52% say planner education adequate
Financial planners have the opportunity to demonstrate to clients their education qualifications and ongoing training they undertake, as it is valued, according to RaboDirect.
However, according to the bank's financial health survey, 52 per cent of Australians do not think education standards for planners need to be higher.
Rabo national manager for adviser services, Bede Cronin told Money Management the results could assume that the 52 per cent were comfortable and felt the level of education of financial advisers was adequate.
"The reality is that a large number of planners already hold qualifications well above the minimum required," Cronin said.
"There appears to be an opportunity for planners to be more proactive in demonstrating to clients their education qualifications and the ongoing training and development they undertake, as it appears to be something that is valued and considered by Australians when looking at advice providers."
Cronin noted planners could also go as far as encouraging clients to seek out sources other than themselves to validate the advice they provide.
"It's a great step to ensure their clients and prospective clients understand that the advice is transparent and unbiased."
The survey also found 62 per cent of Australians found financial planners to be expensive and that financial institutions were biased towards their products.
Also, 22 per cent did not believe they needed a financial planner, and 23 per cent said they were kept up at night by their financial concerns.
Cronin said to overcome this sentiment, planners should clearly articulate their value proposition.
"At a macro level, there needs to be a collective approach from everyone involved in the industry, from the Government, to regulators, industry bodies, product providers, and planners — they all need to start building a positive and consistent narrative with the general public about the benefits that can be derived from financial advice," he said.
"Within that there's also an opportunity to show people financial planning can be simple and affordable, it doesn't have to be complex and expensive.
"Therefore, in order to shift that sentiment and encourage more people to seek advice, it really does require a concerted and consistent effort from everyone involved."
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
