Today’s financial advisers are frustrated, and that may be causing many of them to contemplate giving up on the business.
About 20% of today’s advisers say they are five years or less from retirement, and 28% say they do not have enough time to spend with clients, according to the J.D. Power 2023 U.S. Financial Advisor Satisfaction Study.
In a summary of the findings, Craig Martin, executive managing director and head of wealth and lending intelligence at J.D. Power, says advisers increasingly find it difficult to deliver the services necessary to grow their business:
“They’re spending more time on administrative and compliance-oriented tasks and, in many cases, they are starting to question whether their firm is committed to providing them with the support and resources they need to succeed.”
Despite these concerns, some advisers still feel satisfied with their ability to meet client needs.
The U.S. Financial Advisor Satisfaction Study was redesigned for 2023. It now measures satisfaction among both employee advisers (who are employed by an investment services firm) and independent advisers (who are affiliated with a broker-dealer but operate independently).
J.D. Power received responses from 4,183 employee advisers and independent financial advisers. The study results were based on six factors:
- Firm leadership and culture
- Operational support
- Products and marketing
- Professional development
Out of a possible 1,000 points, the following all beat the average score of 588 for employee advisers:
- Stifel: 777
- Raymond James & Associates: 711
- Edward Jones: 672
- RBC Wealth Management: 669
- Ameriprise: 660
- Merrill: 610
Meanwhile, the following topped the average score of 626 for independent advisers:
- Commonwealth: 798
- Raymond James Financial Services: 697
- Ameriprise: 664
- Cambridge: 664
- LPL Financial: 629
Interestingly, the study found that among employee advisers, women are significantly more satisfied with their jobs than their male counterparts. On the other hand, among independent advisers, there wasn’t much difference between genders.
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