Apogee Financial Planning has been named research house CoreData’s Advisory Group of the Year for 2012, the third time that the licensee has won this award in the past five years.
CoreData’s financial planning shadow shop, which forms the basis for determining a winner, also revealed a decline in the likelihood of embattled consumers taking on a financial planner.
The research found that those consumers who did take the plunge are placing a heightened focus on the value of the planner’s services, consistent with financial pressure on many households and a greater desire for utility post-global financial crisis.
“The findings suggest it is really important that planners are able to demonstrate the quantifiable or tangible benefits of seeking advice, given the cost to would-be clients,” said Kristen Turnbull, head of advice wealth and super at CoreData.
“Often it is the intangible benefits – such as peace of mind and certainty – that are most valued by those clients who have a dedicated financial planner. However, in the current environment prospects are heavily focused on how much the service costs and what they get in return.”
What is apogee?
Apogee Financial Planning was deemed to be the licensee with the strongest ability to acquire prospective clients, based on the ratings of consumers who were in the market for financial advice.
The apogee is the point in the orbit of an object, such as a satellite orbiting the earth, which is at the greatest distance from the center of the object it is orbiting.
However, Fiona Navarro, general manager of the MLC-aligned dealer group, attributed the licensee’s success to the depth of its service rather than physics and a catchy name.
“This award is a reflection of the quality and client focus of the businesses in the Apogee network,” she said. “We have been working hard over a number of years removing conflict and finding more opportunities to add value through advice and deeper client conversations.
“In 2013, we’re continuing to build an integrated advice offer for the more than 140 businesses in our group, most of which also offer accounting, general insurance or mortgage broking services in addition to financial advice.
Highly commended
MLC/Garvan Financial Planning and AMP Financial Planning both received a highly commended accolade.
For the first time in three years, ability to enthuse is no longer the most highly correlated factor with customer commitment to proceed to take-up advice. This has been overtaken by value of the planner’s services.
CoreData found softer engagement measures remain among the key drivers of customer commitment this year, with ability to enthuse the second biggest driver in 2012, followed by last year’s number-two driver – ability to influence. Recommendations suited to client needs and ability to build relationships round out the top five in 2012.
MLC advice and marketing executive general manager, Richard Nunn, said CoreData’s research shows customers value honesty and transparency above all else in an advice relationship.
“This is a real strength for MLC and its licensees as we were the first to call for more transparency, removal of conflicted payments and a shift away from commissions on super and investments towards advice fees back in 2005.”
How they core the data
The CoreData Financial Planning Shadow Shop Report details financial planners’ ability to engage real buyers of investment, superannuation and insurance advice, as well as deliver services within the framework set out by all relevant legislation. This is measured using the ACQUIRE Index, which incorporates seven benchmark categories: assurances, compliance, quality, understanding, intention, reaction and environment.
The critical intention category of the ACQUIRE Index – a measure of customer commitment to proceed to a second meeting, choose and recommend a financial adviser – weakened slightly over the past year, following a steady recovery in 2010 and 2011.
CoreData based its findings on 319 separate mystery-shopping events across 16 of the industry’s major dealer groups from August through to November, 2012.
Aged between 40 and 60, shadow shop participants were actively seeking advice or looking to switch from their current adviser and had more than $150,000 in investable assets or in their superannuation.
