UBS beats out Vanguard, Schwab and Northwestern at the top of J.D. Power’s client survey; TIAA, Prudential and LPL get lowest scores

The giant wealth managers marketing their comprehensive financial advice are actually providing that service to just 14% of their clients, according to J.D. Power’s annual study.

More than 4,000 investors who work with a financial advisor spoke with the research firm as part of its 2022 U.S. Full-Service Investor Satisfaction Study, which acts as a client report card for an industry that’s fueled by the recurring revenue of long-term advisory accounts and relationships. UBS, Vanguard, Charles Schwab and Northwestern Mutual finished at the top of this year’s rankings of 18 firms, while TIAA, Prudential and LPL Financial came in at the bottom.

Regardless of the specific positions on the list, though, each of the wealth managers can find areas of improvement in full-bore advice, according to J.D. Power. Only about half (51%) of the clients said they strongly agreed that their advisor provides comprehensive advice that meets all of their wealth management needs. However, just 26% of those clients receive a level of service that J.D. Power defined as comprehensive based on criteria including a documented financial plan, recommendations in a client’s best interest, understanding of their goals and frequent communication. Across the survey, 86% of clients aren’t receiving that level of service.

“When we actually look at experiences and perceptions that they have, they're not really getting comprehensive advice as we understand it,” said Mike Foy, J.D. Power’s senior director of wealth intelligence. “It really points to a big opportunity for the industry to deliver on what I think its implicit or explicit promise is, in terms of providing value to investors.”

The findings carry a direct impact on the firms’ business, from potential regulatory questions under the SEC’s Regulation Best Interest to client retention and growth. Among those currently getting the full-bore advice, 76% of the clients said they would definitely not switch firms in the next year and the group gave their wealth manager a net promoter score of 93. That means they feel a high degree of loyalty to the firm and they’re very likely to recommend it to a friend.

About half of new clients to the average advisory firm come from those referrals, according to industry consultant Gavin Spitzner of Wealth Consulting Partners. Their “satisfaction levels absolutely matter” but, as the survey shows, most clients “don’t know what ‘good’ looks like,” he said in an email.

“Client retention rates have been high and the bar has been low with the long-term bull market lifting all ships and masking poor client experiences and digital capabilities,” Spitzner said. “Firms that demonstrate what good actually looks like and feels like, from holistic, personalized advice to the marriage of great advisors and great technology, will not only retain their existing clients, but will generate more quality referrals and convert more clients — both advised and non-advised today — at the expense of those that are complacent.”

J.D. Power spoke with 4,396 investors between November and January to compile the firms’ satisfaction scores and rankings. Each of the investors said they are clients to a financial advisor or a team of advisors.

Only firms with at least 100 clients in the sample end up in the public rankings from the survey, which is in its 20th year. To get a “satisfaction index” for each wealth manager on a 1,000-point scale, J.D. Power used seven weighted factors: “trust; people; products and services; value for fees; ability to manage wealth how and when I want; problem resolution; and digital channels.”

For results from prior years, see our slideshows from 2021, 2020, 2019 and 2018. To see this year’s rankings, scroll down our slideshow.

18. TIAA

TIAA offices insurer
2022 ranking: 18
2021 ranking: 12
2022 score (on 1,000-point scale): 703
2021 score: 732
2022 vs. 2021: (29)

17. Prudential

The move from Prudential would expand PGIM's capabilities beyond mutual funds and target-date funds.
2022 ranking: 17
2021 ranking: 19
2022 score (on 1,000-point scale): 716
2021 score: 650
2022 vs. 2021: 66

16. LPL Financial

lpl-financial
2022 ranking: 16
2021 ranking: 8
2022 score (on 1,000-point scale): 719
2021 score: 740
2022 vs. 2021: (21)

15. PNC Investments

pnc-357.jpg
2022 ranking: 15
2021 ranking: N/A
2022 score (on 1,000-point scale): 722
2021 score: N/A

14. Citigroup

Citigroup Citi
2022 ranking: 14
2021 ranking: N/A
2022 score (on 1,000-point scale): 729
2021 score: N/A

13. J.P. Morgan Wealth Management

Close up of signage stands on display outside the JPMorgan & Chase Tower in downtown Chicago, Oct. 7, 2017
2022 ranking: 13
2021 ranking: 9
2022 score (on 1,000-point scale): 738
2021 score: 738
2022 vs. 2021: 0

12. Wells Fargo Advisors

Wells Fargo V3 by Bloomberg News
2022 ranking: 12
2021 ranking: 16
2022 score (on 1,000-point scale): 740
2021 score: 714
2022 vs. 2021: 26

11. Raymond James

Raymond James
2022 ranking: 11
2021 ranking: 15
2022 score (on 1,000-point scale): 742
2021 score: 721
2022 vs. 2021: 21

Average industry score

2022 industry average score (on 1,000-point scale): 744
2021 industry average score: 732
2021 vs. 2020: 12
Firm with largest increase: Prudential (66)
Firm with largest decrease: TIAA (29)

9. (tie) Edward Jones

Edward-Jones
2022 ranking: 9
2021 ranking: 1
2022 score (on 1,000-point scale): 746
2021 score: 770
2022 vs. 2021: (24)

9. (tie) Ameriprise

Ameriprise financial bloomberg
2022 ranking: 9
2021 ranking: 6
2022 score (on 1,000-point scale): 746
2021 score: 746
2022 vs. 2021: 0

8. Merrill

Merrill-Lynch-sign-Bloomberg-News
2022 ranking: 8
2021 ranking: 17
2022 score (on 1,000-point scale): 747
2021 score: 708
2022 vs. 2021: 39

7. Fidelity Investments

fidelity
2022 ranking: 7
2021 ranking: 3
2022 score (on 1,000-point scale): 748
2021 score: 751
2022 vs. 2021: (3)

5. (tie) Stifel Financial

Stifel-slideshow-size
2022 ranking: 5
2021 ranking: 2
2022 score (on 1,000-point scale): 752
2021 score: 760
2022 vs. 2021: (8)

5. (tie) Morgan Stanley

morgan-stanley-hq.jpg
2022 ranking: 5
2021 ranking: 7
2022 score (on 1,000-point scale): 752
2021 score: 744
2022 vs. 2021: 8

3. (tie) Northwestern Mutual

Northwestern Mutual
2022 ranking: 3
2021 ranking: 12
2022 score (on 1,000-point scale): 753
2021 score: 732
2022 vs. 2021: 21

3. (tie) Charles Schwab

Charles-Schwab-060518
2022 ranking: 3
2021 ranking: 10
2022 score (on 1,000-point scale): 753
2021 score: 735
2022 vs. 2021: 18

2. Vanguard

vanguard-real-estate-logo
2022 ranking: 2
2021 ranking: 10
2022 score (on 1,000-point scale): 759
2021 score: 735
2022 vs. 2021: 24

1. UBS

UBS-slideshow-size
2022 ranking: 1
2021 ranking: 3
2022 score (on 1,000-point scale): 777
2021 score: 751
2022 vs. 2021: 26
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