Most clients investing through commission-based accounts would consider changing firms if forced into a fee-only model, according to J.D. Power’s latest survey.
Although fee-only clients report they are “generally more satisfied with what they pay their firm,” commission-based clients reject the notion that the
Almost 60% of full-service, commission-based investors said they would “probably” or “definitely” take their business elsewhere if their firm’s compliance with the rule meant switching into fee-only retirement plans, the consulting and research firm’s study found.
The Trump administration appears likely to make the point moot with
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Self-directed investors gave a thumbs up to Charles Schwab, Vanguard, Fidelity and T. Rowe Price in a satisfaction survey of investment firms by J.D. Power. Some firms didnt fare as well.
May 27 -
As investor confidence grows and perceptions of wealth management firms improves, so do advisor perceptions of their firm, particularly among independent advisors, the J.D. Power study reported.
April 11 -
Scottrade emerged as the top-rated firm in J.D. Power & Associates 2013 U.S. Self-Directed Investor Satisfaction Study, but overall investor satisfaction with self-directed firms declined from last year.
June 17 - PH
Raymond James manages to straddle both the independent and employee channels and places second in both.
March 29
“This significant money-in-motion event will undoubtedly create winners and losers among industry firms, with the outcomes determined by how effectively they can communicate and deliver on the unique value proposition they provide to those segments of the market in which they choose to compete,” J.D. Power wealth management practice director Mike Foy wrote in a blog post about the study.
The firm quizzed over 1,000 investors last month in an effort, according to Foy’s post, to shed light on the business ramifications of the rule. Foy writes in an email that the 449 investors who said they pay at least some commissions comprised the sampling for the findings on fee- and commission-based plans.
Some 19% of the group said they “definitely will not” stay with their firms under a mandatory fee-only plan, while 40% said they “probably will not” remain under the change. Only 8% said they “definitely will” stay through the shift, while 33% said they “probably will” stay.
