Work

Unsung guardians? Communal fraud susceptibility and complaints following mass financial adviser attrition

Year: 2025

Type: article

Abstract: This paper illustrates lesser-known positive impacts of financial advisers on communal fraud susceptibility. The analysis focuses on the unprecedented scale of adviser departures triggered by heightened educational and ethics requirements recently introduced in the Australian financial planning industry. We exploit this quasi-experimental setting of mass exits from the wealth management industry to show the removal of professional financial advice increases fraud in affected localities. Areas having proportionately more advisers with membership in professional associations register fewer cases of fraud. Other adviser heterogeneities, including higher education qualifications, do not discernibly reduce fraud pervasiveness or consumer complaints.

Source: The British Accounting Review

DOI: 10.1016/j.bar.2025.101615

Authors: Y.N.Oh Natalie, Jerry T. Parwada, Eugene Wang

Institution: UNSW Sydney

Language: English

Topic: Financial Literacy and Behavior

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,770