Dimensional Fund Advisors, US-based director of global financial adviser services, Dan Wheeler, said a global trend in the growth of market knowledge and education by investors had led to increased demand for investment advice, rather than just a demand for product. Wheeler said the trend began in the US in the 1970s and was now being replicated in Australia and other countries.

In Australia, government legislation and the corporate regulator's willingness to strictly police licensing, client information, and disclosure and commission practices issues had created a more positive environment for a growing trend of fee-only advisers, he said. Australia led Europe and the UK in its evolution toward fee-only, but still had a way to go to catch up with the US, he said.

Investors should not forget that big dealer groups were in the business of selling product not giving advice, he said. "The sad part of it is that they position themselves in the eyes of many investors as a source of investment advice and that is so far off the mark", he said.

"It's not that they are necessarily unethical or bad people, it's just that the investing public needs to understand what business those folks are in. When things are good and everyone is making money and the investors are making 15 per cent and the markets are delivering 20 per cent, as long as they are getting their 15 per cent, then no questions are asked".

He said it was only when markets turned that questions were asked by investors, which was often too late.