Money Management Soft Dollar Code Poll

Below are the full results of Money Management’s exclusive poll on attitudes to the soft dollar code released by the Financial Planning Association and the Investment and Financial Services Association.

Soft dollar code poll results — November 2004

(n=201)

1. Do you believe the soft dollar code is...

a) Not a tough enough response by the FPA 19.0%

b) An appropriate response by the FPA 36.5%

c) An overreaction by the FPA 39.5%

d) Undecided 5.0%

2. What impact will the soft dollar code have on the public perception of financial planners?

a) Significantly improve public perception 5.0%

b) Somewhat improve public perception 39.0%

c) Have no impact on public perception 46.0%

d) Somewhat worsen public perception 9.0%

e) Significantly worsen public perception 1.0%

3. What impact will the code have on the quality and transparency of advice received by consumers?

a) Significantly improve advice 3.5%

b) Somewhat improve advice 37.4%

c) Have no impact on advice 55.1%

d) Somewhat worsen advice 4.0%

e) Significantly worsen advice 0.0%

4. What impact will the soft dollar code have on your business?

a) Significantly increase compliance requirements 12.8%

b) Somewhat increase compliance requirements 38.8%

c) Have no impact on compliance requirements 48.0%

d) Somewhat lessen compliance requirements 0.5%

e) Significantly lessen compliance requirements 0.0%

5. How will the code affect the structure of the remuneration you receive or pay out to others?

a) Significantly change the structure of payments 5.6%

b) Somewhat change the structure of payments 13.2%

c) Have no impact on the structure of payments 72.1%

d) Undecided 9.1%

6. What is your occupation?

a) Financial planner (including paraplanner) 55.1%

b) Fund manager 11.6%

c) Platform provider 7.6%

d) Other 25.8%

7. If you are a financial planner, are you...

a) A sole practitioner 9.7%

b) Part of an independent dealer group 52.4%

c) Part of an institutionally owned (or part-owned) dealer group 34.0%

d) Other 3.9%

Response By Occupation

[FP = Financial planner; FM = Fund manager; PP = Platform provider; O = Other]

1. Do you believe the soft dollar code is...

a) Not a tough enough response by the FPA 8.3% (FP); 13.0 (FM); 26.7 (PP); 41.2 (O)

b) An appropriate response by the FPA 36.7% (FP); 43.5 (FM); 33.3 (PP); 19.6 (O)

c) An overreaction by the FPA 52.3% (FP); 34.8 (FM); 26.7 (PP); 5.9 (O)

d) Undecided 2.8% (FP); 8.7 (FM); 13.3 (PP); 5.9 (O)

2. What impact will the soft dollar code have on the public perception of financial planners?

a) Significantly improve public perception 6.4% (FP); 4.3 (FM); 2.0 (O)

b) Somewhat improve public perception 30.3% (FP); 39.1 (FM); 46.7 (PP); 54.9 (O)

c) Have no impact on public perception 52.3% (FP); 47.8 (FM); 40.0 (PP); 35.3 (O)

d) Somewhat worsen public perception 11.0% (FP); 8.7 (FM); 13.3 (PP); 3.9 (O)

e) Significantly worsen public perception 3.9% (O)

3. What impact will the code have on the quality and transparency of advice received by consumers?

a) Significantly improve advice 4.6% (FP); 2.0 (O)

b) Somewhat improve advice 32.4% (FP); 18.2 (FM); 53.3 (PP); 51.0 (O)

c) Have no impact on advice 58.3% (FP); 81.8 (FM); 46.7 (PP); 5.9 (O)

d) Somewhat worsen advice 4.6% (FP); 5.9 (O)

e) Significantly worsen advice

4. What impact will the soft dollar code have on your business?

a) Significantly increase compliance requirements 11.9% (FP); 13.0 (FM); 28.6 (PP); 10.2 (O)

b) Somewhat increase compliance requirements 36.7% (FP); 47.8 (FM); 50.0 (PP); 36.7 (O)

c) Have no impact on compliance requirements 51.4% (FP); 34.8 (FM); 21.4 (PP); 53.1 (O)

d) Somewhat lessen compliance requirements 4.3 (FM)

e) Significantly lessen compliance requirements no results

5. How will the code affect the structure of the remuneration you receive or pay out to others?

a) Significantly change the structure of payments 0.9% (FP); 17.4 (FM); 26.7 (PP); 4.0 (O)

b) Somewhat change the structure of payments 10.1% (FP); 21.7 (FM); 40.0 (PP); 8.0 (O)

c) Have no impact on the structure of payments 83.5% (FP); 47.8 (FM); 26.7 (PP); 72.0 (O)

d) Undecided 5.5 % (FP); 13.0 (FM); 6.7 (PP); 16.0 (O)

Response By Area of Financial Planning

[SP = Sole practitioner; ID = Independent dealer; IO = Institutionally owned; O = Other]

1. Do you believe the soft dollar code is...

a) Not a tough enough response by the FPA 30.0 (SP); 6.6 (ID); 2.9 (IO)

b) An appropriate response by the FPA 30.0 (SP); 37.0 (ID); 37.1 (IO); 75.0 (O)

c) An overreaction by the FPA 20.0 (SP); 57.4 (ID); 57.1 (IO); 25.0 (O)

d) Undecided 20.0 (SP); 2.9 (IO)

2. What impact will the soft dollar code have on the public perception of financial planners?

a) Significantly improve public perception 3.7% (ID); 11.4 (IO)

b) Somewhat improve public perception 30.0% (SP); 35.2 (ID); 22.9 (IO); 50.0 (O)

c) Have no impact on public perception 70.0% (SP); 48.1 (ID); 57.1 (IO); 50.0 (O)

d) Somewhat worsen public perception 13.0% (ID); 8.6 (IO)

e) Significantly worsen public perception no results

3. What impact will the code have on the quality and transparency of advice received by consumers?

a) Significantly improve advice 7.5% (ID); 2.9 (IO)

b) Somewhat improve advice 50.0% (SP); 35.8 (ID); 17.1 (IO); 50.0 (O)

c) Have no impact on advice 50.0% (SP); 49.1 (ID); 80.0 (IO); 50.0 (O)

d) Somewhat worsen advice 7.5% (ID)

e) Significantly worsen advice no results

4. What impact will the soft dollar code have on your business?

a) Significantly increase compliance requirements 10.0% (SP); 7.4 (ID); 14.3 (IO); 25.0 (O)

b) Somewhat increase compliance requirements 30.0% (SP); 33.3 (ID); 54.4 (IO); 25.0 (O)

c) Have no impact on compliance requirements 60.0 (SP); 59.3 (ID); 34.3 (IO); 50.0 (O)

d) Somewhat lessen compliance requirements no results

e) Significantly lessen compliance requirements no results

5. How will the code affect the structure of the remuneration you receive or pay out to others?

a) Significantly change the structure of payments 1.9% (ID)

b) Somewhat change the structure of payments 11.1% (ID); 11.4 (IO)

c) Have no impact on the structure of payments 100.0% (SP); 77.8 (ID); 85.7 (IO); 100.0 (O)

d) Undecided 9.3% (ID); 2.9 (IO)