“When asked to rank four services in order of important, investment management tops the list (38%),” according to the report. Next in importance were financial planning, wealth management and retirement solutions.
Expertise and close client relationships are connected, the study said.
And clients who believe that their advisors are knowledgeable tend to also believe they are fully engaged, according to the study.
“Engaged clients are not only 1.3 times more likely to say their advisor is knowledgeable, they are 1.6 times more likely to say that he or she demonstrates technical expertise,” according to the study.
Attracting and retaining these demanding affluent clients requires that advisors continue to learn more and prove their professionalism.
Advanced designations are the main ways advisors can demonstrate technical expertise. Seventy-three percent of the wealthy clients surveyed said that designations and credentials are an important way for advisors to demonstrate their technical expertise.
Another element of achieving consumer confidence is ensuring that client relationships are confidential and that the advisor “has the highest ethical standards.”
“High-net-worth clients expect their advisors to have advanced ethics and expertise to drive tangible outcomes,” said Sean Walters, chief executive officer for the institute.
Walters told Financial Advisor that financial professionals must “constantly improve” if they expect to attract and hold this kind of business.
“As you reach the $5 million or more in assets client, you have to be able to offer better and better services. You are facing a more and more competitive environment,” he added. This kind of client, he says, expects a higher level of service than the average client.