The controversial and damaging Australian Securities and Investments Commission (ASIC)/Australian Consumers Association survey of financial planners attracted more attention than its compilers may have expected. Speaking at the Australian Investors’ Association annual conference, ASIC Commissioner Berna Collier said it was reported in more than 194 Australian newspaper and magazine articles.

Not that ASIC is going to say sorry. Far from it. Accusing planners of too may conflicts of interest, Professor Collier said the media took such an interest in the issue because “the performance of financial planners has a significant impact on how much money people will have in their pockets during retirement”.

Calling the survey a “catalyst for change,” she said ASIC undertook it because of  well-recognised concerns over standards in the financial planning sector. A key reason was because of  pressures “arising from an ageing population that [is] creating a growing demand for financial planning”.

“The Financial Services Reform Act gives us many tools, and will improve standards, but a survey like this can highlight how advisers are complying with these requirements, and identify problem areas that [ASIC] should target.”

Professor Collier said conflict of interest is the most difficult financial planning problem to address, noting that “about 70% of financial planners have ownership links to product suppliers” and “up to 95% accept commissions in some form from product suppliers”.

It “hardly needs pointing out” that if the financial planning industry doesn’t shape-up soon the Government will step in, she said.

Another survey will be conducted in 2005.