Edward Jones and Commonwealth Financial received the highest satisfaction scores from their advisors in a new survey by J.D. Power that pointed to the wealth management industry being in a "generational crisis."
Edward Jones received the highest satisfaction rating among employee advisors, while Commonwealth Financial topped the list among independent advisors who were surveyed, according to J.D. Power.
The survey was conducted January through May and asked 3,571 employee and independent advisors to rate their broker-dealers in seven categories, including compensation, technology, professional development and client support.
Among independent advisors, Commonwealth scored a 960, followed by Cambridge (873), Raymond James Financial Services (869), Northwestern Mutual (817), Cetera (805) and Amerprise (798). Falling below the overall average of 779 were Advisor Group (776) and LPL Financial, the nation's largest independent broker-dealer (772).
In the employee advisor category, Edward Jones scored a 926 out of 1,000, followed by Raymond James & Associates (864), Stifel, Nicolaus & Company (848) and Ameriprise (793). Companies falling below the overall average score of 736 were UBS (701), Morgan Stanley (682), Merrill Lynch (665) and Wells Fargo Advisors (656).
Beyond the satisfaction ratings, however, the survey was notable for how it laid bare the wealth management industry's lack of youth, according to J.D. Power.
The average age of advisors is about 55 and about 20 percent are 65 years old or older, while only 11 percent of advisors are under 40, according to the company.
That means it's important for advisor firms to recruit young talent, and to recognize that this younger cohort has a different view on the industry than their older counterparts, the survey report said.
"The 9-to-5, office-based culture, with its coffee for closers and gong-ringing ceremonies to celebrate new sales is gone,” Mike Foy, senior director of wealth and lending intelligence at J.D. Power, said in a prepared statement. “In its place, the new generation of mobile financial advisors is interacting with clients and prospects via a range of digital channels including social media, text, chat and video."
The survey found, for example, that among employee advisors under 40 who are satisfied with thier firm's technology, 82 percent said they definitely will remain with their firm and 76 percent said they definitely will recommend their firm to others. Among those dissatisified with their firm's technology, the numbers were 33 percent and 29 percent, respectively.