Survey shows Aussie's trust in advisers not breaking any records
/A global investor survey by the CFA Institute shows Australia ranks sixth out of 15 major markets when it comes to trust in financial services. Just 24 per cent of Australian investors say they trust the industry, down from 31 per cent from 2018, with the average across all markets being 47 per cent.
The researchers surveyed 3,525 retail investors from 15 geographic markets, with investable assets of at least US$100,0001. The survey also includes 921 institutional investors with assets under management of at least US$50 million.
Key findings of the study include:
About 75 per cent of investors believe their financial advisers is legally obligated to act in their best interests, but just 37 per cent believe they actually do, a drop from 44 per cent in 2018
Eighty-one per cent of investors trust advice from a person over robo-advice (six per cent), which is higher than the global average of 73 per cent
Over a third of investors say they are not as eager to hand over personal information online than they were three years ago
Over 80 per cent of advised investors believe they have an opportunity to profit by investing in capital markets, while 57 per cent of those without an adviser said the same
The findings of the Royal Commission and associated media coverage didn’t sway advisers in terms of how and where they seek financial advice
Forty per cent of investors believe the Royal Commission will have a positive effect on professional standards
Almost two-thirds of those retail investors who have an adviser want to access new investment products, versus about a third of retail investors without an adviser
The report is comprehensive and available for download at the CFA Institute’s website.
