After a considerable decline in adviser perceptions from 2007 to 2008, financial adviser sentiment regarding their firms has stabilized in 2010, a new survey showed.
The J.D. Power and Associates 2010 U.S. Financial Adviser Satisfaction Study measured the satisfaction of both employee advisers, which are those who are employed by their investment services firm and independent advisers or those who are affiliated with a broker-dealer but operate independently.
The findings revealed adviser perceptions of their firm's financial stability have improved, most notably among employees of wire house firms and independent advisers. Perceptions of financial stability of wire houses have improved to 5.4 on a seven-point scale in 2010 from 4.6 in 2008. While advisers' perceptions of the financial stability of independent firms have improved to 6.3 in 2010 from 6.0 in 2008, they still trail those of advisers of nonwire house firms (6.5 in 2010).
The study examined eight drivers of employee adviser satisfaction, including firm performance, compensation, work environment and products and offerings.