The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has led to a significant crackdown on the education and ethics requirements of financial advisers and the profession’s remuneration structure.
Today, there are roughly 40 per cent fewer advisers on the Financial Advisers Register today than before the Royal Commission. And the decreasing number of financial advisers has wide-ranging effects on consumers.
A study conducted by UNSW Business School experts shows the locations with the least number of practising financial advisers have witnessed a noticeable increase in financial crime.
The paper, Unsung Guardians? Communal Fraud Susceptibility and Complaints Following Mass Financial Adviser Attritions, is co-authored by Senior Lecturer Dr Natalie Yoon-na Oh and Professor of Finance Jerry Parwada from the School of Banking & Finance at UNSW Business School, alongside 2021 University Medalist, UNSW Bachelor of Commerce (Honours) graduate Eugene Wang.
The study has important implications for the industry, consumers and policymakers alike.
New educational and ethics requirements have triggered an unprecedented scale of adviser departures, says UNSW Business School’s Dr Natalie Yoon-na Oh. Photo: supplied
Financial crime has risen as adviser numbers have fallen
The study examines whether financial advisers have a lesser-known, broader contribution as disseminators of expertise to their wider…
