As the advice industry professionalises, quality financial advice will reach more Australians. Measuring and benchmarking the industry’s progress can get lost amid the noise of new professional standards, policy reforms and business model challenges. Professional Planner has partnered with researcher Investment Trends to develop an index to track the reach of quality financial advice into the community and the difference this advice makes to Australians and society more broadly.

Michael Blomfield, chief executive, Investment Trends
Moderator: Matthew Smith, director, retail content, Conexus Financial

View Michael’s presentation slides here

Key Takeaways

  • In seeking a way to recognize and acknowledge the financial advice industry’s progress towards affordability and greater accessibility of advice to more Australians, Professional Planner has partnered with Investment Trends to design an index to track the impact of advice on individuals and society.
  • The index asks people who have an adviser and those who don’t have an adviser questions relating to their understanding of finance and investments, their confidence in making financial decisions and also measures their sense of financial security.
  • Movements in the index over time will give some insight into the impact advisers have on the literacy and financial security of the broader population.
  • At this stage the index only focuses on a set of Australians who are on average more wealth than the broader population because advised Australians at this moment tend to be substantially more wealthy than non-advised Australians. The index draws on non-advised Australians who are investors and who are also more wealthy than average Australians so the insights are comparable.
  • The first month of data shows non-advised investors have naturally higher levels of confidence than advised Australians, but that advised Australians have experienced a greater sense of security since volatility has been prevalent in financial markets. Professional Planner will continue to track and report on movements in this index.

Take the QUIZ to earn your CPD points

Question 1
* Blomfield describes the handling of relevant findings in the advice index as what?
Question 2
* According to Blomfield the impact of advice…
Question 3
* The early findings of the index indicate ‘what’ in the sense of financial security between non-advised and advised Australians?
Question 4
* What else does Blomfield believe can impacts consumers’ sense of financial confidence?
Question 5
* Investment Trends has linked up with which publication to create the impact of advice index?

Share This Article