A J.D. Power 2018 U.S. Financial Advisor Satisfaction Study found that advisors' satisfaction with their firms is improving, and identified the firms leading the pack.
The survey was intended to give insights on how firms can retain and recruit advisors to address the concerns of a growing base of customers, such as millenials, baby boomers and women, who now control 51 percent of U.S. wealth, according to the BMO Wealth Institute.
The survey tackled regulatory issues such how the DOL and the broker protocol impacted the perception that financial advisors had on their firms. The survey measured satisfaction among both employee advisors, those who are employed by an investment services firm, and independent advisors who are affiliated with a broker-dealer but operate independently.
Seven key factors were rated: client support; compensation; firm leadership; operational support; problem resolution; professional development; and technology support.
Ratings were calculated using a 1,000-point scale. On average, among employee advisors, the score was 726, which is up seven points from 2017. Among independent advisors, the satisfaction averaged 753, which was up one point from 2017 study.
Financial advisors not in the top 10 for employee advisor satisfaction rating were Merrill Lynch with a 697 rating, Morgan Stanley with a 682 score and Wells Fargo Advisors with a 618 rating
The study took responses from 3,227 employee and independent financial advisors from January-April 2018.
These are firms rated the highest by their advisors, in ascending order, according to J.D. Power:
10. LPL (Tie)
LPL Financial independent advisor satisfaction score was 707. The Boston-based broker dealer was founded in 1968, and serves over 16,000 financial advisors and 700 financial institutions.
10. UBS Financial (Tie)
With 62,537 employees, UBS had an employee advisor satisfaction score of 707. The investment banking and financial service company is headquartered in Basil, Switzerland.
9. Advisor Group
The Advisor Group scored a 751 and came in just under the overall independent advisor average of 753. The broker-dealer network has over 5,000 affiliated advisors.
8. Ameriprise Financial
Taking a spot in both overall employee advisor and overall independent ranks, Ameriprise took fourth in employee advisor satisfaction with a 799 and fifth in overall independent satisfaction with a score of 740.
7. Cetera
The El Segundo, Calif.-based group ranked fourth for overall independent advisor satisfaction scoring an 806. Cetera was founded in 2010 and has 1,300 employees.
6. Stifel, Nicolaus & Company
Those surveyed gave the firm an 841 and came in third for overall employee advisor satisfaction. The full-service wealth management and investment banking firm was established in 1890. Based in St. Louis, the firm reported revenue of $2.2 billion in 2014.
5. Raymond James and Associates
Ranked second in overall employee advisor rankings with a score of 857, the firm lists $730 billion in client assets.
4. Cambridge Investment Research
With a score of 864, the firm ranked third in overall independent advisor rankings. Founded in 1981, the Fairfield, Iowa-based broker-dealer and asset management firm reported $95 billion AUM in 2017.
3. Raymond James Financial Services
Raymond James Financial Services ranked as the second highest in overall independent advisor rankings with a score of 865. Approximately 7,600 financial advisors are associated with Raymond James, with over 3,000 locations in the US, Canada and overseas.
2. Edward Jones
The St. Louis firm scored the highest in overall employee advisor rankings with a 909. The firm reported more than seven million clients and about $1 trillion in assets under management.
1. Commonwealth Financial
Scoring a 955,Commonwealth has the highest in overall independent advisor rankings. Founded in 1979, Commonwealth currently has 1,778 advisors and 854 staff. In 2017, the firm reported total account assets of approximately $156 billion.
The full report can be viewed here.
