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Time-Starved U.S. Financial Advisors Considering Alternative Options, J.D. Power Finds

U.S. wealth management firms have an advisor engagement problem. With markets struggling, compliance and administrative responsibilities growing and the advisor population aging, many advisors are planning their own exit strategies. According to the J.D. Power 2023 U.S. Financial Advisor Satisfaction Study,SM released today, nearly one-third (28%) of financial advisors say they do not have enough time to spend with clients and 20% say they are five years or less away from retirement.

"In difficult market conditions like the ones we've been experiencing for the past several years, great investment advisors set themselves apart by proactively addressing their clients' needs, delivering comprehensive guidance and communicating clearly and frequently about the issues that matter most to their clients," said Craig Martin, executive managing director and head of wealth and lending intelligence at J.D. Power. "Right now, many advisors are struggling to find the time to deliver the level of hands-on service they know is critical to growing 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."

Following are some key findings of the 2023 study:

Study Rankings

Among employee advisors, Stifel ranks highest in overall satisfaction with a score of 777. Raymond James & Associates (711) ranks second and Edward Jones (672) ranks third.

Among independent advisors, Commonwealth ranks highest in overall satisfaction with a score of 798. Raymond James Financial Services (697) ranks second, while Ameriprise (664) and Cambridge (664) rank third in a tie.

The U.S. Financial Advisor Satisfaction Study was redesigned for 2023. It 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; firm leadership and culture; operational support; products and marketing; professional development; and technology.

The study is based on responses from 4,183 employee and independent financial advisors and was fielded from December 2022 through April 2023.

For more information about the U.S. Financial Advisor Satisfaction Study, visit https://www.jdpower.com/business/resource/us-financial-advisor-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2023067.

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.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

1 Net Promoter System®, Net Promoter Score®, NPS®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

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