Consumers have limited awareness of what financial advisers do or the value they provide, research for the Association of Financial Advisers (AFA) has revealed.

But perceptions change once people have dealt with an adviser, according to Rebecca Sheils from the Beddoes Institute, which conducted the study with Zurich Financial Services.

“This was reflected in a high referral rate, higher than any other industry we have looked at,” she said. “High levels of satisfaction with advisers [meant] clients then continued to journey with their advisers for several years.”

The study says consumers also have concerns about fee transparency and conflicted remuneration, leading them to question the impartiality of advice. They regard advisers’ education as “basic”, prompting questions over professionalism.

AFA CEO Richard Klipin says the research provides a blueprint for overcoming misconceptions.

“This blueprint indicates the industry needs to demonstrate an unwavering commitment to enhancing the qualities and attributes of advisers,” he said.

“We also need to enhance the client experience during the advice process, as well as optimising the service proposition.”

Mr Klipin says the industry must also provide transparency and visibility around fees.

“Practices that follow the blueprint have enormous success with their clients,” he said.