More Brokers And Advisors Are Looking To Roam, Study Finds

A firm’s work environment and satisfactory clearing and settlement systems are the leading grounds for satisfaction with their employers cited by brokers and advisors, followed by compensation, professional development opportunities, products and tools, and technology.

Conversely, the study also found that work environment, products, and clearing and settlement practices tended to be cited as areas of relatively lower satisfaction.

“While it remains important for firms to invest across all support areas, they may have an opportunity to differentiate themselves by making incremental investments in those areas of lower satisfaction,” the report states.

Brokers and advisors continue to favor more fee-based compensation, with 63% indicating they were hoping for some fee-based pay. Currently, only 49% report that they are paid that way.

Study participants expected mutual funds and annuities to continue as their top-selling investment products. But compared to their current product lineup, they expect to see disproportionately higher growth over the next 5 years of separately managed accounts, exchange traded funds, 401(k)s and alternative investments.

“With nearly twice as many brokers and advisors considering switching firms, combined with the fact that the top reason for actually switching is driven by a change in their employer’s direction, it is imperative that broker-dealers maintain a positive work environment and take into account how decisions affecting their firm’s futures will influence broker loyalty,” commented Sandra Metraux, executive vice president, National Financial.