Honesty and integrity key advice considerations

Honesty and integrity are key considerations that new advised clients look for when selecting an adviser, followed by independence, according to Investment Trends.

The research house’s latest financial advice report found loyalty increased among advised clients with 75% of advised clients intending to continue their existing adviser relationship, up from 62% in 2020.

However, there was an increasing number of Australians that said they had an unmet advice need at 61%, with an estimated 3.2 million individuals open to using a financial adviser within the next two years.

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Investment Trends found while 1.8 million individuals used an adviser, the figure had declined at a rate of 100,000 per year since 2020. The decline was due to perceived high costs and lack of investible funds.

The firm’s associate research director, Kurt Mayell, said: “The pandemic has prompted many to consider their financial situation and many Australians are now looking to expedite their decision to seek or consider advice options.

“Over the next two years, there is likely to be significant demand for advice in areas such as tax reduction strategies capital preservation, and environmental, social and governance investing.”

Investment Trends found over the last year there was an increase in the proportion of advisers clients believing their financial position had improved due to their adviser with the average portfolio growing by $140,000.

The research also found that those with unmet advice needs increasingly said they would turn to their superannuation fund for advice with about 1.5 million members approaching their fund for advice over the last 12 months.

The most common inquiry topics were additional super contributions and changing investment options.

However, barriers that held back members from seeking advice from heir fund were unclear costs and a lack of awareness about what advice topics members had access to.




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There will not be enough financial advisers left to provide advice after the deliberate and misguided ideology implemented over the last 5 years.
The regulatory overreach and the venom directed toward good people over the last near decade has broken their resolve and in many cases broken them as a human being.
It has been nothing short of an orchestrated cleansing programme based on academic and biased ideology.
It has been a disgrace and the Liberal Govt are entirely complicit.
Malcolm Turnbull was absolutely hopeless regarding anything to do with financial services and Scott Morrison is so far removed he wouldn’t even know what it was.
Josh Frydenberg holds an inherent hatred and disdain of financial advisers and does not care in the slightest.
It showed very clearly when he enthusiastically reached out to shake Kenneth Hayne’s hand when handing over the findings from the Royal Commission.
This has been a Liberal Party stitch up and a planned destruction of small business.

Totally agree, and I'm heartbroken for clients and colleagues alike as I see the destruction so willfully and wrongully wrought, usually by people who themselves have never engaged a financial advisor. I've seen the rough draft of a survey of ex amp planners checking on their mental health, and its gut-wrenching. I'm hoping one day it sees the light of day, and those destroyed families get duly recompensed.

These research findings seem to reflect an assumption that the role of financial advisers is to generate higher returns on invested funds. That is typically only a small part of what financial advisers do, and in some situations it's not actually what the client requires at all.

Hard to take this research seriously if it doesn't ask the right questions to begin with.

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