7/31/2019 Industry Attitudes

1/7

7/31/2019 Industry Attitudes

2/7

KEY FINDINGS

Survey period: October 2012Total number of qualified respondents: 513

SECTION I: ADVISERS

One-fifth advisers manage between $50M-$99.9M in assets. More than half of advisers are compensated for their services by both fees and commissions. 84.5% of advisers are men 15.5% are women.

o Nearly 70% of female advisers made a career switch into the financial advice business, while only half of male advi 60.1% of advisers are between the ages of 50 and 69. More than 90% of advisers are white. 80% of advisers are married.

Nearly three-fourths of advisers identify with an organized religion. More than half of advisers donate 1%-5% of their gross income to charity. Three out of four advisers have clients to whom they provide pro-bono financial advice. 82% of advisers have not served in the military. Half of advisers are Republican. More than 70% of advisers plan to vote for Mitt Romney in the November 2012 presidential election. 72% of advisers have not changed broker-dealers in the last 12 months. 52% of advisers made a career switch into the financial advice business, and two-thirds of them are satisfied with the

adviser. Nearly 40% of advisers say their favorite investment guru is Warren Buffett.

SECTION II: FIRMS

Nearly 60% of advisers do not have a niche practice. The two factors that will most hinder business growth in 2013: economic uncertainty and increased regulation and complian The two factors that will most likely contribute to business growth in 2013: adding new clients and an improved economy. Spending in 2013

Increase Decrease No change N/A

Compliance 34.0% 0.7% 56.9% 8.4%Technology 56.2% 1.3% 38.0% 4.4%

Recruitment 22.7% 1.1% 46.2% 30.0%

Marketing 52.9% 2.2% 39.8% 5.1%

Training 34.0% 1.6% 55.8% 8.7%

Based on 450 responses More than 40% of advisers said the most strategic business initiative for 2013 is increasing referrals

7/31/2019 Industry Attitudes

3/7

o Quarterly chair massages, lunches out, pedicures (for female staff), flowers on birthdays.o Birthdays off and Friday afternoons offo Pets in the officeo Education reimbursement, full pmt for health insurance for all family members, snacks and drinks in our kitchen

funding our PS plan in full not just 401ko I pay for my staff to take yoga classes and I send them on small vacation with their spouses every year.

SECTION III: CLIENTS

82.1% of advisers said the average age of their clients falls between 50 and 69. A quarter of advisers manage clients with an average amount of investable assets between $300K-$499K.

o More than a third of reps at wirehouses said the average amount of their investable client assets is at least $900K. 56.2% of advisers said more than half of their clients came through referrals. More than half of advisers said clients communicate most with them by telephone. Over the course of their career, more than a third of advisers lost clients due to relocation

o However, for nearly 40% of reps affiliated with an independent broker-dealer, the reason they lost most of thecommunication.

SECTION IV: POLITICS

Industry scorecardExcellent Fair Poor

Mary Schapiro's performance as SEC chairman 5.6% 52.4% 42.0%Obama Administration's performance regarding theeconomy 8.3% 18.8% 72.9%

Congress performance regarding the economy 0.7% 10.5% 88.8%Ben Bernanke and the Fed's performanceregarding the economy 20.7% 52.4% 26.8%

Treasury Secretary Timothy Geithner'sperformance regarding the economy 7.8% 43.7% 48.5%

Based on 410 responses More than 60% of advisers believe that a new fiduciary standard would not affect their business Nearly half of advisers think the SEC should regulate large advisers and states should regulate small advisers. 56% of advisers believe the Bush-era tax cuts will expire. About 40% of advisers have been audited in the last 12 months. Nearly 70% of advisers think hedge funds should not be allowed to advertise to the general public.

7/31/2019 Industry Attitudes

4/7

7/31/2019 Industry Attitudes

5/7

7/31/2019 Industry Attitudes

6/7

7/31/2019 Industry Attitudes

7/7