ACA shadow shoppers got it wrong - survey
The findings of a new survey have contradicted the infamous ‘shadow shopper’ report released in February 2003 by the Australian Consumers' Association (ACA) and the Australian Securities and Investments Commission, which condemned the quality of advice provided by financial planners.
The 2004 Investor Experience Report, compiled jointly by Credit Suisse Asset Management and research house Investment Trends, involved clients from some of the country's largest dealer groups.
The findings, based on the responses of 576 clients of seven financial planning businesses found 88 per cent of clients rated their planner as "good or "very good" overall. Only 2 per cent of client rated their planner as "poor" overall.
Three quarters of clients do not see a need for addition regulation, and while a surprising number (43 per cent) actually read Statements of Advice (SOA), only 11 per cent think increased paperwork is adding any value.
Asked to name the single most important criteria for selecting a planner, only one per cent nominated pricing of services, and three per cent said qualifications of planners.
Credit Suisse Asset Management head of retail business Chris Larsen says the ACA report was misdirected.
“The ACA report painted planners in a pretty terrible light, and using a criteria that clients really don't dwell on,” Larsen says.
All participating dealer groups agree that further collaborative efforts are needed to raise the profile of financial planners in the eyes of consumers.
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