Despite the negative publicity and other fall-out from the Royal Commission a new survey has confirmed continuing strong demand for financial advice, particularly if it is provided by a genuinely independent adviser on a fully-transparent fee for service basis.
A survey undertaken by the Profession of Independent Financial Advisers (PIFA) carried out in the immediate aftermath of the Royal Commission, which canvassed the views of 75,000 people, has delivered a broadly positive message on the future of financial advice.
It found that while 57% of respondents were not currently receiving financial advice, two-thirds of respondents (62%) saw value in advice which the PIFA group suggested represented a massive opportunity for financial advisory service businesses.
However, from the point of view of PIFA, the most important finding was that respondents saw most value in obtaining advice from advisers who were genuinely independent.
It found that 73% of respondents regarded an adviser’s status as being genuinely independent as being very important, while a further 14% said it was somewhat important. What is more, 84% of respondents said they would be more likely to engage in a long-term relationship with a financial adviser if they were genuinely independent.
The survey also confirmed strong support for a fee for service regime over commission-based remuneration, with 86% of respondents favouring a transparent fee regime.
The survey analysis by PIFA concluded on the note that “there is huge untapped potential for independent financial advisory opportunities in Australia”.
“Australians understand and value the benefit of financial advice from genuinely independent professionals which can be paid for via transparent fees.”