Financial advisors trusted more than family

New survey reveals that those with ultra-high net worth actually have more faith in their advisors than their relatives

Financial advisors trusted more than family
There may have been a handful of negative stories in and around the financial advice sector in recent times, but that doesn’t mean that investors have lost faith.

According to a new study by Morgan Stanley Private Wealth Management and Campden Wealth Research, those with ultra-high net worth actually have more faith in their financial advisors than they do in even their own family.

The results of the survey show that UHNW investors actually use a financial advisor 41 per cent of the time when considering asset allocation: with a family advisor or family office executive used 38 per cent of the time.

This compares favorably to committees of family members, who are only turned to in 32 per cent of the cases listed. Meanwhile, the head of the family has sole discretion just 21 per cent of the time.

In addition, the survey goes on to explain that financial advisors gain even more trust when referring to specific opportunities – they are trusted in 44 per cent of cases, compared to the head of a family having sole discretion in just 24 per cent of cases.

In a press release, David Bokman, the head of ultra-high net worth resources at Morgan Stanley, outlined that financial advisors have a key role to play in family decisions and enjoy special relationships with 89 per cent of those polled stating that their advisors had at least some influence over their attempts to attain their goals.

“The fact that ultra-high net worth individuals appear to listen more to their financial advisors than their own family members shows the premium placed on good, professional investment advice,” he said.