A new website which rates advisers on their qualifications and customer service has been launched to the public, featuring the names of 18,000 pre-listed advisers.
The site, called Adviser Ratings, has been designed to address the “crisis of confidence” that exists among consumers seeking financial advice. 18,000 financial advisers have been listed in the site already, and the public is invited to post a review and rate their advice experience, similar to the way TripAdvisor allows the public to rate travel experiences.
The brainchild of former CHOICE media spokesperson, Christopher Zinn, and founding member of consumer movement ‘One Big Switch’, Angus Woods, Adviser Ratings was officially launched to the public this week. However, due to technical problems with the website, Mr Woods told riskinfo that individual advisers had yet to receive a direct communication from the service to let them know it was live.
“We have been telling advisers along the way that this is coming. We’ve been working with the advice associations and some core dealer groups, to ensure we have a sound ratings system.
“We will be emailing advisers to let them know that the site is available and how to go about completing their profile,” Mr Woods said.
The adviser information was sourced from publicly available material, including ASIC’s existing listing of authorised representatives. Mr Woods told riskinfo that while there would be some negative ratings or comments posted by members of the public, the purpose of the site was to “shine a spotlight” on the people who are bringing the advice industry forward.
We want to rebuild confidence in the industry and grow the number of people getting advice
“We’ve all been hearing the negative news about advice in the press. There’s also been some negative commentary from people like Alan Jones for example. We’re taking a proactive stance in saying that not all advisers can be thrown into the one bucket.
“We believe in financial advice. We want to rebuild confidence in the industry and grow the number of people getting advice, but you can only do that if you come at it from a consumer perspective,” Mr Woods said.
“We’re not aligned to anyone – this is a free service to try and reconnect advisers and clients.”
Mr Woods encouraged advisers to update their profile, and recommend their clients add their own reviews. He was also keen to reassure advisers that there were strict processes in place to verify and monitor customer reviews.
“I don’t think there will be an influx of bad reviews or that this will result in bad publicity for the advice industry. It’s up to us to manage negative reviews. We have strict moderation processes in place to manage reviews, following the guidelines from the ACCC.
“Where there are a significant number of negative reviews, or if we are receiving feedback that points to poor conduct then we will work with the adviser and their licensee to alert them to the issue.”
Association of Financial Advisers (AFA) CEO, Brad Fox, said he was supportive of the program, and believed it would be a positive thing for the sector.
“We can either get behind it, or we can let it happen to us. We know from the surveys we have conducted with clients that 80% of people with an adviser rate their service very highly. We shouldn’t be afraid of this.
“But where there are negative comments then we need to respond to them. One of the AFA’s core values is accountability, and this is an example of where we can face into some of the negative perceptions that are out there,” Mr Fox said.
About the ratings process
According to the Adviser Ratings website, advisers listed on the website agree to meet the following minimum requirements:
- Being appropriately licensed
- Have never been convicted of a crime relating to fraud or financial mis-dealings
- Have never been bankrupt
- Have not been banned or disqualified from advising in the last 7 years
The adviser is then rated using three information sources:
- Industry/Professional body membership – Advisers are scored based on their qualifications and whether they are a member of a professional body
- Licensee – Advisers who operate under a license that has not had an enforceable undertaking in the last four years are eligible for a 4% bonus score
- Customers – The customer answers questions in relation to the service they receive from their adviser, which are used to create a score
Click here to visit the site.
It would be nice if they had a system to check if their details are up to date. I just did a search on my name. It lists me as working for an employer that I left in December last year!
Of course, I’ve emailed them to let them know.
This is a great idea where great client experiences will be heard and promoted by the adviser, licensees and the wider community.
Great,
now I can do my best to get a lawsuit going should someone impinge my professional reputation –
fortunately – my business is generated from word of mouth – but there is always a clown
Great idea…. but a few questions:
1. If this is an independant site why is Adviser Ratings a representative of iPraxis – ‘an integrated financial services company’ selling advice?
2. Why doesn’t the site cater for risk only advisers? It only queries the size of investment an adviser is interested in as a qualifier to direct clients to advisers.
3. Why is the frequency of compliance audits a rating factor? Good advisers who achive quality audit ratings are rewarded by annual audits. Advisers who do not achieve good ratings are reviewed more regularly. Does the site reward advisers who are reviewed more regularly?
4. Why the questions regarding satisfaction with dealer group and willingness to move? Is this a recruiting site?
While I support the idea, this site raises questions and seems to require more work to make it of true value to clients.
I also looked up my own details. They were incorrect. Out of date by well over a year.
After contacting them it appears that there are many adjustments to be made so it may take a little while.
I would also like to see niche areas of expertise or interest that a client is interested in being searchable.
this is an absolute disgrace. to rate advisers. what a commodity website. Ipraxis is private company. Maybe Ipraxis should should have their own rating system, my experience with them has been anything but impressive to say the least. I have made contact with ASIC about this and they have shared with me there complaint link: http://www.ASIC.gov.au/complain
I personally will be asking this website to remove my details. There should be an opt out. I do not want to be rated nor need a rating system on me.
I take it that transparency should also include that Ipraxis is a financial planing company.
I wonder when all the unhappy clients will be called by Ipraxis? sorry I am being a cynic?
The site is a sham. Data mining at best.
A client and my best friend sat and did the ratings to see the outcome. he gave me top ratings for every question.
Response 100% Nope just 97% .
Explain that??
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