7 signs clients look for in trusted advisers

You must become the point of inspiration for moral, ethical and prudent decision-making.
MAY 05, 2015
Survey after survey have revealed that the vast majority of investors do not know the difference between fiduciary and suitability standards — nor do they care. What they care about is whether or not they can trust their financial adviser. So important is trust, it has become the new currency of Wall Street. (Related read: 7 signs the fiduciary movement is ending) So what are the 7 signs clients want to see before you become their trusted adviser? 1. Character. Clients want to see evidence that you have a framework for managing moral and ethical dilemmas, and that this framework is manifested through your behavior. How you treat your clients should be the same way you treat your family, friends and staff. 2. Competence. Clients want to see that you are committed to lifelong learning and attentive to changes in the industry and to the introduction of new products, services and technologies. 3. Courage. Clients want to know that you are a person of integrity — that you are both honest and courageous. It's not enough to say that you do not lie, cheat or steal — you must also demonstrate that you will not associate with or tolerate those who do. 4. Purpose. Clients want to know that you're responding to a higher calling, and that you've been drawn to serve others. 5. Passion. Clients want to see that you love your work, the people you work with and the people you serve. Love is a critical component of trust, because clients can sense when you are coming from a genuine place. 6. Process. Clients want to know that you are consistently applying a decision-making process that is inclusive of industry best practices and that you are persistent in the pursuit of excellence. 7. Leadership. Clients want to view you as a leader. Leadership is the one sign that embodies the other six, for if you have a shortfall in character, competence, courage, purpose, passion or process, you likely will not be viewed as a leader. (More: The financial industry needs real leaders) To be a trusted adviser, you must become the point of inspiration for moral, ethical and prudent decision-making. You must make your life and work meaningful so that you can be of service to others. Don Trone, Mary Lou Wattman and Steve Branham, are the co-founders of 3ethos, whose research and training programs are focused on the intersection between leadership, stewardship and governance.

Latest News

Retirement delays, Social Security fears prompt advisors to rethink income strategies
Retirement delays, Social Security fears prompt advisors to rethink income strategies

Concerns about outliving savings and healthcare costs are reshaping how "Peak 65" Americans and advisors approach income planning.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut
RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut

Modern Wealth's latest deal for a California-based fee-only RIA marks its fourth acquisition of 2025.

Empower defends private market access in 401(k)s in response to Warren scrutiny
Empower defends private market access in 401(k)s in response to Warren scrutiny

Sen. Warren has warned of private market investment risks due to opacity, illiquidity, and past regulatory issues.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.