advice, 61% believed they did not have enough assets or wealth to need advice, 55% believed it was not the right time to seek advice, and 54% thought they could not afford advice.

“Australian financial services licensees must commit to supporting and helping advisers deliver advice to clients in an efficient way that not only makes advice practice businesses valuable and sustainable, but also helps to remove perceived barriers to seeking advice and makes advice more affordable, more accessible, and more engaging for more Australians,” Whereat said.

The research surveyed 11,615 advised clients and 1,000 unadvised individuals.

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Congrats to Coredata and IOOF for producing this important research, which confirms the overwhelmingly positive experience for consumers of financial advice, and supports several previous studies.

Here is a question - Did ASIC deliberately conceal similar research findings from the research project which culminated in REP627: 'Financial advice: What
consumers really think'?

It seems implausible that the researchers, who surveyed users of financial advice extensively, did not produce any statistics on the level of trust or satisfaction with financial advisers. In fact the report indicates they must have asked the question, because the following comment was made - 'people who had recently received financial advice had more positive attitudes towards financial advisers than those who had not recently received financial advice'. However no statistics were presented in the document to support this finding.

Instead, they chose to report obscure statistics such as '49% of online survey participants agreed that financial advisers were more interested in making themselves rich than in helping their customers'; and '37% of online survey participants agreed that financial advisers did not generally have the customer’s best interests at heart'

This is another example of ASIC deliberately white-anting the financial advice profession so they can push their own agenda, instead of building trust in the financial services system within the community which is their mandate.

Finally! A report that shows what us financial planners have known for years and what makes us get out of bed in the morning! NOW can the Regulator, Licensees and governments stop interfering in the system and just make it easier for us to do our job!

these are well-known facts.

even the ASIC makes reference to the "psychological benefits" of financial planning in their Regulatory Guides.

but DOING is something entirely different. there is a chasm between knowing and doing. and they won't do.

what will happen after the survey asic has commenced will be more new and improved regulations requiring at least a dozen new forms to be signed.

that is what they will be DOING.

Dear ASIC, Ms Hume and the Robo Myth dreamers.
Please explain how your dream machines and algorithms will meet these 4 most desired Adviser client wants ?
“trusted relationship, understanding of me and my circumstances and needs, demonstrable skills, expertise and knowledge and, effective communication.”
Let’s see what relationships Dexter Financial Product Robo sales will create.

Stick that up your Consumer Advisory Panel ASIC !
Maybe you should get them to pay another couple of academics with connections into the FASEA board to produce a 14 page paper on how valuable the experience can be if one chooses to work with a trusted adviser ??
We would be waiting a very long time for that to happen as it wouldn't suit the agenda being driven by CHOICE, ASIC and all the academics that are on the left wing ethical gravy train wringing the neck out of the financial advice business.

Validates most research findings over past five years
Consumers who do use an adviser like their experience.
Consumers do not like the financial advice industry and the product it sells - all the usual reasons.
Positive first experiences with advisers are strongly correlated with long term positive feelings about their adviser

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