RC fall-out continues to drag on adviser trust
Public trust in financial planners and the banks is continuing to be crippled by the fall-out from the Royal Commission, according to new research from Investment Trends.
The research, released this week, has revealed that when asked to rate their level of trust, the average Australian gave financial planners and banks the same rating of 4.8 out of 10 – a level similar to that recorded by the same survey a year earlier.
Commenting on the results, Investment Trends senior analyst, King Loong Choi said consumer trust in financial planners and the banks remained at all-time lows and were hovering in the ‘distrust’ zone.
However, he noted that while confidence in the financial advice industry remained low, Australians were optimistic that changes were occurring for the better with 76% of respondents expecting that regulatory changes would bring about positive and tangible improvements for the industry.
The Investment Trends research suggested that with advisers on the back foot, many Australians were turning elsewhere for information and guidance including the use of online tools to help them in making superannuation, insurance and investment decisions.
“The demand for digital self-help advice tools reflects Australians’ growing range of unmet advice needs, which centre around strategic advice, buying property and post-retirement issues,” Choi said.
“While there is healthy appetite for online advice tools, converting interest into actual usage will require these tools to satisfy a core set of demands. For instance, non-advised Australians strongly prefer tools that blend digital engagement with human assistance, with the younger cohort being most open to receiving human support when using online tools,” he said.
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
