How we did it: Brokerage Report Card

Participants provided two ratings for their firm’s services, one for performance and the other for importance, on a scale of zero to 10. A rating of zero means “very poor” or “unimportant,” while a rating of 10 signifies “excellent” or “critically important.” Advisors were asked to provide ratings only for services with which they had direct experience.  

All respondents were registered, full-time investment advisors, had worked with their firm for at least one year, had worked in the industry for at least three years.

The Report Card series isn’t an awards program or contest, and it isn’t a ranking exercise. It doesn’t base inclusion or results on sales activity, revenue or assets. The project is editorial-driven research based on sentiment, aggregate data and a rigorous methodology.  

IE removed one category compared with past years: “diversity, equity & inclusion policies.” The new category is “diversity, equity & inclusion practices,” with advisors asked to reflect on the actions and hiring practices they see at their firms. This category’s results do not objectively measure a firm’s DE&I approach and policies; it’s based on advisors’ experiences and sentiment.  

Other category names were edited for clarity without affecting year-over-year comparison. 

Advisors also are asked two supplemental questions each year. This year, respondents were asked: 1) whether their advisor team had grown within the past year, if they worked on a team with licensed advisors; or, whether they planned to join or form a team of licensed advisors, if they worked independently 2) to rate, on an ascending scale of zero to 10 where five meant neutral/unsure, whether their brokerage was making sufficient efforts to increase security and combat cyberattacks. 

This article appears in the June issue of Investment Executive. Subscribe to the print edition, read the digital edition or read the articles online.