Survey finds quality of advice on super still needs improvement

ASIC today released the results of its Shadow Shopping Survey on Superannuation Advice. The purpose of the survey was to assess whether the advice given to consumers after the introduction of Super Choice complied with the law. The survey assessed 306 examples of advice given to real consumers who were recruited by Roy Morgan Research. The survey covered 259 individual advisers who were representatives of 102 Australian financial services licensees. Overall, the survey revealed a wide range in the quality of advice — from highly sophisticated advice at one end, with basic but valuable advice in the middle, through to negligent and inappropriate advice at the lower end. ‘The most positive finding was that the ‘strategic’ advice provided by advisers was generally helpful to consumers’, said ASIC Chairman, Mr Jeffrey Lucy. This advice covered issues such as asset allocation, how much to contribute to superannuation and tax advantages. ‘However, the survey found the financial advice industry still has significant work to do before the quality of advice will be consistently at a level that ASIC and consumers would regard as acceptable.’