The latest Australian Securities and Investments Commission (ASIC) report into financial advice has revealed SMSFs rank among the top 10 topics or issues on which individuals would like to receive advice.
ASIC’s “Report 627 Financial Advice: What consumers really think” showed 15 per cent of all Australians surveyed named SMSFs as something they wanted advice on. Overall the topic was ranked seventh in importance, with the top three issues where people sought advice being investments (45 per cent), retirement income planning (37 per cent) and growing their superannuation (31 per cent).
The study showed SMSF advice had higher demand among Australians who recently received financial advice, with the topic ranking fourth in this group.
Overall the study identified a positive attitude toward advice, with 41 per cent of respondents saying they intended to get personal financial advice in the future.
“The good news for industry is that consumers who had recently received financial advice had more positive attitudes towards financial advisers than those who had not,” ASIC commissioner Danielle Press said.
“Moreover, even limited knowledge of industry reforms such as FOFA (Future of Financial Advice) appears to have improved consumer attitudes towards the sector. So, it is even more important for industry to get on board with the reforms.”
While sentiment toward receiving financial advice was positive, the report found Australians still thought there were impediments that would ultimately prevent them seeking the advice they might need.
To that end the top three elements all Australians saw as barriers to seeking financial advice were it is too expensive (35 per cent), the perception their financial circumstances are too small (29 per cent) and the desire to manage their own finances (26 per cent).
A further issue the regulator’s research uncovered was the use of robo or automated advice was very low, with only 1 per cent of survey participants using this type of service.
“Financial advisers have an important role to play in helping consumers improve their financial position and there is a real opportunity for the advice industry to rebuild that trust by reorienting itself and putting consumers at the heart of its services,” Press said.
The survey used as the foundation for Report 627 was conducted online and analysed the responses of 2545 individuals weighted to ensure it was representative of the Australian population.
Key words:
Financial advice, investments, retirement income planning, superannuation
