Clients maintain faith in advisers
Geoff Lloyd
Although clients are more anxious about their financial security than they have been in years, an overwhelming majority have faith in their adviser’s ability to help them achieve their long-term financial goals, according to St George group executive Geoff Lloyd.
Speaking at the Securitor Convention in Auckland, New Zealand, yesterday, Lloyd said a recent internal survey of Securitor’s network of advisers found that last year’s sub-prime mortgage meltdown, subsequent market turmoil and rising interest rates and property prices are among the factors that have caused a growing number of clients to fear for their financial futures (particularly with regard to their retirement savings). However, most advisers said they believed they have successfully communicated to their clients the importance of sticking to long-term financial plans — something the survey results seem to confirm.
According to the survey, 70 per cent of client portfolios have remained unchanged in the past two years and 80 per cent of changes made were instigated by an adviser.
“This shows clients trust your opinions and respect your experience,” Lloyd told advisers.
“What investors are looking for — and receiving via their Securitor financial advisers — is quality information.”
He added: “Advisers are also telling us that more than 30 per cent of their clients remain positive about their financial situation and another 30 per cent or so are not so worried.”
Lloyd said times as volatile as these present an ideal opportunity for advisers to remind clients of the value of professional financial advice.
He said it was also a good time to remind clients that the collapse of businesses such as Westpoint, ACR, Basis Capital and Fincorp are corporate and not system failures.
“[Market volatility] is temporary … You have an opportunity now to prove your value as an adviser and the sustainability of your business model.”
Lloyd said the Australian financial services profession is in far better shape at present than its counterparts in the US and the UK. He said that while US and UK regulatory bodies have reported dramatic increases in the number of complaints against advisers, the Financial Industry Complaints Service in Australia has reported a significant decrease.
According to Lloyd, this, the fact that increased competition within the Australian financial services sector has led to fee decreases and recent enhancements to an already robust superannuation regime are all evidence of a profession which “is facing uncertain times, but has a very certain future”.
In his view, dealer groups and advisers who remain focused on their investment strategy structures rather than simply on returns, keep clients well-informed and have defined processes in place to attract and retain staff will fare best going forward.
AUTHOR
Mike Taylor
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
