Financial Advisers: Who Can You Trust?

Media Release SYDNEY: 20 August 2014
Issued by 64 Media on behalf of Beddoes Institute

Beddoes Institute, a data and benchmarking company that works across all major stakeholder groups in the financial services sector, has today launched the Most Trusted Advisers network, including a register and consumer-facing App, designed to serve as a referral source for consumers to advisers that other consumers profoundly trust and as a way to champion best of breed advisers.

Beddoes Institute analysed thousands of client ratings from a survey of over 150 advisers and identified an objective benchmark of exceptional client service and performance. That benchmark is a Net Promoter Score (NPS®) of 50 or more.

Speaking at the launch of the Most Trusted Advisers network in Sydney today, Dr Adam Tucker, Director of Beddoes Institute said, “The NPS® is a powerful loyalty metric which has been linked to profitability and growth in a wide range of businesses. An NPS® higher than zero is regarded as ‘good’ while an NPS® of 50+ is regarded as excellent. Advisers must achieve an NPS® of 50 or more in order to qualify for membership of the Most Trusted Advisers network.”

By way of illustration, Optus has an NPS® of around minus 8, Telstra around minus 13 while airlines collectively average around zero. “Advisers in the Most Trusted Advisers network outrank consumer brands like eBay, Dan Murphy’s and Emirates*,” Dr Tucker said. “We are seeing scores in the advice industry that are higher than we have ever seen anywhere.”

Membership of the Most Trusted Advisers network is by invitation only and is based solely on how participating advisers have been rated by their clients. “The advisers we surveyed included the very best of the best from corporate partner advisory networks as well as those advisers who have, over the past three years, been finalists and winners of the AFA Adviser of the Year Award,” Dr Tucker said.

The survey is the Beddoes Institute’s Client Experience Survey, part of the Beddoes Institute’s Leading Practices Program. “Most Trusted Advisers deliver significantly better outcomes to their clients,” Dr Tucker said. “Their clients believe they are more on track with their financial plan and are financially better off as a result of working with their adviser compared to clients of other financial advisers.”

Most Trusted Advisers also rated higher on their qualifications, experience and technical skills than other advisers and have better interpersonal skills, Dr Tucker said. “We found that clients of Most Trusted Advisers are more satisfied and have stronger relationships with their advisers than clients of other advisers. We were also very pleased to discover that the advisers currently included on the Most Trusted Advisers network hail from different segments of the industry, including both institutional and non-institutionally aligned licensee groups.”

Advisers on the Most Trusted Advisers network will be assessed every 12-18 months and must re-qualify in order to continue to belong to the network. They cannot pay to belong.

Consumers can source an adviser in the network via the free Most Trusted Advisers App, which has now been approved by Apple. “The App allows consumers to in effect crowdsource an adviser they can trust. It’s a little bit like being able to talk to thousands of neighbours over the back fence about how to find an adviser they can trust.”

For advisers, the Most Trusted Advisers network formalizes client endorsement of their services. “Our message to advisers who are members and those who wish to be is - your clients trust you, now, via the Most Trusted Advisers network and app, others can too.”

View the Most Trusted Advisers website here.

Watch Justine's speech on behalf of the advisers at the launch of the network.