Most people in the United States who use a financial advisor believe they always put their clients’ interests first.
According to a study conducted by industry research group LIMRA, nine out of ten people who work with a paid financial advisor think they always put the investor’s interests before their own. The survey asked respondents to assess their financial advisors according to the following five criteria:
- Always puts my interests first
- Recommends products that are suitable for me
- Gathered sufficient detailed information about my finances before offering advice or recommending products
- Understands my entire financial situation
- Provides excellent value for the costs associated with his/her services
Nine out of ten clients agreed with all of the above statements. LIMRA also found that the answers did not vary based on compensation method; it made no difference whether the respondent's advisor was fee-based, working on commission, etc.
The survey also showed that nearly one in three Americans use a financial professional, with 50% reporting that they have been working with their advisor for five or more years and about one third have had the relationship for ten years or more.
“The high prevalence of longer-term relationships suggests that clients are satisfied with the services they are receiving,” says Matthew Drinkwater, Ph.D., assistant vice president at the LIMRA Secure Retirement Institute. “In turn, the financial professionals who have long-standing clients are more likely to have a deeper understanding of their clients’ needs and preferences.”