Clients are looking for trust

The reason why three out of five Australians currently don’t seek financial advice is not due to the cost of advice, as Industry Superannuation Network (ISN) would have us believe. It’s because it’s confusing, difficult and risky for consumers to find a financial planner they can genuinely trust.

Indeed, when the entire industry is tarred with the same brush as rogue planners, some consumers are led to conclude that there is, in fact, no such thing as a trustworthy and reliable financial planner. In their hearts and minds, the whole industry is written off and, as a result, getting help to plan their financial future is left firmly in the“too hard basket”.

And that’s just not good enough. Government, regulators, industry bodies and service providers all agree that this is an unacceptable state of affairs. That’s why we have the Future of Financial Advice reforms, MoneySmart, and a plethora of other initiatives designed to support consumers to obtain the advice they need in an informed and transparent way.

WHO CAN CONSUMERS TURN TO?

Most Australians need a well-structured financial plan encompassing superannuation, savings, house, investments, and the protection of these assets with adequate insurance. Consumers benefit most when their entire array of financial needs is considered holistically, rather than in isolation or piecemeal. The only sector that considers the clients’ needs in this way is the professional financial advice community.

The reality is that there are many thousands of professional financial planners in Australia. They are honest, they care, they love their clients and they are deeply committed to their work, and indeed, their profession.

To these financial planners, advice is not just a transaction, a solution is not just a product, and clients are not just voices on the other end of the phone.

These financial planners are qualified and educated well beyond the minimum standards required by law, they don’t need legislation to put their clients’ interests first, and they have the experience and skill to uncover client needs, develop previously unarticulated goals and re-balance plans over the years as their clients’ lives evolve.

These are the trustworthy and reliable advisers that consumers are looking for.

Australia is blessed. We have more than 5800 Certified Financial Planner (CFP) practitioners – more per capita than the US. These financial planners work to the highest professional and ethical standards recognised around the world and are all members of the Financial Planning Association (FPA). They, and hundreds of their peers who are on the path to achieving the CFP qualification, are Australia’s trusted advisers.

TIME FOR ACTION

It’s time to shine a bright light on our professional financial planning community. This month, the FPA will launch a campaign to raise awareness among all Australians of the importance of having a qualified professional to manage their finances. The communication positions the FPA brand as a mark of trust that denotes a financial planner who works to the highest professional standards.

This campaign will take the first steps to changing the hearts and minds of wary and cynical consumers.

A recent study from an independent research company for the FPA showed that consumers’ perceptions of the financial planning industry improved by 18 per cent after seeing communications highlighting FPA financial planners as qualified and aligned with other recognised professions.

Connecting consumers who are looking for advice they can trust with Australia’s professional financial planning community is not just another industry advertising ploy, but an essential initiative that will ultimately provide peace of mind to thousands of consumers and make a significant contribution to our national interest. Watch this space.

Mark Rantall is chief executive officer of the Financial Planning Association.