More U.S. investors feel positively toward the securities industry this year than in 2002 and 2003, according to the annual Securities Industry Association Investor Survey.

The survey, released today at the SIA annual conference in Boca Raton, Fla. reports that 64% of investors expressed favorable opinions of the industry, a rebound from 55% in 2002 and 2003. However, the industry’s rating remains below levels it enjoyed in the period 1997-2001.

According to the survey, respondents remain satisfied with the quality of services they receive from their broker. As in 2003, nine in 10 investors responded that they were either “very” or “somewhat satisfied” with their investment professional. Seventh-one per cent believe that these services are a “good value for the money,” down a little from last year’s 74%.

Brokers continued to be especially praised for offering “easy access to account information” (92% of respondents selected “excellent” or “good” job), “prompt return of phone calls” (83%), and “friendly and helpful” service (84%).

Brokers continued to receive high percentages of favorable ratings for:

    keeping their clients “regularly informed” about their investments’ performance (74%);

  • maintaining a “track record of strong performance” (74%); and
  • helping clients develop an overall strategy and asset allocation (70%).

    However, fewer respondents said their advisers were doing an “excellent” or “good job” of teaching them “how to make better investment decisions.” This measure dropped from 59% to 54%.

    The majority of respondents believe that the regulations adopted recently will curb abuses in the securities industry. The survey found, 57% confident that these will reduce instances of wrongdoing, compared with 48% in 2003.

    Also, 41% of respondents were satisfied with the performance of their investments in 2004, an increase of six percentage points from 2003’s results.

    The vast majority of respondents (84%) continue to look to the securities industry to do more to educate them about how to make good investments. When asked what areas they would like to know more about, the most requested topics were: “information about different types of investments”; “the risk involved in different investments”; and, “what fees and expenses are related to my investments”.


    “Our survey shows improved satisfaction with the industry and the services it provides,” said SIA chairman Richard Thornburgh, vice chairman of Credit Suisse First Boston. “We believe that the industry has made progress in addressing investor concerns, and we recognize that there is more to be done.”

    The study was conducted via telephone between August 2 and September 7. The sample consisted of investors 18 years or older with household incomes of US$50,000 or more and investable assets of US$100,000 or more (not including a home). The sampling error is plus or minus 2%.