In a dramatic shift in advisor sentiment, full-service brokerages and large national banks are continually losing the appeal they once had among advisors, who now look more favorably on local banks and well-known insurance and mutual funds companies, according to a study from Phoenix Marketing International.
“A financial services firm must be perceived as conducting business with the highest ethical standards, as a company my clients can trust, and having a stellar industry reputation,” Sarah Thompson, Phoenix VP managing the semi-annual study said in a statement. “Also of interest is that several household-name firms are now viewed less favorably by advisors and these companies will likely receive fewer product recommendations going forward. Firms like AIG come to mind.”
American Funds, Franklin Templeton and Vanguard topped the list of well-known firms that are making the most favorable impression on advisors. As for recommending a brand to their clients, advisors were apt to choose John Hancock, MetLife and Vanguard.
The viewpoints are going to continue like this for a while, with no exact timeframe, the study shows. Tweny-five percent of advisors see the crisis lasting for five years; one-in-five thinks it will come to an end this year.
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One thing is clear, however. Advisors say no American has been safe from market decline and the crisis will no doubt bring long-term effects, most likely on businesses.