Edward Jones and Raymond James and Associates Tie to Rank Highest In Financial Employee Advisor Satisfaction WESTLAKE VILLAGE, Calif., Sept. 30
WESTLAKE VILLAGE, Calif., Sept. 30 /PRNewswire/ -- While attracting new
clients and accumulating assets continue to be key concerns for financial
advisors, coping with market volatility and receiving adequate compliance,
technology and product support from firms are also critical, according to the
J.D. Power and Associates 2008 Financial Advisor Satisfaction Study(SM)
released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
Now in its second year, the study measures the satisfaction of both
employee advisors (those who are employed by their investment services firm)
and independent advisors (those who are affiliated with a broker-dealer but
operate independently). The study examines eight key drivers of employee
advisor satisfaction: internal operational support/people; administrative and
compliance support; work environment; firm performance; compensation; products
and offerings; problem resolution; and job duties.
"There is no question that the turmoil in the financial services industry
has profoundly impacted many leading investment firms, as there has been an
unprecedented volume of negative media and market activity in the past 12
months," said David Lo, director of investment services at J.D. Power and
Associates. "In this situation, it's tempting to cut spending -- particularly
with regard to support functions and customer service-- to combat financial
challenges. However, one of the most important actions is to renew focus on
the advisor experience. Providing premium operational and administrative
support will help ease concerns and allow advisors to grow their business and
offer top-notch service to their clients."
The study finds that among employee advisors, the most important driver of
satisfaction is firm performance. The profitability of a firm directly impacts
compensation packages among employee advisors, which often includes various
incentives and stock options. Among independent advisors, support is of
primary importance.
"Clearly, independent advisors have more of a pioneering spirit, and it's
not surprising that what they need most is support through sales, training,
resources, and technology and compliance to grow their business," said Lo.
"Supporting employee advisors is also of particular importance considering an
average of 63 percent of clients follow their employee advisor when they
switch firms. This can lead to a potential loss or gain of $82 million, on
average, in assets under management."
Edward Jones and Raymond James and Associates tie to rank highest in the
2008 study, with each receiving an index score of 879 on a 1,000-point scale.
Edward Jones performs particularly well in providing a satisfying work
environment and supporting its advisors. Raymond James and Associates performs
particularly well in the job duties, products and offerings, compensation and
firm performance factors.
Additionally, among independent advisors, Ameriprise Financial Services,
LPL Financial Services and Raymond James Financial Services all perform
particularly well.
From a marketing perspective, the study also finds that delivering the
right message to prospective advisors can make a considerable difference in
the competitive recruiting space. In particular, some practices that firms
should focus on and highlight as strengths include:
-- Presenting an overview of the firm's performance, which is the most
important factor driving employee advisor satisfaction.
-- Assuring advisors of the support the firm provides, particularly when
it comes to regulatory compliance, technology and administrative
operations.
-- Offering portfolio planning assistance through training, personnel and
e-mail newsletters.
-- Creating and promoting a quota-free sales environment.
The 2008 Financial Advisor Study is based on responses from 3,124
financial advisors who are registered with the National Association of
Securities Dealers (NASD). The survey was conducted online between May and
June 2008.
Employee Advisor Satisfaction Index Ranking
(Based on a 1,000-point scale)
Firm Index Score Power Circle Rating
Edward Jones 879 5
Raymond James and Associates 879 5
Merrill Lynch697 4
Industry Average 655 3
Wachovia Securities 627 3
Citigroup Global Markets 624 3
UBS Financial Services 598 2
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement,
training and customer satisfaction. The company's quality and satisfaction
measurements are based on responses from millions of consumers annually. For
more information on car reviews and ratings, car insurance, health insurance,
cell phone ratings, and more, please visit JDPower.com. J.D. Power and
Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global
information services provider meeting worldwide needs in the financial
services, education and business information markets through leading brands
such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power
and Associates. The Corporation has more than 280 offices in 40 countries.
Sales in 2007 were $6.8 billion. Additional information is available at
http://www.mcgraw-hill.com.
Media Relations Contacts:
Jeff PerlmanJohn Tews
Brandware Public Relations J.D. Power and Associates
Los Angeles, Calif. Troy, Mich.
(818) 317-3070 (248) 312-4119
jperlman@brandwaregroup.com john.tews@jdpa.com
No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
SOURCE J.D. Power and Associates
