Client perceptions of the reliability and technical skills of their financial advisers have improved significantly in the past six months despite share market performance, according to the Lifeplan/International Centre for Financial Services (ICFS) Financial Advice Satisfaction Index.
Adelaide University's ICFS undertakes the study every six months, sponsored by Australian Unity subsidiary Lifeplan Funds Management, and collects data from just over 400 investors on their attitudes towards their advisers.
The most recent study, conducted in April and May this year, showed improvement in all three major drivers: perception of trust and reliability (up from 7.44 to 7.76), perception of technical ability (up from 6.99 to 7.41), and perception of investment performance (up from 5.61 to 6.02).
The resulting index score of 71.30, up from 67.46 in the previous survey, is at its highest point since October 2008, according to Lifeplan.
While share market performance always correlates with perceptions of investment performance, the same does not hold for the other drivers, according to the head of Lifeplan Matt Walsh.
"The dramatic increase in perceptions of trust and reliability and technical ability, at a time when the ASX 200 was doing very little, suggests that advisers have made good progress in helping clients understand the true benefit that they can provide," he said.
Client perceptions are influenced by other skills such as tax advice, estate planning or structuring of finances rather than just investment performance, he said.
The study also found higher satisfaction levels where the client had been with the financial adviser for more than five years.
"It's understandable that [newer clients], who have only had an adviser during the worst of the global financial crisis, are disillusioned by financial markets and investments, but it's important advisers don't give up on educating them on the full range of financial planning options available to them," Walsh said.
