The Australian Securities and Investments Commission (ASIC) and the Australian Consumers’ Association (ACA) will engage in a survey of the financial planning industry designed to test the quality of advice.
The survey will involve selected consumers approaching 150 financial planners to obtain advice and financial plans which will then be examined by a panel of experienced planners and compliance experts.
In an effort to gather the widest possible results the survey will cover advice available across the industry including banks, life insurance companies, financial planning firms, stockbrokers and accountants.
The survey repeats similar exercises undertaken in 1995 and 1998.
The Financial Planning Association (FPA) has also agreed to take part in the survey and will be involved in the design of the survey itself and provide assistance throughout the assessment period.
Consumer volunteers are being recruited through the April edition of Choice, the official magazine of the ACA. The results of the survey will be published in February 2003.
ASIC chair David Knott says the driver for the survey was the need to ensure quality advice was on offer to satisfy a growing market demand.
“With the growing importance of financial planning for Australian consumers it is vital that we track the quality of advice provided in the marketplace”, Knott says.
“With an ageing population and the increasing emphasis on superannuation, consumers must have access to honest, competent and non-conflicted advice,” Knott says.
