ASIC report shows growing demand for financial advice
New research from ASIC (Australian Securities and Investments Commission) has revealed 41 per cent of Australians intend to get financial advice in the future. This supports the findings of research conducted by Investment Trends in September 2018 that showed 51 per cent of Australians have an unmet advice need.
The new research also confirms that more Australians are receiving advice. Previously 20 per cent stated they had received financial advice in the past, and the new findings reveal the number has risen significantly to 27 per cent.
The ASIC report titled Financial Advice: What consumers really think provides a snapshot of the motivators and barriers to seeking financial advice, as well as consumer attitudes towards financial planners.
The Financial Planning Association of Australia (FPA) welcomes the findings and is encouraged that this independent report confirms the FPA’s belief that those consumers who had received advice had a more positive view of the financial planning profession. According to the research, those consumers are four times more likely to say they had “a great deal” of confidence in advisers.
Dante De Gori CFP®, CEO of the FPA, said: “ASIC’s research found that 41 per cent of Australians intend to get financial advice in the future. This supports the Investment Trends findings and the results of the FPA’s recent Gifts that Give research that found 57 per cent of Australians would like the gift of time with a financial planner, indicating a strong overall positive desire for professional help to create a financial plan.
“Importantly, those consumers who have recently received financial advice had more positive attitudes towards financial planners than those who had not.
“It’s also encouraging to know that 79 per cent of survey respondents agreed that ‘financial advisers have expertise in financial matters I do not have’. Consumers want to receive advice on investments (45%), retirement income planning (37%), cash flow management (22%), and debt management (14%).
“We acknowledge that the research indicates that barriers such as the costs of financial advice remain an issue for the financial planning profession. The FPA remains committed to working cooperatively with financial planners, the government and the industry more broadly to support the growth of our profession for the benefit of consumers,” said Mr De Gori.