Invest
One in two Australian retail investors trust financial services industry
The results of a global survey have been released.
One in two Australian retail investors trust financial services industry
One in two Australian retail investors (45 per cent) trust the financial services industry, a new survey by the CFA Institute has revealed.
The study also found that globally, trust in financial services has reached an all time high with 86 per cent of institutional investors saying they have “high” or “very high trust”; up from 65 per cent in 2020.
Specifically with retail investors, trust levels increased from 46 per cent to 60 per cent and were highest in Australia, the US and Singapore.
The five key factors which saw investor trust surge included the strong share market performance, fee compression on investment products, the greater level of technology-enabled transparency on investment products, greater investor access to investment markets and new personalised investment products such as ones that consider ESG factors.
“The highs we’re now seeing in investor trust are a cause for optimism, helped on by strong share markets and falling fees, but the challenge is sustaining trust moving ahead given greater levels of share market volatility,” CFA Societies Australia CEO Lisa Carroll said.
“In Australia too, trust has jumped significantly since 2020 when just one in four investors trusted the financial services industry, with the Hayne Royal Commission eroding confidence in the asset management industry given the significant amount of negative news coverage at the time.
“Looking ahead, as interest rates rise this year and returns fall on asset classes such as equities and property compared to previous years, investment product providers and financial advisors may be more challenged maintaining trust levels with their clients. Technology, the alignment of values, and personal connections with investors can, however, help.”
The survey also noted that Australian retail investors with a financial adviser are more trusting of the industry (58 per cent), compared to less than half without an adviser (39 per cent) and agree that having an adviser adds value.
Around 85 per cent agreed that there is fair opportunity to profit by investing in capital markets (an increase from 81 per cent in 2020), compared to 72 per cent of those without an adviser (an increase from 57 per cent in 2020). Among Australian retail investors, 86 per cent agreed that there is a fair opportunity to profit.
However, the research found that Australian retail investors are still less trusting of advising than their global peers.
“Most investors followed the advice of their adviser during the March 2020 downturn. Among those who were advised to significantly or slightly reduce risk/exposure to the market, 88 per cent and 77 per cent reduced risk, respectively,” Ms Carroll explained.
“Among those who were advised to significantly or slightly increase risk/exposure to the market, 75 per cent and 64 per cent did increase risk as advised. However, 21 per cent and 24 per cent reduced risk, respectively.
“Overall, having a trusted adviser to inform client decisions in stressed market conditions helped investors stick to their long-term investment plans.”
The biggest reasons that Australian retail investors would leave an adviser would be due to underperformance (51 per cent), a lack of responsiveness (37 per cent), inadequate data security (35 per cent) and high fees (35 per cent).
RELATED ARTICLES
Investment insights
Investors maintain positive sentiment amid geopolitical uncertainties
In a surprising show of resilience, investors maintained a positive outlook in September, according to the latest State Street Institutional Investor Indicators released by State Street MarketsRead more
Investment insights
Women in Finance Awards 2025: A leading indicator for talent, performance and regulatory readiness
A record 617 submissions and 236 finalists in this year’s Women in Finance Awards signal more than celebration—they’re a proxy measure of talent pipeline strength across Australia’s financial servicesRead more
Investment insights
Brokers turn complaints into gold by transforming compliance into strategy
Complaint volumes aren’t just rising — they’re getting harder, touching product suitability, vulnerable customers and data use. With brokers now originating the majority of Australian home loans, the ...Read more
Investment insights
Australia’s growth beat is real — but it’s running on the wrong engine
Australia’s June-quarter expansion surprised to the upside, powered by households and government even as public investment sagged. The composition matters: consumption rose faster than essentials, and ...Read more
Investment insights
Australia’s 5% deposit reboot: who wins, who pays, and what changes from 1 October
By pulling forward and widening the 5% Home Guarantee Scheme, Canberra has reset the entry point to home ownership — and the chessboard for banks, brokers, developers and insurers. The higher price ...Read more
Investment insights
Australian investors undeterred amidst global uncertainty, prioritise financial security, tech stocks, and tangible goals
In a world marked by economic fluctuations and geopolitical uncertainties, Australian investors are showing resilience and confidence, according to a recent survey by wealth app SharesiesRead more
Investment insights
Escaping the dollar trap how treasuries and bullion are reshaping portfolios
Gold’s geopolitical premium has broken out of the margins and into the mainstream of reserve and portfolio strategy. Central banks have been net buyers for years and, since 2022, their accumulation ...Read more
Investment insights
From check-up to edge: a portfolio review case study that turned volatility into advantage
With rates rising more than 400 basis points in 18 months and asset correlations behaving badly, periodic portfolio reviews have moved from hygiene to edge. This case study shows how a disciplined ...Read more
Investment insights
Investors maintain positive sentiment amid geopolitical uncertainties
In a surprising show of resilience, investors maintained a positive outlook in September, according to the latest State Street Institutional Investor Indicators released by State Street MarketsRead more
Investment insights
Women in Finance Awards 2025: A leading indicator for talent, performance and regulatory readiness
A record 617 submissions and 236 finalists in this year’s Women in Finance Awards signal more than celebration—they’re a proxy measure of talent pipeline strength across Australia’s financial servicesRead more
Investment insights
Brokers turn complaints into gold by transforming compliance into strategy
Complaint volumes aren’t just rising — they’re getting harder, touching product suitability, vulnerable customers and data use. With brokers now originating the majority of Australian home loans, the ...Read more
Investment insights
Australia’s growth beat is real — but it’s running on the wrong engine
Australia’s June-quarter expansion surprised to the upside, powered by households and government even as public investment sagged. The composition matters: consumption rose faster than essentials, and ...Read more
Investment insights
Australia’s 5% deposit reboot: who wins, who pays, and what changes from 1 October
By pulling forward and widening the 5% Home Guarantee Scheme, Canberra has reset the entry point to home ownership — and the chessboard for banks, brokers, developers and insurers. The higher price ...Read more
Investment insights
Australian investors undeterred amidst global uncertainty, prioritise financial security, tech stocks, and tangible goals
In a world marked by economic fluctuations and geopolitical uncertainties, Australian investors are showing resilience and confidence, according to a recent survey by wealth app SharesiesRead more
Investment insights
Escaping the dollar trap how treasuries and bullion are reshaping portfolios
Gold’s geopolitical premium has broken out of the margins and into the mainstream of reserve and portfolio strategy. Central banks have been net buyers for years and, since 2022, their accumulation ...Read more
Investment insights
From check-up to edge: a portfolio review case study that turned volatility into advantage
With rates rising more than 400 basis points in 18 months and asset correlations behaving badly, periodic portfolio reviews have moved from hygiene to edge. This case study shows how a disciplined ...Read more
