ByAllAccounts’ Survey Reveals Why Investors Hire, Fire Financial Advisors

Co-sponsored by Paladin Registry, Survey Illuminates Challenges, Opportunities for Financial Professionals

BOSTON – February 1, 2012 – More than 60 percent of affluent investors are considering firing their financial advisor within the next twelve months. This startling statistic is among those found in the “Why Investors Hire and Fire Financial Advisors” survey conducted by ByAllAccounts, Inc., the financial advisor’s choice for account aggregation, in conjunction with the Paladin Registry of Financial Professionals. The national survey of more than 195 affluent investors was designed to gain a better understanding of how they form and maintain relationships with their financial advisors.

“While it is cause for concern that so many of the survey respondents are considering leaving their financial professional, it also creates a considerable opportunity,” said ByAllAccounts Vice President of Marketing Cynthia Stephens. “Some of the other results of the survey indicate that there are tangible ways that advisors can better serve their clients, build their relationships and establish lifetime loyalty.”

The survey found one way to build customer loyalty was by taking a holistic approach to managing clients’ assets. More than 60 percent of investors said their advisor provides a holistic/comprehensive view of all of their assets (i.e. 401(k), 403(b), 529, pension, IRA, trusts, annuities and taxable savings accounts.) Those investors were more likely to:

• Be satisfied with the level of service they’re receiving (98.3% of clients receiving a holistic view, versus 69.2% not given a holistic view)
• Give their advisors a referral (54.2% of clients receiving a holistic view, versus 33.3% not given a holistic view)
• Retain their advisor in 2012 (85% of clients receiving a holistic view, versus 15% not given a holistic view)

“The number of dissatisfied investors is unusually high, but I am not surprised,” said Jack Waymire, co-founder of Paladin Associates. “Most investors are still winning back losses from 2008, and 2011 was not a very productive performance year. Based on the survey's results, financial advisors should develop additional strategies that maximize value for their clients. The most successful advisors will focus on improving performance, managing risk, controlling expenses, and providing high quality communications that keep their clients fully informed.”

The key takeaways from the survey for financial advisors who want to retain and increase their number of affluent clients are to:

• Ask for referrals
• Provide existing clients with a holistic view of all their assets to increase referrals, loyalty and client satisfaction
• Create an online presence so investors can find you
• Make sure your website illustrates your experience, investment philosophy, ethics, and the types of services you provide

Leslie Swid

Impact Communications

913 649-5009

leslieswid@impactcommunications.org

About the survey

ByAllAccounts and Paladin Registry conducted a national online survey in December 2011.  The findings presented are based on aggregated responses from more than 195 investors.  To download an executive summary of the ByAllAccounts survey, please visit http://discover.byallaccounts.com/HNWInvestorSurveyREG.html.

Upcoming Webinar

For a more in-depth analysis of the results, ByAllAccounts and Paladin Registry will be hosting a webinar on March 1stat 2 PM EST. To register, please visit http://discover.byallaccounts.com/HireFireWebinarREG.html

About ByAllAccounts, Inc.

ByAllAccounts, the financial advisors’ choice for account aggregation since 1999, is the only service that retrieves, enriches and consolidates reconciliation-ready account data from any custodian. ByAllAccounts’ patented aggregation engine, through which hundreds of billions in assets flow daily, aggregates all client account data -- from any source -- within an advisor’s wealth management platform or trust accounting system for a truly comprehensive view. Thousands of advisors rely on ByAllAccounts to save administrative time and costs, mitigate risk associated with having incomplete information and grow revenues through client referrals and new business development. ByAllAccounts integrates seamlessly with all of the most popular wealth management platforms. For more information, visit www.byallaccounts.com.

About the Paladin Registry for Financial Professionals

Paladin has matched investors to pre-screened financial advisors who practice full disclosure since 2003. Paladin gathers data from advisors and produces professional profiles that document advisor credentials, ethics, and business practices. The profiles are provided to investors who use the Registry's online services to find, evaluate, and select financial planners, investment advisors, and money managers. For more information, visit Paladin’s website at www.PaladinRegistry.com.

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