Independent advisors who have kept in touch with clients have been the most effective vehicle for maintaining consumers’ confidence during the financial crisis.
Consultants at McKinsey & Company, New York, have published that conclusion in a summary of results from a survey of 2,000 U.S. consumers conducted in January.
Only 40% of the participating consumers said they had been contacted by their financial advisor about the financial crisis. But those advisors that did get in touch were twice as likely to receive referrals from clients and to be seen as extremely able to address their clients’ retirement needs, McKinsey says.
Advisors at independent firms have been the most hands-on and also the most effective at addressing consumers’ concerns and at maintaining clients? preparation for retirement; McKinsey says.
Althought independents now top the list of institutions that the participating consumers trust with their assets, just 44% of survey participants said they have a high level of trust in independent financial institutions.