Downturn has changed the way most advisers do business, survey indicates

Although advisers are all over the map when it comes to predicting the longevity of the economic downturn, most have adjusted the way they do business because of it, according to a recent industry survey. Fifty-seven percent of advisers indicated that the crisis had had a “large impact” on their business. A full 60% said they had met or spoken more frequently with clients to help them manage their investments, according to the survey, released by Phoenix Marketing International of Rhinebeck, N.Y. Also, 46% of advisers were recommending different products than they had previously. These products were generally more conservative, the survey found. A full 22% of the advisers strongly agreed that the financial crisis would continue for five years, while 17% of respondents said they expected the crisis to be resolved this year. More than a third — 33% — of advisers strongly agreed that the quality of life for Americans would be adversely affected for the long term, while 51% were neutral on the question, and 15% strongly disagreed. The firm conducted the online survey — of 898 advisers — in May and June. It included advisers from all channels, including broker-dealers, banks, insurance, independents and registered investment advisers working for small firms.