Investors trust their financial advisor more than any other institutional professional, including their primary doctor or their accountant, according to the John Hancock Trust Survey.
The 2012 survey found that of the 1,005 investors surveyed, 84% reported they “trust strongly” their financial advisor, while primary doctors were only “strongly trusted” by 79% of those surveyed and accountants by 74%.
Contractors had a 52% “trust strongly” ranking, with bosses coming in at 49% and real estate agents at 43%.
The two most important factors in advisor trust were clear investment recommendations and being knowledgeable and timely about trends and products. Letting the investor know how much the advisor would be compensated was also an important factor in building trust, according to the survey.
“Clearly, investors value excellent communication skills and product knowledge, and depend on these factors in assessing their level of trust in their advisors,” Chief Marketing Officer David Longfritz said.
The survey also showed that 12% of investors factor in if the advisor is involved in the local community and how informative their website is into determining their trust.
At 25%, being hard to contact or unresponsive was the most common reason for lack of trust in a financial advisor while bad investment advice (13%) and a lack of personalized approach (12%) followed.