Study: More Wealthy Investors Seeking Out Financial Advisers.Wealthy clients are dramatically shifting their loyalties away from financial institutions and toward advisers and "open architecture" Internet platforms, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report by the Spectrem Group, a Chicago-based consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a specializing in the affluent and retirement markets. Three key trends are driving the change, said Laurie Cochran, a Spectrem director and co-author of the report, "Is Client Loyalty Dead? Meeting the Needs of Affluent Investors in the Age of Aggregation." The reasons are the impact of the Internet, open architecture and the increased role of independent advisers. Cochran said affluent investors demand access to a variety of investment products and services from many sources, a demand that the Internet helps fill. "We believe that investors are comfortable receiving all their financial information from one source, but they do not want all of their investments to be in the products of one company," she said. "With the emergence of open platforms like online brokerage accounts Brokerage Account An arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage, which then carries out the transactions on the investor's behalf. , Schwab's One Source and new account aggregation Account aggregation is a method that involves compiling information from different accounts, which may include bank accounts, credit card accounts, investment accounts, and other consumer or business accounts, into a single place. services, investors now have the ability to satisfy those goals." The report found that more than one-third of affluent investors now consider using an independent adviser, such as a registered investment adviser or a certified financial planner Certified Financial Planner (CFP) A person who has passed examinations accredited by the Certified Financial Planner Board of Standards, showing that the person is able to manage a client's banking, estate, insurance, investment, and tax affairs. , Cochran said. About the same proportion use a full-service broker Full-Service Broker A broker that provides a large variety of services to its clients, including research and advice, retirement planning, tax tips, and much more. Of course, this all comes at a price, as commissions at full-service brokerages are much higher than those at discount . Spectrem drew data for the report from a broader study it conducted of the overall affluent market. It was based on 1,923 completed questionnaires from a national representative sample of households with at least $100,000 annual income and/or net worth of at least $500,000, not including primary residence. |
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