Nearly half of individual investors trusted financial services companies less in 2010 than the previous year, according to a new report.
Edelman, Chicago, published this finding in a summary of results from a November telephone survey of 503 individual investors conducted by StrategyOne Inc., New York. Respondents had household incomes of $50,000-plus and at least $10,000 in investable assets.
The poll also analyzed an “entry-level affluent” subgroup of the sample consisting of those with an income of $150,000 or more and investments of $100,000 or more.
The survey found that of the 46% of respondents whose trust levels declined, most (57%) cited financial services companies “acting in a greedy manner.” And 18% maintained that the “industry itself has made the problems worse.”
Among the factors most important to the reputation of a financial services company, surveyed investors ranked “honest communication” (91%) and “open and transparent business practices” (84%) at the top.