Consumer Trust in Advisers Shaped By Memberships, Experience

Thirty-five percent of Americans surveyed by Million Dollar Round Table say their trust would increase in financial professionals if they can demonstrate they are active members of industry associations.

According to a new study commissioned by the Million Dollar Round Table (MDRT) and conducted online by Harris Poll, the vast majority of Americans have “at least some trust” in financial institutions.

Among over 2,000 U.S. adults ages 18 and older, including over 700 who currently work with a financial adviser, the research shows 87% have at least some trust, including 53% with a moderate amount or great deal of trust.

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Researchers suggest their findings underscore an opportunity for advisers to highlight how their memberships benefit their clients. Thirty-five percent of Americans surveyed by Million Dollar Round Table say their trust would increase in financial professionals if they can demonstrate they are active members of industry associations. Advisers may also want to stress their roots and experience in the industry, given that 54% of survey respondents say they have greater trust in professionals with “at least several years of work experience.”

When it comes to hiring a financial professional, Million Dollar Round Table (MDRT) reports, the vast majority (82%) of Americans do not have a preference in regards to gender. At the same time, nearly one in five would prefer their financial professional to be older than them if they were to work with one.

Results show 62% of Millennials, defined here as those ages 18 to 34, who are not currently working with a financial professional, say they would be more confident in their financial future if they did hire one. In addition, 78% of this age demographic who currently work with a financial professional say they feel more confident in their financial future because they work with one.

“Understanding Millennials’ priorities is vital in order to foster positive relationships with our next generation of clientele,” explains James Pittman, MDRT president. “There is a major opportunity for advisers who can provide them with confidence about their financial future while emphasizing shared values, such as volunteerism.”

SPARK Publishes RFP Guide Update for Advisers and Clients

Researchers conducted a survey that enabled SPARK to better determine how the RFP Guide is used by advisers and providers today, leading to the new update.

The SPARK Institute, a non-profit organization lobbying for the interests of the retirement services industry and its clients, released a new version of its “RFP Guide for Selecting Defined Contribution Service Providers.” 

According to Tim Rouse, executive director of The SPARK Institute, his organization developed the guide to assist advisers, consultants and plan sponsors alike. Using the guide, these professionals can streamline and professionalize the important task of preparing and evaluating requests for proposal (RFPs) for 401(k) and other defined contribution retirement plans.

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SPARK originally issued an RFP Guide in 1997, published a major update in 2014, and has made minor changes to it each year. This new edition, Rouse says, “represents significant updates to incorporate the latest industry regulations, products, services and technologies and the addition of The SPARK Institute’s Cyber Security Best Practice Standards.”

“SPARK also wants to acknowledge the efforts of Cynthia Hayes and Matthew Smith of Oculus Partners for their time and dedication in the making of this document,” Rouse notes. The pair conducted a survey that enabled SPARK to better determine how the RFP Guide is used by advisers and providers today, and incorporate key changes to make the Guide easier to use, and reflective of the tremendous growth in the scope of products and services offered as part of DC plan support today.

The new SPARK Institute Request for Proposal Guide is available at no cost to SPARK member firms and for $100 to all other organizations.  Copies may be ordered by contacting SPARK at 860-658-5058.

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