Financial Advisers Feeling Starved of Time with Clients, J.D. Power Reports

About one out of four financial advisers report not having enough time to work with their clients, according to J.D. Power’s 2023 U.S. Financial Adviser Satisfaction Study.

Among more than 4,000 financial advisers surveyed by the research firm, 28% said they did not have enough time to spend with clients, with 41% of that set noting they spend more time each month on non-value-added tasks, such as compliance and administrative duties, than their peers.

“Right now, many advisers are struggling to find the time to deliver the level of hands-on service they know is critical to growing their business,” Craig Martin, executive managing director and head of wealth and lending intelligence at J.D. Power, said in a statement. “They’re spending more time on administrative and compliance-oriented tasks and, in many cases, they are starting to question whether their firm is committed to providing them with the support and resources they need to succeed.”

As retirement plan advisement and wealth management converge, more financial advisers are being sought to supplement workplace retirement plan advisories, according to those in the industry. But according to J.D. Power’s report, lack of time for clients, as well as many advisers’ pending retirements, may be further crimping the long-term success of the industry.

According to J.D. Power, 20% of the surveyed advisers—who have an average age of 56 years old—report being five years or less away from retirement. A significant portion of employee advisers (30%) and independent advisers (28%) reported they “probably will” rather than “definitely will” work for their current firm in the next one to two years.

“This suggests that even if advisers are not contemplating leaving the industry or their firm, many may become apathetic about their situation,” the researchers wrote.  

The top reasons given for staying at a firm were strong culture and company leadership, as reported by advisers most likely to stay with their firm long term. Other key factors included professional development support, training and technology.

Notably, female employee advisers’ overall satisfaction (637) and net promoter score (59) were significantly higher than their male counterpart’s satisfaction (578) and NPS (36). The overall satisfaction was measured on a 1000-point scale, while the net promoter score is measured on a 100-point scale.

When it came to employers, the results of the overall adviser satisfaction index ranking placed Stifel Financial Corp. (777), Raymond James & Associates Inc. (711), and Edward Jones (672) in the top three. Those firms were followed by RBC Wealth Management (669), Ameriprise Financial (660), Merrill, which is owned by Bank of America Corp., (610), Morgan Stanley (580), and Wells Fargo Advisors, a subsidiary of Wells Fargo & Co. (407).

Net promoter scores measure adviser advocacy on a scale from -100 to 100. Among advisers who say they do not have enough time with clients, employee advisers’ NPS were 27 points lower, while independent advisers’ scores were 30 points lower, compared to advisers who said they did have sufficient time.

J.D. Power’s study is based on responses from 4,183 employees and independent financial advisers; it was fielded from December 2022 through April 2023.