Advisers give thumbs up to FSRA disclosure guidelines

SUPPORT for disclosure obligations under the Financial Services Reform Act (FSRA) is high, according to aSecurities Institutesurvey, which shows only 13 per cent of advisers think they are too onerous and 11 per cent think they should be more strict.

According to the survey of 171 financial advisers, 89 per cent of firms are already following FSRA disclosure obligations and 95 per cent of respondents claim they understand their obligations under the new regulatory regime.

The survey shows 71 per cent of respondents are more focused on disclosure in recent times, with 43 per cent having increased their focus a lot and 29 per cent a little.

“It reveals that the industry accepts the wake up call about past failures and is improving advisers’ practical skills, particularly in the areas of disclosure and communication,”Securities Institutechief executive Brian Salter says.

The survey also discovered advisers are split on the perceived impact disclosure will have on consumers’ choice of products, with 43 per cent saying it will have a minimal impact, 40 per cent a reasonable impact and 17 per cent believing it will have a significant impact.

The survey found that 26 per cent of financial planners take responsibility for consumers’ lack of awareness of the costs of financial planning, with 69 per cent believing confusion over fees was due to a combination of advisers failing to explain and clients failing to ask.

The Securities Institute survey also found that 76 per cent of advisers believed the FSRA will provide sufficient protection for consumers.