A large number of clients are using their financial planners for ideas and advice but are ultimately making their own investment decisions, new findings from CoreData have revealed.
Almost 42 per cent of clients who used an adviser from time to time and more than 33 per cent of clients who had a dedicated adviser said they made their own investment decisions but did ask their planner for ideas and advice first.
“Advisers might think they make a lot of choices on behalf of clients but there are a lot of clients out there making their own decisions,” CoreData partner Craig Phillips told InvestorDaily.
Almost 6 per cent who used an adviser from time to time said advisers were their exclusive source of information, which was significantly different to the 25.3 per cent of clients with a dedicated adviser who gave the same response.
“People with a dedicated adviser are much more prone to using their adviser for advice, whereas people who don’t have a dedicated adviser, or don’t have an adviser at all, are more often consulting family and friends and people they deem capable but who are not necessarily licensed to give financial advice,” Phillips said.
More than 44 per cent who used an adviser from time to time and more than 33 per cent who had a dedicated adviser said they partially relied on their adviser while doing their own work and consulting others.
Phillips said most advisers would be ecstatic that clients are doing their own investigations.
“It can only be healthy for the industry as it enables clients to question advisers’ recommendations and advisers to question clients’ decisions,” he said.
