Over the next few weeks we will be posting a series of educational blogs to answer your questions about what Financial Advisers do and how they add value to their clients.We interviewed our financial adviser Ciaran Davis and have included his excellent feedback in the articles.
You Don't Know What you Don't Know
The Financial Services industry has come under intense scrutiny in Australia in the past few years resulting in changes to legislation and occasioning increased standards of compliance.
In 2010 The AFA (Association of Financial Advisers LTD) published a white paper - Back to Basics - outlining the results of their intensive research into the role of advisers and the nature of their services.
According to the white paper findings, Australians fall into two categories: the advised and the unadvised.
“A common misconception among the unadvised is that the benefits of having a financial adviser are purely financial. The truth is that in a complex industry such as this, when you don't know what you don't know you're behind the eightball from the start and that lack of knowledge could have far reaching consequences." Mortgage Choice at Sutherland financial adviser Ciaran Davis.
The AFA regard financial advisors as ‘choice architects’ rather than technicians and their research suggests that the role is much more complex and the benefits far more comprehensive than most people think.
Indeed the white paper states that a financial adviser should be:
• the provider of strategic advice – coaching and guiding clients through life’s ups and downs and helping them to make the ‘big’ decisions.
• the provider of tactical advice – offering expertise on insurance, investments and Super.
• the implementer of both the above – making your plans actually happen. Implement your financial plan, make adjustments where necessary and keep you focused on your financial goals.
The research offers compelling evidence to suggest that those consumers who used financial advisers are happier with their investments, wealthier, more engaged with their finances and feel they have control over their financial future.
“The research shows that 73.1 % of those currently unadvised will likely consider using an adviser in the future so people are beginning to realise the value of seeking expert help with financial health. In fact the survey found that among those consumers who are advised, their financial adviser was rated third in line behind specialist doctors and dentist for the most trusted person giving professional advice. Essentially the research proves that clients who seek advice are significantly happier with their investments, better planned and enjoy a relationship with a financial ‘coach’ who helps with major life decisions, provides peace of mind, administers their financial affairs and assists in facilitating a path to financial independence. This is what we offer our clients at Mortgage Choice at Sutherland. It's what makes us different from other mortgage brokers out there. Our clients have trusted Peter Johnson for years and they know he’s invested in this new arm to his business because he takes very seriously his role in assisting valued clients and friends with their financial wellbeing.”
Ciaran can be contacted at Mortgage Choice at Sutherland on 029521 1611 or via email email@example.com
Next week: more comparisons between the advised and the unadvised as found by the AFA research.