Media perception of industry tough to overcome
As non-advised people only get their perception of the industry from the media, it’s hard for the industry to reach out and change that perception, even with high client satisfaction, according to an adviser.
At a webinar hosted by the Association of Financial Advisers (AFA), Bill Webster, Tempus Wealth founding partner, said those who received advice were positive on the industry but it was tough to build beyond that.
“The reality is, about less than 15% of the public are actually advised – that 15% would be a nine-out-of 10 on the trust factor with advisers,” Webster said.
“It’s the other 85% that are non-advised and they’re only reference is the media about what our industry is about.
“If your only reference point about an industry is the media then you’re going to struggle with that trust factor."
Webster said the adviser business community was one that was caring, which was completely overlooked.
“If you go to everyone who has been advised in our industry – and most of the advisers would say the same thing – they have got 100% trust with their clients in them,” Webster said.
“We can only go to one client at a time so our job is to get more people advised, to get more people in a relationship that they feel valued, needed and they feel this person cares about them.”
A previous AFA webinar highlighted the mental health toll media reporting had taken on advisers because of how the industry was judged.
Dr Adam Fraser, who conducted research on the subject with AIA Australia, The e-lab and Deakin University, said at the time how advisers were painted in the media had significantly hurt advisers.
“What we haven’t paid enough attention too is the impact of that on people,” Fraser said.
“It’s deeply wounding and scaring for many advisers who have worked hard, who have so much meaning and purpose attached to what they do to have this unfair criticism of them out there in the market place.”
AUTHOR
Chris Dastoor
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
