The latest research from Investment Trends had told financial planners what they already know – that public perceptions of planners has been significantly negatively affected by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Trust in planners has fallen to a new low, placing them in the ‘distrusted’ range, but this is less the case amongst people who use planners.
The latest Investment Trends 2018 Financial Advice Report, which reflects the views of nearly 8,000 respondents, found that more than 40 per cent of respondents believed the financial services and banking industry had not met its obligation to everyday Australians and that trust in planners was at an all-time low.
Commenting on the results, Investment Trends senior analyst, King Loong Choi said that each year, the firm asked Australians to rate their level of trust (from a scale of 0 to 10) in 11 different professions and financial services sectors, ranging from accountants to super funds to their friends/family.
“Unsurprisingly, Australians trust their friends/family the most (average score of 7.0) while politicians sit at the other end of the spectrum (3.0),” he said. “But in the last 12 months, trust levels have fallen most severely for banks and financial planners to below five out of 10, and into the ‘distrusted’ range. Banks fell from a trust rating of 5.5 to 4.8, while financial planners fell from 5.1 to 4.8.”
“The trust impact of the Royal Commission is real, and the financial advice industry must take proactive measures to rebuild trust among the wider population,” said Choi. “One of the most important steps involves lifting transparency in every single aspect of the advice process.”
Comments
still higher than for some politicians & some in the media.
More rubbish from a survey. The trust issue is used instead of acknowledging the fact that people are apathetic and won't do anything to save themselves. So much easier to blame trust issues.
Considering the constant and unprecedented barrage of negativity hurled at us lately, I think the result is actually pretty amazing. I'm looking at 4.8 and I'm saying the glass is half full. Well done to all those men and women who are doing an outstanding job delivering quality advice to the Australian community. Hold your heads high!
King Choi and co can take these figures and throw them in the bin along with the other research they do. More hangers on. 8000 people, that are probably only doing the survey for the chance to win a coles myer voucher. Yes lets take that as gospel.
Great - the glass is half full and so everything is rosy.
Lets sweep all the misdeeds, corruption and criminal activities under the carpet.
The reputation (and wherewithal) of honest and professional financial planners has been trashed just when people need good financial advice more than ever.
Nothing to see here - move on.
Yawn.
Add new comment