Peter Kell, ASIC commissioner said that advisors focus was on product and not to help clients in strategically planning for their retirement by efficiently utilizing their financial resources.
Moreover, some customers blindly believed their advisors and do not assess the advice received.
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"The headline numbers are disappointing and the industry has to look closely at the data, which points to clear areas of improvement such as FOFA Best Interest and conflicted remuneration in particular," remarked Association of Financial Advisers (AFA) chief executive Richard Klipin.
In order to address the concern of quality of advice, the Financial Planning Association (FPA) will be hosting a series of workshops co-hosted with ASIC and the Financial Ombudsman Service (FOS).
"The FPA believes it is vital for all key stakeholders involved in shaping and regulating the financial planning profession to collaborate with practitioners and openly address the findings from the latest Shadow Shopper Report," said Mark Rantall, chief executive, FPA.
Meanwhile, ASIC is recommending the establishment of an independent body to help consumers obtain second opinions.
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