J.D. Power Names Top 5 Firms With Highest Financial Adviser Satisfaction Ratings

Stifel Financial Corp. ranked highest in overall satisfaction among employee advisers, while Commonwealth Financial Group Inc. placed first among independent advisers in satisfaction, according to the J.D. Power 2024 U.S. Financial Advisor Satisfaction Study released Tuesday.

The annual study measures the satisfaction of more than 4,000 financial advisers based on factors including compensation, leadership and culture, operational support, products and marketing and professional development and technology.

The overall adviser satisfaction index ranking, based on a 1,000-point scale, is as follows:

Employee Advisers Satisfaction  

1. Stifel: 767
2. Raymond James & Associates: 750
3. Edward Jones: 740
4. Merrill Lynch: 657
5. Wells Fargo Advisors: 563

Independent Advisers Satisfaction

1. Commonwealth: 819
2. Raymond James Financial Services: 694
3. Cambridge: 676
4. Ameriprise: 641
5. LPL Financial: 617

This year, independent adviser satisfaction fell, and employee adviser satisfaction increased, J.D. Power reported.

Employee adviser satisfaction jumped by 49 points to 637 in the past year; the total satisfaction score among independent advisers, on the other hand, decreased by 15 points to 611. According to J.D. Power, the finding is notable, as independent adviser satisfaction ratings have typically been higher than those of employee advisers. 

In the past year, major gains by employee advisers were due to significant enhancements in compensation-related metrics, perceptions of technology and quality of support, according to the study. 

Meanwhile, satisfaction with independent advisers decreased due to leadership-related reasons. The percentage of advisers who “strongly agree” that their company is moving in the correct direction has significantly decreased, to 46% in 2024 from 54% in 2023.

The employee-adviser segment has tended to be rather stable from an organizational standpoint in recent years, with limited mergers and acquisitions or other large company changes that tend to be disruptive to advisers, says Craig Martin, J.D. Power’s executive managing director and global head of wealth and lending intelligence. On the independent side, several firms have gone through major changes, including acquisitions, expansions and rebranding.

“M&A events can lead to a level of consternation among those acquired because they aren’t choosing to change,” says Martin. “At the same time, these events can also have a negative impact on existing advisers, as the resources and support are now shared with a larger workforce that can negatively impact service levels.”   

When comparing advisers who were willing to stay with their company with those who wanted to leave, the biggest discrepancy was in how they scored business culture and leadership. The survey found that 34% of employee advisers and 41% of independent advisers who are more than two years away from retirement indicated they might leave their current company in the next year or two. 

Furthermore, intended attrition does appear to translate to real attrition, as J.D. Power revealed half of the advisers who stated in 2021 that they “definitely will not” or “probably will not” be at the same company in one to two years had left by 2024.

To improve business culture and leadership, Martin recommends that companies ensure that there is empowered and effective leadership at multiple levels.

“Executive leaders can’t do it all, so it’s vital that at each level there is confidence in the respective management team,” he says. “Having leaders that are empowered to help address those challenges and a culture that encourages constructive feedback is key.”

Martin also suggests providing consistent and transparent communication. He says leaders are often so deeply entrenched in the decisionmaking process that they fail to recognize that all parties may not be fully informed.

“A good example of this is technology, where major investments are made to upgrade systems with the best of intentions; the challenge is that, often, the end user only knows what they are experiencing in the moment, and the benefits aren’t as clear,” he says. “It’s vital to not just explain what is happening, but to also ensure clarity on the how and why of the actions being taken.”  

The study was conducted from January through May and based on replies from 4,072 independent and employee financial advisers.