Commonwealth Financial Network and Edward Jones received the highest marks for advisor satisfaction in the 2014 “U.S. Financial Advisor Satisfaction Survey” by J.D. Power, released earlier this summer.
The survey from the Westlake Village, Calif.-based consumer research company is based on the responses of 3,900 financial advisors—either employees of an investment services firm or independent advisors associated with a broker-dealer. The rankings are based on scores of 0 to 1,000.
In the independent broker-dealer category, Commonwealth Financial Network ranked highest for a fourth consecutive year with a score of 954. Cambridge Investment Research Inc. ranked second (913), followed by Raymond James Financial Services Inc. (899).
Edward Jones ranked first in the employee advisor segment for the fifth year in a row with a score of 904. Raymond James & Associates Inc. (867) ranked second, followed by RBC Wealth Management (834). The study considers advisor/professional support, client/customer-facing support, compensation, firm leadership, operational support, problem resolution and technology support in determining the levels of advisor satisfaction. Overall satisfaction among employee advisors is 721, versus a score of 778 among independent advisors.
Compensation and firm leadership are the top factors driving advisor satisfaction, according to the survey. However, J.D. Power says firms need to look ahead and begin planning for a generational shift of retiring advisors during the next decade.
With one-third of today’s advisors expected to retire in the next decade, and with more experienced advisors considering the increased flexibility and financial benefits of becoming RIAs, investment firms need to mentor newer advisors and provide them with technology to have a competitive advantage over firms that do not, J.D. Power says.
Commonwealth, Edward Jones Tops In Advisor Satisfaction
August 2014
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