Adviser satisfaction with service provided by DFM providers is growing, but leaves room for improvement

09 July 2019

Are financial advisers satisfied with the service they receive? What areas of service are actually important to them? We asked advisers like you for their opinion, and compared the results to previous years. Here’s what we learnt.

Our latest DFM satisfaction study provides financial advisers with insight to help them benchmark their own personal experiences of DFMs with those of their peers, enabling them to select partners with service as one of their research criteria.

What did we ask advisers?

With 14 service disciplines, ranging from the ease of doing business to renumeration and provider brand, advisers first assessed their importance, using a five-point scale from ‘not at all important’ through to ‘very important’. From this, we calculated the perceived importance of each of these individual aspects of service.

After confirming which DFMs advisers currently use, we asked them about their preferred DFMs and measured their satisfaction levels with those preferred providers (from very dissatisfied through to very satisfied).

Reversing the worrying trend

Last year we reported that only four out of the top seven categories in terms of importance were meeting or exceeding adviser expectations, and that this was a worrying trend that needed to be addressed.

This year, adviser satisfaction has improved in all but one of the 14 categories, reversing the worrying trend from last year. Top of the adviser importance league is the quality of staff – investment. While still falling short of expectations, this category has seen one of the most significant improvements.

The study also revealed that although down on last year, there is still a significant amount of investment business done on an advisory basis. This is split 60% multi-asset, to 40% single asset portfolios.

Firms should be mindful

Despite the encouraging trend of rising satisfaction, four out of the top five categories in terms of importance still fail to meet adviser satisfaction expectations. Discretionary managers should continue to strive for improvement, particularly in the areas that advisers find most important.

“Advisers are getting more demanding in their service expectations and while discretionary firms are certainly improving, there’s still work to be done” Pan Andreas, Head of Insight & Consulting (Funds & DFM) explains. “Four out of the top five categories in terms of importance still fail to meet adviser satisfaction expectations. These results should serve as a warning that firms should be mindful of adviser requirements and not become complacent,” he adds.

Interested in learning more?

For more details, including the individual satisfaction scores, download our 2019 DFM satisfaction study 2019 for free here.

About Service Ratings

We use the results of the survey to rate providers Gold, Silver or Bronze based on their overall satisfaction score. These Service Ratings help advisers in choosing the appropriate provider partners for them as they are fully based on the feedback we receive. They are available to view and use within Defaqto Engage, our end-to-end financial planning solution.

You can learn more about Engage Core, our end-to-end financial planning tool, and request a demonstration, here.

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