Investors Have High Expectations of Their Advisers

Investors expect a lot of their advisers, a survey by the Investment Management Consultants Association (IMCA) found.

First and foremost, 92% think it is important that their adviser helps them maintain a long-term investing approach. In line with that, 83% say it is important for their adviser to help them remain calm when the market drops.

For those investors with more than $1 million in investable assets, 80% want their adviser to keep them up to date on tax law changes. Among all investors, 77% want their adviser to keep them apprised of tax law changes; however, only 53% say that their adviser does so.

Sixty-three percent of investors believe it is important or critical for their adviser to give them access to cutting-edge investment strategies. Sixty percent say that investment management expertise is the most important competency they pay their adviser for.

According to the survey, among investors with more than $1 million in investable assets, 69% think it is important for their adviser to have additional credentials above and beyond what is required of them. Eighty-two percent believe that the certification requirements of their adviser should be rigorous, issued by an objective certifier (72%) and be ongoing (84%). Eighty-five percent believe that if their adviser failed to meet ethical standards, they should lose their credentials.

If Not Now Research, Inc. conducted the survey for IMCA among 1,041 investors with between $50,000 and more than $1 million in investable assets.