Most Aussies believe advisers don’t put best interests first
Only 37% of Australian retail investors believe their financial adviser always puts their interest first in 2019 down 7% from the previous year, according to a survey.
The survey by CFA Societies Australia found that this dropped to 25% when it came to institutional investors and 35% of global retail investors. Another 75% believed their adviser was legally required to put their interests above their own.
While just 24% of retail investors trusted the financial services industry, down from 31% in 2018 and 47% globally, 81% of Australian investors agree that having a financial adviser can add value.
CFA Societies Australia chief executive, Lisa Carroll, said: “With interest rates at low or negative levels in many places in the world, finding new opportunities to invest will be important to investors meeting their financial objectives, and those with an adviser are better equipped to consider these options.
“Nearly two-thirds of retail investors with an adviser are interested in accessing new investment products, compared with only about one-third of retail investors without an adviser.”
The survey also found that following the Hayne Royal Commission, 66% of Australian investors did not plan to make any changes to the way they obtained advice in response to the commission’s findings and 40% believed the commission would improve professional standards.
“CFA Societies Australia continues to promote the importance of access to quality financial advice, particularly in times of market turbulence. We advocate for and support the continuing professionalisation of the industry, including a clear best interest duty and independence of advice,” Carroll said.
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