Fiduciary relationships pay off for advisors to the affluent: Cerulli

New research from Cerulli Associates suggests that clients who trust their financial advisor always acts in their best interests were significantly more likely to stay loyal, reinforcing the business rationale for adopting a fiduciary standard.

In its 2025 edition of "The Cerulli Report – U.S. Retail Investor Solutions" research, the firm found that seven in ten affluent investors expressed confidence that their primary provider was obligated to act as a fiduciary at all times.

That perception appeared to influence client satisfaction directly: 70 percent of those investors said they were satisfied with their advisor relationship and were not seeking alternatives. By contrast, only 41 percent of investors who thought their provider might prioritize firm interests first reported a comparable level of satisfaction.

“Of course, this goes both ways, with individuals who believe firms can prioritize their own interests most likely to be open to a new provider. Still, the key implication remains the same: clients who are confident that they are in a fiduciary relationship are less interested in new providers,” Scott Smith, senior director at Cerulli, said in a statement.

The findings come as wealth management firms navigate rising client expectations around service personalization, transparency, and ethical standards. Cerulli’s research encouraged firms to align strategies and incentives with fiduciary principles in order to improve client retention.

Most affluent investors surveyed by Cerulli said they felt confident they were in fiduciary relationships. Only 15 percent indicated their provider might sometimes act in a fiduciary capacity. The report noted that clients engaged through banking deposit relationships were more likely to recognize that shareholder interests could come first – particularly outside of formal advisory contexts.

“When considering their platform offerings, it is essential that providers embrace the spirit of their role as fiduciaries. Every product and service on the platform represents the provider, with the firm’s reputation ultimately tied to the least satisfactory client experiences,” Smith added.

The report also examined broader engagement preferences. Among affluent households, 80 percent said it is important to have access to a human advisor when needed, even if they typically managed investments independently. That preference was strongest among households with over $5 million in assets – where 85 percent agreed having a human advisor on call is crucial – and those in their 60s, many of whom were adjusting to the early stages of retirement.

Cerulli’s segmentation of advice usage showed that 47 percent of affluent investors actively relied on advice services, whether through collaboration or full outsourcing. An additional 24 percent fell into the “incremental advice” segment – indicating potential for further engagement under the right circumstances.

For firms that had not developed a full-service wealth management offering, Cerulli recommended partnering with third-party providers or white-labeling external services to meet rising expectations without overextending internal capabilities.