The survey is conducted by Lifeplan and the International Centre for Financial Services every six months and looks at the perception of investors towards their financial adviser’s trust and reliability, technical ability and investment performance.
The April 2014 survey results indicated improvement across all three of these drivers of perception, with the index rising to 74.5 per cent, up from 72.3 per cent in October 2013.
The greatest increase in all three drivers of perception was among respondents in the 30-44 age bracket. However, investors in the 45-60 year age group remain the most satisfied with the quality of advice they receive.
The results showed the perception of performance had the largest increase, rising 4.13 per cent, followed by technical ability increasing 2.9 per cent and trust and reliability with a 2.2 per cent rise.
Head of Lifeplan Matt Walsh said the improvement in perception is the result of better client-adviser relationships.
“Not enough has changed in the domestic and global landscape since the October 2013 survey to move the index this much, but the quality of advice seems to have improved when benchmarked against the capital markets,” said Mr Walsh.
“While the domestic equity market index, the ASX200, continued to show gains for the past year of eight per cent, it has not reached the 2007 levels.”
Mr Walsh said this indicates financial advisers are providing value-added services.
He said the results should reinforce the government’s decision to pause any wind back of reforms.
“Finally, after years of reforms and post-GFC recovery we have record levels of satisfaction with financial advisers, and that should be celebrated and built upon,” said Mr Walsh.
“A wind back could raise the ogre of commissions again, which can work against the public’s confidence in financial advisers.”
