Survey questions planner crackdown

A planned crackdown on advisers in the lead-up to super choice has been put into question by new survey findings, which show the majority of clients are satisfied with their financial planner.

The Investment and Financial Services Association (IFSA) survey of 600 consumers found 83 per cent of those who frequently seek advice from a qualified financial planner, and 52 per cent of infrequent users, were happy with the level of service received.

The findings back up similar survey results released in recent months by Credit Suisse Asset Management and the Financial Planning Association (FPA).

“These results show that the people who use financial planners invariably say they’re useful and provide a very effective service,” said IFSA chief executive Richard Gilbert.

He said he wasn’t surprised by the results of the survey, given the introduction of Financial Services Reform (FSR) last year.

“FSR has been good for the planning industry in terms of performance and also in terms of perception,” Gilbert said.

However, the positive results of the IFSA survey and others are unlikely to deter the Australian Securities and Investments Commission (ASIC), which last week reiterated its plans to crackdown on any unscrupulous operators.

While ASIC was unavailable for comment last week, Money Management understands the crackdown will not in fact involve ‘shadow shoppers’ as otherwise reported, but rather an evaluation of the advice given to legitimate consumers.

The IFSA survey was conducted by market research firm Crosby Textor mid-last year, but the results have only now been released.

As well as the results on consumer satisfaction, it found 63 per cent of frequent financial planning users and 41 per cent of infrequent users felt more informed about financial matters due to their experience with an adviser.

However, only 22 per cent of frequent users and 10 per cent of infrequent users said they were looking forward to retirement after consulting an adviser.