Consumers likely to vote against ‘unfavourable financial services policy’

The Association of Independently Owned Financial Professionals (AIOFP) commissioned the research through CoreData to better understand client-adviser relationships and clients’ portfolio considerations in political preferences.

AIOFP executive director Peter Johnston called the research a “game changer” for the advice profession’s political lobbying.

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“Before the 2022 federal election, it is fair to say the advice community did not fully understand or appreciate its potential political power to influence outcomes, the recent passage of the Education Pathways legislation achieved by the AIOFP and now this data is literally a game changer,” Mr Johnston said.

“This should give the advice community confidence that their clients are a huge political resource that can deliver outcomes that benefits the advice industry and themselves.

“This also puts Canberra on notice that we won’t be pushed around and brutally dealt with like the last 10 years.”

While the survey found that 89 per cent of consumers will vote against unfavourable financial services policy outcomes that affects their money, it also found that most advised respondents consider politics an important topic to discuss with advisers and value their adviser’s input.

Around half of advised respondents said they talk to their advisers about the impact of government policies on their portfolios “often” or “always”.

“We think the traditional political view that doctors/pharmacies are powerful is flawed, when was the last time you discussed politics and money with your doctor or chemist shop attendant? This survey confirms that financial advisers play a pivotal role with influencing clients about money and politics,” Mr Johnston said.

He added: “With an expected close 2025 federal election, this is very powerful ammunition to have at our disposal.”

When looking at the most valued sources of information about politics, financial advisers were roughly on par with friends and family. News websites were the top source of information, with 27 per cent of respondents valuing them, followed by family at 20 per cent, friends at 18 per cent, and financial advisers at 17 per cent.

The research comes on the back of a long campaign from the AIOFP to increase lobbying among the financial advice profession.

Mr Johnston previously called for advisers to band together to lobby the government following the release of the government’s response to the Quality of Advice Review (QAR) in June.

“It is time we learn from it and finally do something about it,” Mr Johnston said.

He followed this stance up at the beginning of July on the back of the ASIC levy announcement, saying that the outrage of members over the increase prompted the association to raise its issues with Mr Jones.

“We have decided to commence some lobbying on this levy issue due to the pain and anger this is causing many members, we have not seen this much frustration since the grandfathering revenue ban was announced,” Mr Johnston told members.

“You may recall we suggested commencing this strategy leading into the final 12 months of this term of government and not put another issue on the minister’s plate, but we will do both considering the circumstances.”

In August, Mr Johnston said the association wants to expand on its lobbying success and encouraged all advisers to support its Adviser Political Strategy framework.

“The most politically powerful weapon the advice community has in its armoury are their clients and the commercial/political relationship advisers have with them, that’s what all politicians now fear and underestimated leading into the 2022 election,” he said.

“It should be clearly understood that our 2022 Kooyong marginal seat strategy and outcome has unsettled Canberra, what should be noted however is it can be used in any seat and against any political party at the time of our choosing.

“This is what disturbs all sides of politics, it is therefore critical to continue with subtle posturing to remind and intimidate all stakeholders of our power.”