Consumers reject industry qualifications
Themajority of high-net-worth individuals reject the qualifications from Australia’s major professional associations when choosing a planner, a new study conducted by the Australian Investors Association (AIA) claims.
The study, based on a poll of 240 delegates to the recent AIA national conference, found only 48 per cent of those surveyed, who each had at least $1 million to invest, considered a professional qualification from groups like the Financial Planning Association (FPA) or CPA Australia as an important factor when choosing a planner.
By comparison, 97 per cent of respondents said that a rating gained independently of professional associations would be an important factor when choosing a planner.
The director of the AIA, David Child, says the major professional bodies had not taken investors into consideration when forming their designations.
He says investors do not understand the range of professional designations, such as the FPA’s DFP and CPA Australia’s Financial Planning Specialist.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
