New Research Reveals High Expectations for Advisors

Share Article

Clients rank investment expertise higher than other competencies, according to recent research conducted on behalf of Investment Management Consultants Association® (IMCA®).

IMCA logo

Today’s investors are seeking wide-ranging expertise and guidance from their financial advisors and demanding that they wear many hats. Providing a calming influence, delivering cutting-edge investing strategies and offering tax-law guidance are among the services investors expect, according to recent research conducted on behalf of Investment Management Consultants Association® (IMCA®). The research, based on 1,041 responses from investors with investable assets between $50,000 and more than $1 million, reveals attitudes about advisor expectations and professional certifications.

Findings show that investors want:

  • A calming influence. 83 percent of investors say that it is important or critical for their advisor to help them stay calm when the market drops.
  • Help maintaining a long-term perspective. 92 percent of investors say it is important or critical that their advisor helps them maintain a long-term investing approach.
  • An ongoing understanding of new tax issues. 80 percent of investors with $1 million or more in investable assets say it’s important or critical that their advisor helps them stay current on the latest tax-law changes.
  • Cutting-edge investing strategies. 63 percent of investors say providing access to cutting-edge investing strategies is important or critical.

Potential disconnect?

The findings also reveal a potential discrepancy between what investors say is important to them, and what they say their advisor is actually delivering. Only 53 percent of investors surveyed say they completely agree or somewhat agree that their advisor helps them stay up-to-date on the latest tax-law changes, while 77 percent say it’s important or critical that their advisor do so.

Investing expertise and certifications are in demand

Sixty percent of respondents ranked investment management strategies and expertise as the most important competency they pay their advisor for, compared to only 25 percent who cited holistic financial planning. On the topic of the value of financial certifications:

  • 69 percent of investors with more than $1 million in investable assets say it’s important or critical for their advisor to hold voluntary certifications in addition to required licenses and registrations.
  • Investors surveyed say it’s important or critical that:

o Their advisor meets a rigorous set of standards to be certified (82 percent).
o The credential is issued by an objective, nonprofit, third-party certifier (72 percent).
o Their advisor meets ongoing standards in order to maintain their credential (84 percent).
o Their advisor would lose their credentials if they failed to meet ethical standards (85 percent).

Click here for an infographic detailing the findings, and click here for the executive summary on IMCA’s website.

Research conducted by If Not Now Research Inc., 2015. Contact: Ryan Hoffman, Communications Director. P: 303.850.3079. Email: rhoffman(at)imca(dot)org. Twitter: @IMCA.

About IMCA
Established in 1985, Investment Management Consultants Association® (IMCA®) is a nonprofit professional association and credentialing organization with more than 10,000 individual members and certificants worldwide. IMCA members collectively manage more than $2.477 trillion, providing investment consulting and wealth management services to individual and institutional clients. Since 1988, IMCA has offered the Certified Investment Management Analyst® (CIMA®) certification, which earned accreditation by the American National Standards Institute (ANSI) in April 2011, making it the first financial services credential in the United States to meet international standards (ISO 17024) for personnel certification. IMCA’s Certified Private Wealth Advisor® (CPWA®) certification is suited for wealth management professionals working with high-net-worth clients. In 2014, IMCA conferences and workshops hosted nearly 4,000 attendees.

IMCA® and Investment Management Consultants Association® are registered trademarks of Investment Management Consultants Association Inc. CIMA®, Certified Investment Management Analyst®, CIMC®, CPWA®, and Certified Private Wealth Advisor® are registered certification marks of Investment Management Consultants Association Inc. Investment Management Consultants Association Inc. does not discriminate in educational opportunities or practices on the basis of race, color, religion, gender, national origin, age, disability, or any other characteristic protected by law.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Ryan Hoffman
Investment Management Consultants Association
Like >
Visit website