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Featured Advisor

Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

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Advisor Satisfaction Contingent on Services, Not Standards

What criteria are most important in selecting a financial advisor

Suitability standards or fiduciary standards? Ask an investor which is preferable in working with a professional financial advisor and he or she is most likely to say, “I just want my phone calls returned the same business day.”

According to the recent J.D. Power and Associates 2011U.S. Full Service Investor Satisfaction Study, 85 percent of full service investors have either not heard of or do not understand the difference between the two. A suitability standard requires advisors to make investments they deem suitable for their clients. The Security and Exchange Commission, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, submitted a study earlier this year recommending a uniform fiduciary standard which would require financial advisors, including brokers and insurance agents, to serve the best interests of their clients and disclose any conflicts of interest.

When surveyed by J.D. Power and Associates, 57 percent said that the fiduciary standard increased their comfort level, while 42 percent said it decreased their comfort level. But surveyed investors have more pronounced ideas of what they want from their advisor. In order of importance, key best practices include:

  • Clearly communicating reasons for investment performance
  • Clearly explaining how fees are charged
  • Proactive advisor contact regarding new products and services or accounts four times in the past 12 months
  • Returning client calls/inquiries within the same business day
  • Reviewing or developing a strategic plan within the past 12 months
  • Providing a written financial plan
  • Discussing risk tolerance changes and incorporating into plan where appropriate in the past 12 months

     Our study of investors with a net worth between $100,000 and $1 million (not including primary residence) found similar criteria in choosing a new advisor. Nearly all (97 percent) prized honesty and trustworthiness, while 92 percent put the greatest stock in transparency and being kept in the loop. Ninety-one percent considered the advisor’s investment track record.

Failure to live up to these characteristics or perform these services is among the most cited reasons for changing financial advisors, according to our research.