Over three quarters of investors trust politicians more than financial advisers

OVER three quarters of investors believe financial intermediaries, such as client-facing advisers, are less trustworthy than politicians, according to a survey.<br /><br />Intermediaries are perceived as being untrustworthy and lacking knowledge, perhaps as a result of poor education by investment managers on complex products and risk management practices, according to the KPMG/Datamonitor study. <br /><br />&ldquo;It is little wonder that investors, faced with the realities of plummeting stock markets and portfolios, have questioned the integrity of the investment management industry,&rdquo; said William David Seymour, partner and global head of investment management at KPMG.<br /><br />To combat the breakdown of trust, 58 per cent of institutional investors said that investment managers should provide financial intermediaries with better product training, a sentiment felt by 75 per cent of investment managers themselves.<br /><br />The respondents also said improved lines of communication should flow from investment managers to intermediaries and to regulators, as they will play a fundamental role in repairing the trust that has been broken.