Investor confidence in their advice providers’ fiduciary commitment has grown substantially; however, 40% of affluent investors remain skeptical, according to the latest Cerulli Edge—U.S. Retail Investor Edition.

Over the last 10 years, the share of affluent investors who believe that financial providers are dedicated to placing clients’ interests ahead of their own has grown significantly. In 2014, just 39% of respondents agreed with the statement, “I trust that financial services firms are looking out for my best interests.” As of 2Q 2024, this figure has increased to 60%.

When considered through the lenses of age and wealth, levels of trust expressed by affluent respondents are consistent. Within all investable asset level cohorts of investors under age 70, between 56% and 60% of respondents trust that providers are working on their behalf, and 65% of investors age 70 and older agree. “This likely is an outcome of these older respondents benefitting from their long-term advisory relationships—they have enjoyed a prosperous retirement, which they attribute to the trustworthiness of their providers,” comments Scott Smith, director.

On a channel level, those with the highest incidence of dedicated advisor relationships, from private banks (75%) to full-service advisory firms (65%), boast client trust figures far higher than channels in which dedicated advisory relationships are the exception.

“These results reinforce investors’ preference and increased satisfaction when they are able to develop and maintain ongoing relationships with advisors whom they believe understand their unique circumstances and preferences in pursuit of their goals, thereby earning heightened confidence in their loyalty,” says Smith.

Although 40% of affluent respondents are skeptical about whether financial firms look out for their best interests, this skepticism can be remedied through their advisor relationship. Advisors can position themselves as trustworthy partners in financial success, even among wary investors. Advisors have control over how much contact they have with their clients, and how they deliver financial information at the outset can be a key bridge to skeptical clients.

“How advisors communicate with their clients will significantly influence whether clients trust them with their investments. Understanding the methods clients prefer—in-person or online—can serve as a conduit toward earning their trust. Once that base level of trust is established, advisors can discuss product recommendations that are in keeping with clients’ financial plans,” he concludes.