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The modern advisor recognizes this and is a champion of client value. They are almost academic in their constant pursuit of knowledge that can enhance their customer relationships, whether it be cultivating product-specific and strategic investment expertise or learning about the dynamics of personal decision making.
There is a strong sense that private investors are also starting to look to qualifications as a signifier of a premium-grade advisor. When determining the credentials of a wealth management business, the training of client-facing employees is the principle signifier sought by clients. Over 60% of investors claim that wealth firms can demonstrate responsibility through the professional qualifications of their advisors.
Clients recognize that qualifications may lead to expertise. They look to them as evidence points because they know they can represent a minimum standard on quality and ethics. What they have not yet fully distinguished are the differences among professional credentials and what each certification signifies. With an “alphabet soup” of qualifications on offer, determining which represent a premium advisor must be a priority.
With an exponential number of regulations governing the wealth management profession, private investors should feel confident that the advisors they work with respect and value ethical standards. However, investors increasingly acknowledge that understanding more about an advisor’s professional qualifications and what he or she offers can help them to determine where minimum standards have been exceeded.
The majority of private investors will ascribe greater significance to an advisor’s designation in years to come. This rises to 90% among investors under the age of 35. Our research indicates that rigorous, comprehensive, and elite qualifications like the CFA charter act as a proof point for investors that an advisor is in a position to provide superior advice to clients.
Furthermore, CFA charterholders overwhelmingly believe that the CFA designation improves their understanding of the issues that distinguish a best-in-class wealth advisor. A significant majority reference that the charter improves their comprehension of investing, wealth management, behavioral finance, delivering recommendations, and client-relationship management.
