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Forecasting Research

September 2010

Problem:

Following proposed Future of Financial Advice Reforms (FoFA) (being remuneration, fiduciary duty, opt-in and intra-fund advice), the Association of Financial Advisers (AFA) commissioned CoreData in September 2010 to undertake financial adviser research to better understand how these reforms might affect the financial planning professionals, clients and the industry as a whole.

The primary focus of the research was to understand the impact of regulatory change on financial adviser sentiment and financial planning practices, adviser perceptions of the role of professional associations and dealer groups, and the various client segments advisers are servicing.

The research identified potential threats to the industry such as the FoFA Reforms and the GFC, to gauge their implications for advisers, their clients and their businesses. Moreover, the research sought to profile Australian financial advisers, and project the future of their role, services and clients needs, as well as their propensity to leave the industry in the short term as a result of prevalent threats..

Methodology:

CoreData conducted quantitative online research of Australian advisers between 16 August and 3 September 2010, sourcing 16,000 advisers from its proprietary nationwide database. Respondents were also recruited from the Association of Financial Advisers (AFA) and NAB databases with 1343 valid respondents being analysed based on sector and adviser type.

Nearly a third of respondents were composed of AFA respondents with the remaining two thirds being industry respondents. The four key advisor types analysed were practice principals, independent financial advisers, tied financial advisers and paraplanners. This segmentation provided multiple perspectives across financial planning advisers which helped to holistically canvas their industry concerns.


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