Best Places for Financial Advisors

Senior couple looking over documents with financial advisor

The famous marketplace studies corporation J.D. Power and Associates (a department of McGraw-Hill) conducts an annual have a look at of economic advisor pleasure. The look at pattern is drawn from a database of over 720,000 individuals within the U.S. who maintain Series 6 or Series 7 FINRA licenses. This database is maintained by means of a organization called Qualified Media (QM).

Survey of Financial Advisors Sample

A random subset of human beings changed into drawn from the QM database, in accordance with statistical sampling strategies. These human beings had been invited by way of mail to complete an online survey among May 23 and June 19, 2008. Surveys with solutions to as a minimum 50% of the questions utilized in calculating pride were dealt with as valid, and had been collected from three,124 monetary advisors. J.D. Power released its results on September 30, 2008. Respondents were divided into two classes:

  • Employees of a broking provider
  • Independent financial advisors who technique transactions thru a given dealer provider

Drivers of Financial Advisor Satisfaction

The J.D. Power survey rolls up its diverse questions into 8 key categories that power financial marketing consultant pride. Financial advisors had been requested to attach a percentage weight to each category to reflect its importance to them, for a total of 100% across all categories. Likewise, financial advisors additionally needed to attach weights to the importance of every character trouble protected beneath these eight classes.

The numbers in parentheses under replicate the proportion weights connected to the class in query with the aid of, respectively, employee monetary advisors and independent economic advisors:

  • Firm performance (24%, 11%)
  • Compensation (sixteen%, 12%)
  • Administrative and compliance support (14%, 18%)
  • Internal operations help (12%, 22%)
  • Job responsibilities (eleven%, thirteen%)
  • Products and services (9%, 7%)
  • Problem resolution (7%, 17%)
  • Work surroundings (6%, NA)

Firm overall performance includes economic outlook, the effectiveness of management, competitiveness within the marketplace, and hiring and recruiting practices.

Compensation includes payout, job protection, retirement benefits, and medical health insurance.

Administrative and compliance support consists of the usefulness of the firm's investment studies, employee instructional possibilities, high-quality of data generation, the responsiveness of records technology body of workers, appropriateness of compliance oversight, and amount of administrative paperwork.

Internal operational aid consists of the exceptional, reliability, and helpfulness of fellow monetary advisors, other co-workers, assist personnel, and supervisors.

Job obligations include the quantity of undertaking supplied by way of the paintings, the liberty given to the monetary consultant to endorse the products and offerings they discover maximum suitable, and the workload.

Products and services include variety thereof, competitiveness thereof, reasonableness of pricing, and the availability of client training substances.

Work environment includes office conditions, dress code, and exceptional of smash areas.

Best Firms for Financial Advisors: Firms had been given a score on a 1,000 point scale, based at the responses of financial advisors to the survey questions. Responses were weighted in keeping with the relative importance that the respondents located at the various drivers, in addition to by way of the companies' marketplace stocks. Only companies with as a minimum 100 legitimate surveys were rated.

Responses from impartial financial advisors were not robust enough to rank corporations, given J.D. Power's standards, from their perspective. Employee monetary advisors ranked the firms this manner:

  • Edward Jones (879)
  • Raymond James (879)
  • Merrill Lynch (697)
  • Industry Average = 655
  • Wachovia Securities (627)
  • Citigroup Global Markets (Smith Barney) (624)
  • UBS Financial Services (598)

J.D. Power launched individual organization ratings on seven of the 8 dimension classes. They excluded hassle decision.

  • Edward Jones, Raymond James, and Merrill Lynch had been above the industry average in all seven classes.
  • Merrill Lynch was 0.33 in every class.
  • Edward Jones changed into first in 3 classes: paintings surroundings, internal operational support, and administrative and compliance assist. It became 2d in the rest.
  • Raymond James turned into first in 4 classes: process obligations, products and offerings, reimbursement, and corporation overall performance. It become 2nd within the relaxation.
  • UBS and Wachovia had been underneath average in all classes except the work environment.
  • UBS finished ultimate in 5 classes.
  • Citigroup turned into above average most effective in task responsibilities and repayment.

A difficult characteristic of the examine is that one predominant full-carrier securities corporation, Morgan Stanley, did now not elicit enough valid responses to be ranked.