Almost half of financial advisers have no confidence at all in ASIC’s ability to monitor and prevent malpractice and financial product collapses, new research by CoreData on the Ripoll Inquiry has revealed.

Four out of five respondents (79.4%) feel advisers are being unfairly targeted, and more than half (57.5%) expect their professional indemnity insurance premiums to increase if the recommendations are adopted.

The research was conducted on Wednesday and Thursday, November 25 and 26 by Sydney-based independent research group CoreData and included 236 advisers, predominantly financial planners and practice principals.

Almost two thirds of respondents (64.3%) disagree that payments from product manufacturers to financial advisers should be ceased and three quarters (76.8%) do not agree that conflicts of interest will be stamped out if the recommendations are adopted.

While 89.3% agree financial advisers should have a fiduciary duty to place clients’ interests ahead of their own, opinion was divided over the impact this would have on the advice industry.

When asked which recommendation would have the biggest impact on the advice industry, ceasing commissions received the highest number of votes (44.6%) followed by legislating to ensure a fiduciary duty (20.2%).

However when asked which recommendation would have the least impact, fiduciary duty again received the second highest number of votes (18.5%).

Kristen Paech, CoreData analyst, said advisers were polarised over the impact of this recommendation, since many do not see it as being any different to what they already do.

“Advisers showed overwhelming support for a fiduciary duty for financial planners, however many believe this will not have an impact since they already put their clients’ interests ahead of their own,” she said.

“Three quarters of advisers believe the changes, if adopted, will bring big changes to the advice industry but many are sceptical of ASIC’s ability to monitor and prevent malpractice and financial product collapses, even with increased powers.

“Only 1.3% are fully confident in ASIC’s ability to do this, and more than two thirds disagree that ASIC does a good job of regulating the financial advice industry.

“Opinion is split over whether the extended powers granted to ASIC in the Ripoll report will improve regulation of the financial advice industry, with 45.5% saying they won’t and 41.7% saying they will.”