Financial advice

Jul 15, 2014

Q. Have you ever used a financial planner or received financial advice from a bank? 

 

Total

 

Income less than $600pw

Income $600-1,000pw

Income $1,00-1,600pw

Income $1,600+

pw

 

Aged 18-34

Aged 35-54

Aged 55+

Yes

29%

24%

29%

36%

32%

16%

32%

42%

No

71%

76%

71%

64%

68%

84%

68%

58%

 29% say they have used a financial planner or received financial advice from a bank.

Those most likely to have received advice or used a planner were aged 55+ (42%) and those earning $1,000-1,600pw (36%).

Opinion of financial advice

Jul 15, 2014

Q. Overall, did you receive good or bad advice? 

 

Total

 

Income less than $600pw

Income $600-1,000pw

Income $1,00-1,600pw

Income $1,600+

pw

 

Aged 18-34

Aged 35-54

Aged 55+

Total good

65%

58%

61%

79%

57%

 

74%

64%

62%

Total bad

10%

21%

13%

3%

9%

 

6%

9%

13%

Very good

17%

11%

34%

16%

11%

12%

11%

26%

Good

48%

47%

27%

63%

46%

62%

53%

36%

Neither good nor bad

25%

21%

24%

17%

33%

17%

27%

24%

Bad

6%

8%

11%

2%

5%

4%

5%

7%

Very bad

4%

13%

2%

1%

4%

2%

4%

6%

Don’t know

1%

2%

1%

1%

2%

1%

65% of those who have received financial advice say it was good advice and 10% say they received bad advice.

Those most likely to think they received bad advice were aged 55+ (13%) and incomes under $600pw (21%)

What lessons can we learn from Trio?

Jun 5, 2012


Matthew Linden warns people with self managed super to do their homework because  — unlike members of retail and industry funds — they have no safety net.

With almost $200 million lost after the collapse of fraudulent investment house Trio Capital,  questions continue to be asked about many aspects of Australia’s biggest super fund scandal. One such question is the lack of compensation for fraud for self managed superannuation funds.

A summary of the report and ramifications

Trio Capital was a sophisticated fraud which roped in clients with the promise of low risk investment for high returns. About 6000 people signed up to invest only to have it wiped out six years later.

Matthew Linden, chief policy adviser for Industry Super Network, believes there were warning signs with Trio which went unheeded. He tells 3Q that financial advisers, acting on large commissions, failed to investigate the fund before recommending the investment. With the introduction of new legislation starting this July which prevents future commissions to financial advisers, he believes the incentives which have driven poor quality advice will be largely prohibited.

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