An industry survey has found 88% of financial planners’ clients have rated their financial plans as “good” or “very good” – quite a contrast from last year’s “shadow shopping” report by the Australian Securities and Investments Commission (ASIC) and the Australian Consumers' Association (ACA).

The survey was commissioned by Credit Suisse Asset Management (CSAM). Thirty firms took part and about 576 clients returned responses. CSAM says that’s more than in the ASIC/ACA study.

Head of retail business Chris Larsen says ASIC took the report seriously but the ACA used it as an 18-month “planner-bashing” exercise. “We wanted to get some feedback that wasn’t completely focused on compliance and regulation.”

He says planners are becoming a profession rather than just another industry group. “Planners and stockbrokers used to be put in the same bag but that’s not the case any more – they have moved into customer service.”

Nearly 50% of the respondents said trust and reliability are the most important factors when dealing with planners. Another 48% said providing tailored advice is the most important factor.

Kathryn Greiner, Chair-elect of the Financial Planners Association (FPA), told Sunrise Exchange News yesterday the ASIC/ACA report was narrow and the new report much more balanced.

She says it deals with more planners than the ASIC/ACA report and its findings are more in line with how the FPA has felt about the industry. “The key to good financial planning is trust, and the higher the level of trust a planner can establish with their client, the more business they’ll generate.”

Delia Rickard, ASIC Regional Commissioner for the ACT, says the reports shouldn’t be compared at all, because they measure different things. “The new report measures clients’ relationships with their planner… the ASIC/ACA report measured the quality of advice.”