Employers still the main channel for super survey shows
While over 56 per cent of managed investments are entered into on the recommendation of an adviser, advisers play only a limited role in relation to superannuation products, according to a recent survey.
The Roy Morgan Single Source survey for the 12 months to August, based on interviews with 50,000 consumers, showed that there is a lot of variation in the use of intermediaries such as financial advisers in relation to different financial products.
Managed investments had the highest percentage with 56 per cent of all managed investments entered because of the advice provided by a financial adviser.
For superannuation, however, employers still play a major role, accounting for 60 per cent of the market.
Intermediaries only account for 32 per cent when it comes to superannuation products. Roy Morgan said the default fund option provided by employers is still the most common choice for consumers.
Roy Morgan industry communications director Norman Morris said that a lot of the issues raises in the royal commission were the result of how bank customers purchased their product and the extent to which their needs were understood and taken into account.
“Many of the problems reported were a result of consumers having insufficient financial literacy skills for the product they were purchasing and who were obtaining it through a channel not designed to focus on their best interests,” Mr Morris said.