More access to financial planners needed

Nick Sherry

The Federal Government’s review of fees and charges in the superannuation system should ensure that the gap between supply and demand for financial advisers does not widen, according to the Investment and Financial Services Association (IFSA).

IFSA chief executive officer Richard Gilbert said: “IFSA welcomes Superannuation Minister [Nick Sherry’s] review of the structure and cost of the superannuation system, however, despite volatile markets, demand for financial planners remains strong and consideration should be given to ensure that access and choice with regard to financial advice is not put at risk.”

Gilbert said people were comfortable with payment for financial advice through commissions, with nearly seven out of 10 people satisfied with their commission arrangements, and 98 per cent of those seeing a financial adviser satisfied with the experience.

“These latest findings indicate that the current regulatory system is working well for the vast majority of Australian investors,” said Gilbert.

“We should ensure that further reforms impacting financial advice do not inhibit access to affordable advice and actually increases the supply of advice. Meeting the demand for quality financial advice is an essential component of the Government’s national savings agenda.”

There are approximately 18,000 financial planners in Australia and data collected by IFSA shows that employment advertisements for financial planners are continually high.

“Australia currently has a poor record on national savings. Financial planners play a critical role in providing quality advice, [and] encouraging Australians to save,” said Gilbert.