Consumers mystified about planners’ job description



Beyond what they see in media headlines, many consumers have no idea what a financial planner does, a wealth management veteran believes.
While some know planners work in the investment realm, many potential customers are bemused about what precisely planners can offer them, Wealth Know How's general manager, Fiona Parker, said.
"Consumers are telling us they want the role of planners demystified so they can better understand how even the basic problems and investment strategies will be addressed," she said.
Until they have that understanding, they are unwilling to make the "first call" to engage with a planner, she added.
"It is clear from recent research by the Financial Services Council that people who get financial advice get real value from it so it is important that it is made more accessible," she said.
"Taking into account the cost of advice, an individual who has had financial advice generally saves $1590 each year more than a similar individual without a financial adviser."
She said potential customers would benefit from education campaigns to clarify the practical role of planners.
Recommended for you
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.