There is both good and sobering news stemming from the results of a new survey into consumer attitudes towards financial advisers.
Conducted by the AFA in association with industry research group, CoreData, the survey’s key findings were that consumers who have financial advisers:
- Understand the role of their adviser
- Trust them
- Highly value the advice they are given
- Are happy to pay for that advice, be it via a fee or commissions
- Are happier with their investments
- Have greater peace of mind than those who are trying to navigate the complex world of investment and insurance without the help of a financial adviser
The research also found that consumers who did have financial advisers ranked them the third most trusted of all professions, behind only medical specialists and dentists.
AFA CEO, Richard Klipin, commented that the findings indicate the Government has seriously misread the major issues relating to financial advice:
“The research clearly demonstrates that there is great value in financial advice – otherwise, those who received advice would not have rated advisers so highly.”
… the Government… appears to have blinkered vision around the real issues
“However, the Government, with its fixation on adviser remuneration, appears to have blinkered vision around the real issues – which is Australians need financial advice and are better off when they receive it,” added Mr Klipin.
In relation to payment for advice, the research revealed there is no overwhelming evidence to support that consumers want to pay for advice in any one particular way: “What they really want is value for money and the cost of advice to be transparent and agreed by them upfront,” Mr Klipin said, “And that is what they are currently get.”
… consumers perceive home and contents insurance… to be more important than life and income protection insurance
While this perspective of financial advisers through the eyes of their clients offers a very positive message about the value of the services they provide, the research also unveiled a consumer attitude that perceives home and contents insurance, comprehensive car insurance and medical insurance all to be more important than life and income protection insurance.
Even those consumers with advisers, although they rated the importance of all insurance higher than those who did not, still felt home and car insurance was more important than life and income protection cover.
Click here for a copy of the ‘Back to Basics’ AFA white paper on consumer attitudes towards advisers.
