Two years after crash, wealthy still leery of financial advisers

In 2009, only 59% of the millionaires said they had regained trust in their financial advisers, while 56% said they had the same feelings about their wealth management firms and financial institutions.
JUL 01, 2010
Though improving, rich investors’ trust and confidence in their advisers and financial institutions still lags far behind what it was before the credit crisis and the stock market free fall of September 2008, according to an annual report on the world’s millionaires. In 2009, only 59% of the millionaires surveyed for the Capgemini World Wealth Report said they had regained trust in their financial advisers, while 56% said they had the same feelings about their wealth management firms and financial institutions. Granted, that represents an improvement from 2008, when 46% of millionaires said they had lost trust in their main adviser, and an equal percentage in their wealth management firm. But the percentages are still far below levels seen before the credit crisis, said Bertrand Lavayssiere, managing director of global financial services at Capgemini. Typically, those years would have seen 85% of surveyed millionaires express trust and confidence in their adviser, and about 80% feel the same way towards their financial institution, said Mr. Lavayssiere, who spoke on Tuesday morning in Manhattan at a meeting about the report, which is produced along with Merrill Lynch Wealth Management. Rich investors remain anxious about investing, he noted. “Volatility is still there, and yields are not back. There are still a lot of question marks.” Millionaires may still have uneasy sentiment toward advisers and their firms, but the rich as a whole are doing far better. Their global ranks swelled 17.1% last year, reaching 10 million. That’s about 100,000 fewer than in 2007.

Latest News

Bluespring Wealth builds $1B team with Family Wealth Counseling deal
Bluespring Wealth builds $1B team with Family Wealth Counseling deal

The Kestra-owned RIA acquirer merges the planning firm into KDI Wealth Management, creating a majority woman-led advisor team

Gen X and millennials are rethinking retirement as pensions disappear
Gen X and millennials are rethinking retirement as pensions disappear

Eight in 10 pre-retirees say the US retirement system wasn't built for them and most still haven't planned how to make their money last.

Cerulli: Advisors struggle to turn 401(k) savers into wealth clients
Cerulli: Advisors struggle to turn 401(k) savers into wealth clients

Just over 10% of advisors' wealth clients come from defined contribution plans, as capacity, data and technology gaps block the bridge to wealth

Alto to buy Forge Trust from Schwab in self-directed IRA push
Alto to buy Forge Trust from Schwab in self-directed IRA push

Deal creates a $20B-plus custody platform for private market investing in IRAs, months after Schwab closed its Forge Global purchase

Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report
Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report

Despite the good times, advisors should tread carefully, said one veteran industry executive.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor