Adviser-client relationships not swayed by royal commission findings
About 56% of consumers feel the revelations of the royal commission have had no impact on the way they interact with their financial adviser.
Honesty and trustworthiness are the top attributes consumers and small business owners look for in a financial adviser, according to new research released by MetLife Australia.
Not only do clients who trust their advisers say the royal commission will have no impact on their advice relationship, but 38% of small to medium enterprises (SMEs) and 20 % of advised consumers say the commission will make them even more likely to visit their adviser.
“What’s clear from these numbers is that the Royal Commission has put the spotlight on the need for quality advice and its enduring appeal,” MetLife Australia head of retail sales Matt Lippiatt said.
“Given that as many as four in 10 consumers and SMEs have been with their adviser for more than five years, it seems that many clients have established a high level of trust and confidence in their adviser’s integrity and abilities.”
Overall, the MetLife research data shows that Australians are reasonably happy with the service they’re receiving from their financial adviser, with 61 per cent of consumers and 59 per cent of SMEs rating their adviser ‘excellent’ or ‘very good’. Just 13 per cent of consumers and 11 per cent of SMEs rate their adviser ‘poor’ or ‘fair’.
“We’ve seen a lot of negativity about financial advice in the media, but consumers and SMEs are both telling us that there are good advisers who are doing a great job,” Lippiatt said.
The report was based on a survey of consumers who currently use an adviser, consumers considering seeing an adviser in the next two years, and SMEs with up to 20 employees.