Launched this week, the latest Roy Morgan State of the Nation report includes a detailed Spotlight on Changes to the Financial Services Market since the Financial System Inquiry (Wallis Report, 1997). There have been some dramatic changes to the market in that time, including the rapid expansion of wealth management and an increase in the number of financial products held by the average Australian. Consequently, our need for reliable, solid financial advice has grown.
Unfortunately, very few Australians trust professionals in the financial services industry, rating them consistently poorly for ‘ethics and honesty’. Not exactly the best foundation for a successful working relationship, is it?
Trust me, I’m a financial planner…
Despite Australians’ increased interaction with, and need for, financial advisors/planners, only 25% of us rate them favourably in terms of ‘ethics and honesty’. The government’s current amendments to the FoFA legislation clearly recognise the need to protect and inform consumers, but issues such as independence (and ownership), commissions and consumers’ best interests will need further scrutiny as part of the current Financial System Inquiry.
Rating of Professionals in Financial Services on ‘Ethics and Honesty’
Source: Roy Morgan Research; Annual Image of Professions Survey
Although bank managers received a higher rating (38%) than financial planners, their image has taken a hiding since 1997, when 58% of the population rated them positively for ‘ethics and honesty’. This decline is cause for concern, as a bank manager is often the highest level of finance services professional that consumers would deal with — so inspiring confidence is important.
Michele Levine, CEO, Roy Morgan Research, says:
“Roy Morgan has been tracking the image of the more traditional finance professionals such as bank managers, accountants, stock brokers and insurance brokers since 1985/1986. Stock brokers and insurance brokers rate consistently poorly, while accountants are held in higher regard.
“Considering that the level of financial literacy among the Australian population is generally quite low, it’s vital for consumers to have confidence in the advice they receive from financial planners and other industry professionals.
“The amendments to the FoFA legislation will hopefully encourage more focus on consumers’ best interests, and make financial advice more accessible, affordable and trustworthy for Australians while protecting them from commission-hungry sharks.”
We have delivered this press release via the Newsmaker media distribution service. If you would like to browse our extensive archive of detailed research findings please visit our website. To stay up-to-date with all our latest research findings you may also join our free weekly newsletter.
Roy Morgan Research
Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
P: (03) 9224 5268