Age a factor in investor-planner satisfaction
Investors in the 30-34 age group and high net worth investors over 60 are more satisfied with their financial adviser than other investors, according to the Lifeplan ICFS Financial Advice Satisfaction Index.
Adelaide University's ICFS does the survey every six months, sponsored by Lifeplan Funds Management, and surveys over 400 investors on their perception of their advisers.
The most recent survey showed overall satisfaction with financial advisers is up 2.5 per cent, with the index score sitting at 72.3. This was mainly due to a 9.11 per cent increase in the perception of performance.
Head of Lifeplan Matt Walsh said changes in investors' perceptions of advisers and investment performance had implications on how advisers manage their relationship with clients.
"Knowing that clients in the 30-34 age group feel comfortable with the advice they are receiving means advisers can concentrate their efforts on reassuring those investors who have not recorded such positive perceptions," he said.
"Those in the 30-34 age group are tracking a better outcome of all three perception measures, while those aged 60 and over also show increased satisfaction on all three measures, as their investment levels increase," he said.
Trust and reliability shot up by 5.6 per cent but was largely offset by a drop of 4.3 per cent in the perception of technical ability.
Client perceptions also improve when the same adviser gives advice for a longer duration, the survey found.
Walsh also said advisers should take advantage of longer-term clients' willingness to recommend their financial adviser to a friend or acquaintance.
The survey found the perception of advisers' technical ability is down on the 12-month result but stable since the last survey in April.
Walsh said this could be a reflection of increased client expectations as market conditions improve.
The survey found female investors have a higher perception of their advisers and a lower assessment of their own financial knowledge.
They rank advisers higher than male investors do, which could reflect the lower assessment of their own financial knowledge or male investors' greater self-belief in their own abilities.
AUTHOR
Malavika Santhebennur
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
