In this, the 20th year of J.D. Power’s annual full-service investor satisfaction study, UBS takes the honor of 2022 as the highest-ranking firm in overall satisfaction, displacing Edward Jones, the highest-ranking firm of 2021, at 10th. has arrived. This year’s ranking.
In turn, Vanguard rose 11 places in the rankings to No. 2, followed by Charles Schwab at No. 3 (up from 10th place in the 2021 study).
In its top findings, J.D. Power found that “the industry is making little or no progress on its core value proposition: providing comprehensive advice based on a deep understanding of individual clients,” according to its announcement.
In addition, J.D. Power found that “only 14% of investors evaluated in the study receive a level of comprehensive advice from their primary financial advisor as defined by the J.D. Power Criteria, which includes making recommendations in the best interest of the client and their goals.” and understanding the needs; and have a documented financial plan.”
Other key findings in the 2022 study are that the investments many firms have made in their digital technology over the past few years are starting to pay off.
Specifically, investor satisfaction with digital channels saw the biggest year-over-year improvement of any single factor in the study, rising 26 points (on a 1,000-point scale), according to the firm.
Still, while the firm notes that 51% of full-service investors strongly agree that their advisors provide them with comprehensive advice that addresses all of their money management needs, only 26% within that group are “comprehensive advice.” Were experiencing the level of JD Power Criteria.”
However, consultants can note that 26% of people who receive comprehensive advice are clingy. A full 76% of them said they “definitely will not change” investment firms in the next year.
The study was conducted from November 2021 to January 2022 and is based on responses from 4,396 investors who work directly with a dedicated financial advisor or team of advisors.