High Hopes

Financial advisers have had a tough time lately but if the latest data on client attitudes are anything to go by, things might be turning around.

There’s been a considerable jump year-on-year in the proportion of clients who say they’re not considering ending their relationship with their adviser, suggesting that despite market jitters, an increasing number of clients are edging towards sticking it out with their adviser.

Seven in 10 people who have some sort of relationship with a financial adviser say they are unlikely or very unlikely to consider not using the adviser any more (70.1%), up from just over half in 2010 (55.0%).

The massive jump is a reflection of a big increase in the proportion of clients who say they are ‘very unlikely’ to consider cutting ties, up to 27.0% from 14.8% and a decrease in the proportion of clients who are ‘very likely’ to do so, down to 9.0% from 28.7% last year.

The findings are the results of CoreData’s latest report into attitudes towards financial planners, in which 750 people were surveyed.

How likely are you to consider not using an adviser anymore?

The Financial Planner Affection research assessed the impact that the continuing uncertainty and regulatory reform are having on sentiment towards the financial planning industry and clearly show shifts in consumer sentiment.

Given the Government’s Future of Financial Advice (FoFA) reforms, which are widely expected to reshape the environment for financial planners, increasing competition and a slump in consumer confidence that is driving risk-averse behaviour, it has never been more important to understand consumer perceptions of advisers and what makes them tick.

The research also identified an increase in the proportion of people who were interested in seeking out a financial adviser in the near future with just under half of those without a current  advice relationship looking to seek out an adviser within the year (46.4%), compared with just over a third in the prior year (34.9%).

It seems that the dust has settled post GFC and clients are increasingly seeing the value in sticking with their adviser through good times and bad.

*CoreData’s Financial Planner Affection Report is available for purchase. Please contact CoreData on 02 9376 9600.