ASIC research confirms value of advisers

The Australian Securities and Investments Commission (ASIC) has released research which it says shows Australians believe financial advisers can offer significant expertise in financial matters, yet they remain distrustful of using them.

The research, released today, showed that while 41 per cent of Australians intend to get personal financial advice in the future, many will not proceed because of perceived barriers such as distrust, high cost and the perception that financial advice is only for the wealthy.

The research found that 27 per cent of Australians had received financial advice in the past, and 12 per cent of Australians received advice in the past 12 months.

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It also highlighted that a significant majority of consumers sought financial advice because they felt advisers had expertise in financial matters and could recommend products that they, as consumers, could not normally find on their own.

Commenting on the research, ASIC commissioner, Danielle Press said that the good news for the industry was that consumers wo had recently received financial advice had more positive attitudes towards financial advisers than those who had not.

“The good news for industry is that consumers who had recently received financial advice had more positive attitudes towards financial advisers than those who had not. Moreover, even limited knowledge of industry reforms such as FOFA (Future of Financial Advice) appears to have improved consumer attitudes towards the sector. So, it is even more important for industry to get on board with the reforms.”

‘Although not all Australians need financial advice, it is imperative that people wanting advice when making critical financial decisions are able to access high quality advice and equally, feel confident that the advice is in their best interests,’ Press said.

The research found that consumers generally seek financial advice for investments such as shares and managed funds, retirement income planning, growing their superannuation and budgeting or cash flow management. Interestingly, it highlighted that use of digital advice (also known as robo-advice) is still very low (one per cent). However, 19 per cent of research participants said they were open to getting digital advice once it was explained to them.

‘Financial advisers have an important role to play in helping consumers improve their financial position, and there is a real opportunity for the advice industry to rebuild that trust by reorienting itself and putting consumers at the heart of its services,’ Press said.




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Lipservice

Financial advice is only for the wealthy. And the Federal government (predominantly through ASIC) is exacerbating this.

So in regard to where it said
"there is a real opportunity for the advice industry to rebuild that trust by reorienting itself and putting consumers at the heart of its services"
That means all these long years to date their clients/consumers were not at the heart of their services

ASIC has based its conclusions on academic research that samples a group and then reports the response from questionnaires. The answers are then extrapolated across the general population. When surveys were completed prior to the last general election, the conclusion was that Bill Shorten's Labor would win by a comfortable margin. The Polls' responses were extrapolated and guess what? I have no confidence in ASIC's report in relation to client trust. The trust is there, but adverse reporting creates the perception of mistrust. Have we forgotten about Greg Medcraft and his roll with ASIC. He was totally biased and his conduct unconscionable. We are trusted by our clients in majority.

Now ASIC is trying to play "good cop bad cop."
But they spared no expense ripping the financial planning industry apart by advisers a new one.
Now they are trying to put a bandaid on it and blow smoke to kiss and make up!
It is ASIC's reputation that has come out of this severely deteriorated and less trusted!

Now Mr Aussie battler, its important that you get good advice... it's a shame you won't be able to afford it.

Advice is tax deductible. Poor financial advice is not.

I view this as a positive sign that ASIC is moving on from the indiscriminate vilification and persecution of licensed advisers that was championed by Medcraft, to a more professional and balanced approach under Shipton. Perhaps I'm being overly optimistic, but fingers crossed.

Its too little too late. We should not have lost trust as 99% of advisers did well with clients. Now the costs for advise will possibly enjoy 100% + rise and advisers willing to take on a new client or available advisers will be limited. Only for the wealthy now. Ethics are out the window now, for only the wealthy will afford. The damage to far too many advisers is permanent now.

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