May 25, 2023

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“As the traditional advice model faces more challenges from lower cost and technology-driven alternatives such as digital or robo-advice, it’s more critical than ever that advisors provide something truly differentiating to their clients,” said Mike Foy, senior director of wealth intelligence at J.D. Power.

“While the industry has long touted comprehensive advice, the study shows that very few full-service investors in Canada—even those with high net worth—are truly receiving such advice from their advisors. And, while many investors may be willing to settle for something less, it’s the investors who do receive comprehensive advice that consistently provide the referrals that drive growth.”
In a recent study, 40% of investors stated their full-service wealth management firm provides them with comprehensive financial advice. According to an Investor Satisfaction Study by J.D. Power Canada, however, only 7% receive what it considers to be comprehensive advice. This includes “making recommendations that are in the best interest of the investor, understanding the investor’s needs and goals, and having a documented financial plan.” Although it is a core value proposition often trumpeted by the wealth management industry, only a fraction of investors actually receive holistic and comprehensive advice from their financial advisor. Read more:
View FAIR Canada’s helpful resources on working with an advisor:
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