Survey confirms adviser dissatisfaction
The Financial Planning Association has followed up on consumers' views following the negative report released early in 2003 by ASIC and the Australian Consumers' Association. In May, the FPA commissioned RMIT to do a telephone survey which showed that the percentage of consumers who are “dissatisfied” with financial advice has risen from 15 per cent to 21 per cent since 2002. The number of people who said they were “very satisfied” or “satisfied” in May 2003 stood at 79 per cent – a 6 per cent decrease on 2002.
The May survey also found that 39 per cent of respondents had sought advice from a financial planner, up 5 per cent. Those seeking advice from bank managers, credit unions and building societies halved to 14 per cent between February 2000 and May 2003. Using family and friends as a source of advice has remained fairly steady, falling only marginally to 17.5 per cent in 2003.
The 2003 survey showed that men are more likely to seek advice from a financial planner than women. A high proportion of respondents believed the advice they received was free, suggesting they still do not fully understand the fee disclosure required of planners.