07/06/2022 | Press release | Distributed by Public on 07/06/2022 06:15
Edward Jones, Commonwealth Rank Highest in Satisfaction in Respective Segments
Long before the Great Resignation became a national phenomenon, wealth management firms were struggling to manage attrition among their financial advisors and attract new talent to the profession. According to the J.D. Power 2022 U.S. Financial Advisor Satisfaction Study,SM released today, a combination of technological- and pandemic-driven disruption has exacerbated that challenge, with 15% of advisors at wirehouse firms[1] and 7% of independent advisors now categorized as "at risk" of leaving their firms in the next two years.
"With the average age of a financial advisor climbing to 57 this year, wealth management firms that want to continue to grow must do more than just manage advisor attrition rates; they also need to actively create advisor brand evangelists who will attract the next generation of talent," said Mike Foy, senior director of wealth and lending intelligence at J.D. Power. "Right now, many firms are missing the mark on developing that level of advisor engagement, but there are some clear drivers that need to be in place for it to happen. Notably, firms that are making the right investments in technology, effective marketing support, competitive products and services and have a strong top-down corporate culture are significantly outperforming the competition when it comes to advisor satisfaction and advocacy."
Following are some key findings of the 2022 study:
Study Rankings
Among employee advisors, Edward Jones ranks highest in overall satisfaction with a score of 876. Stifel (872) ranks second and Raymond James & Associates (863) ranks third.
Among independent advisors, Commonwealth ranks highest in overall satisfaction with a score of 918. Raymond James Financial Services (842) ranks second and Ameriprise (821) ranks third.
The U.S. Financial Advisor Satisfaction Study measures satisfaction among both employee advisors (those who are employed by an investment services firm) and independent advisors (those who are affiliated with a broker-dealer but operate independently) based on six key factors (in alphabetical order): compensation; leadership and culture; operational support; products and marketing; professional development; and technology.
The study is based on responses from 3,039 employee and independent financial advisors and was fielded from January through May 2022.
For more information about the U.S. Financial Advisor Satisfaction Study, visit
https://www.jdpower.com/business/resource/us-financial-advisor-satisfaction-study.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.
Media Relations Contacts
Geno Effler, J.D. Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]
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[1] Merrill, Morgan Stanley, UBS and Wells Fargo Advisors