High-Quality Financial Advice Wanted!

Bluethgen, Ralph; Meyer, Steffen; Hackethal, Andreas

doi:10.2139/ssrn.1102445

Cited by 17 publications

(9 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Moreover, 23% reported allocating their assets based on what their advisors recommended. Bluethgen, Meyer, and Hackethal (2008) survey 64 independent financial advisors in Germany and find that 77% of respondents prefer recommending an actively managed fund to a passively managed fund, similar to the findings of Mullainathan, Noeth, and Schoar (2010). The authors also find that advisors who are both sophisticated and receive a smaller portion of their income through commissions are more likely to recommend passive index fund investments.…”

Section: Survey Data Can Be Particularly Valuable In Determining Who supporting

confidence: 74%

Impacts of Conflicts of Interest in the Financial Services Industry

Burke¹,

Hung²,

Clift³

et al. 2015

View full text Add to dashboard Cite

Section: Survey Data Can Be Particularly Valuable In Determining Who supporting

confidence: 74%

Impacts of Conflicts of Interest in the Financial Services Industry

Burke¹,

Hung²,

Clift³

et al. 2015

View full text Add to dashboard Cite

“…There is therefore a critical role for professional financial advice (Campbell, 2006;Iannicola and Parker, 2010). However, advice is essentially a credence good, which is hard to assess (Bluethgen et al, 2008) as there may be limited evidence of its quality (Iannicola and Parker, 2010;Inderst and Ottaviani, 2012).…”

Section: Financial Advice and Ethicsmentioning

confidence: 99%

The primacy of ethics in the provision of financial advice

Bruhn

Asher

2020

Accounting & Finance

View full text Add to dashboard Cite

Most people need professional advice to navigate complex financial markets. However, information asymmetry between adviser and client makes the assessment of advice difficult, and is exacerbated when providers are motivated by self-interest. This undermines the effectiveness of the financial system. New regulations aim to mitigate such issues, prohibiting some conflicts of interest and imposing educational requirements and a code of ethics for financial advisers practising in Australia. An Australian case study highlights the main ethical issues and suggests that the lens of virtue ethics can assist the development of more appropriate financial advice, and inform further regulatory developments.

show abstract

“…Financial advice, however, is essentially a credence good with its quality being hard to assess (Bluethgen et al 2008). This is also exacerbated by the complexity of the underlying issues that financial advice pertains to (FSA 2009).…”

Section: The Difficulty Of Assessing Valuementioning

confidence: 99%

Lessons About Best Interests Duty

Bruhn¹,

Miller²

2014

AABFJ

View full text Add to dashboard Cite

Financial advice is essentially a credence good, whose value is hard to assess. Yet in the Australian context the need for quality advice is growing, with self-sufficiency a growing trend and individuals facing significant complexity in their financial affairs. Recent regulatory proposals and reforms have been offered as a means to provide some comfort for consumers about the quality advice that they might receive, yet the challenge remains about what is meant by 'quality' in this area. By referring to recent high profile collapses, we describe some factors and features that are generally considered as examples of poor quality advice. In this manner, we offer bounds on what quality can be represented by, and outline factors that can be considered by individuals when assessing the quality of any service being offered.

show abstract

High-Quality Financial Advice Wanted!

Cited by 17 publications

References 13 publications

Impacts of Conflicts of Interest in the Financial Services Industry

Impacts of Conflicts of Interest in the Financial Services Industry

The primacy of ethics in the provision of financial advice

Lessons About Best Interests Duty

Contact Info

Product

Resources

About