Confirmation — planning has been hurt by negative reporting
A new survey has revealed the degree to which negative publicity has impacted the financial planning industry.
The RaboDirect Financial Health Barometer survey has revealed a dramatic decline in perceptions of financial planning between 2014-15 — the period during which newspaper and television reports critically traversed issues within Commonwealth Financial Planning, Macquarie Group, and National Australia Bank.
The survey data covers a five-year period during which it noted that there had only been a slight shift in the number of people who distrust financial advice.
But it went on to note that "when looking at yearly comparisons, there was a substantial shift between 2014 and 2015. In 2014, 40 per cent of people said that they trusted financial advice, but in 2015, this figure fell to 29 per cent".
"When comparing different generations, although more Gen Ys trust financial advice, there has been a bigger downward trend year-on-year in this group compared to other generations," the survey analysis said.
"In 2014, 49 per cent of Gen Y agreed that they trusted advice provided by planners or advisers. In 2015, this figure had dropped ten percentage points to 39 per cent."
It said that for Gen X in 2014 this figure was 41 per cent, dropping to 26 per cent in 2015, a change of fifteen percentage points and for Baby Boomers in 2014, the number was 31 per cent, falling to 23 per cent in 2015, a difference of eight percentage points.
Recommended for you
Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand.
The third quarter of 2024 saw the first positive increase in adviser numbers for 12 months, according to the latest quarterly Musical Chairs report, with new entrants overwhelmingly choosing to join privately owned firms.
As more advisers review their fee structures, Business Health has shared six steps to calculating the price to deliver financial advice services in a profitable yet suitable way.
ASIC’s Sarah Court has confirmed the regulator is carrying out systematic work on providers of unlicensed advice but admits it is a case of “whack-a-mole” when it comes to disciplining them.