The economic crisis has financial advisors most apt to recommend firms viewed as ethical and trustworthy, according to a survey of U.S. advisors in released Tuesday.

The survey was conducted this past November by Phoenix Marketing International, a research company based in Rhinebeck, New York.

It shows how advisors evaluate financial services firms offering investment and insurance products, advisors’ likelihood to recommend these firms to their clients, and critical information needed by their clients.

Given the continuing economic turmoil, “Advisors consider it most important that financial services firms conduct business with the highest ethical standards, and are perceived as companies their clients can trust. Consistency of product performance and strong industry ratings are also highly valued,” stated Sarah Thompson, Phoenix VP managing the semi-annual study.

The Phoenix study shows that American Funds, Vanguard, John Hancock, Franklin Templeton, and Fidelity command the most favorable overall impression among firms well known to advisors. John Hancock, Prudential, Vanguard, and MetLife are leaders among the most important criteria for advisors when recommending a brand to their clients.

Phoenix reports that 57% of advisors indicated the impact of the economic crisis on their business has been negative, while approximately one-third reported no impact to date, and 11% view the crisis as having a favorable impact on their business.

Although advisors are generally more pessimistic than optimistic about the economic environment, Phoenix results suggest that the turmoil has provided an opportunity for advisors as the majority indicated that they have had more contact than usual with their clients as a result and this has helped with relationship building.

The study was conducted among 950 U.S. financial advisors who sell securities, retirement services, and/or insurance products.

IE