Bad publicity destroys adviser sentiment
Adviser sentiment has taken a severe beating across several measures as the financial advice profession is mired in negative publicity.
That is the assessment of the Zurich Risk Adviser Sentiment December 2014 index results, which found adviser sentiment plunged to its lowest level in two and a half years on several counts.
These include the regulatory environment (down 14 per cent), long term feasibility of advice practices (down 11.6 per cent), and short term sales prospects (down 10.1 per cent).
Zurich general manager retail life and investments Philip Kewin said nearly a third of 202 advisers also signalled a drop in revenues for their businesses.
"Worryingly, one in ten of those surveyed believe their revenues have dropped by 10 per cent or more, purely as a result of the reputational damage the advice profession endured last year," he said.
Despite a Zurich whitepaper series indicating customers are happy with their advisers on indicators like trust, customer service and value for money, adviser perceptions are negative in the community, putting the future of the profession in question.
The gloomy mood comes amid the release of the Financial System Inquiry and the Australian Securities and Investments report late last year.
"In the rush to focus on the implications for adviser remuneration, most people have overlooked the fact that the ASIC report was in fact very pro-advice and very supportive of the role advisers play in delivering outcomes for their customers and the community overall,' Kewin said.
"Zurich's response therefore is to accentuate the positives, and focus on the ways we can partner with advisers to improve the quality and accessibility of advice.
AUTHOR
Malavika Santhebennur
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