Half of high net worth investors agree that financial advisers are experts in their field and 70 per cent would recommend their adviser to their fellow investors, data from CoreData has revealed.
However, nearly a fifth believe their adviser tends to “over-engineer the advice process” and often use too many technical terms.
The new report by CoreData, which examined the relationship between HNW investors and advisers, also revealed that 66.9 per cent believe advisers can provide guidance around how to look after and grow their wealth. A similar number say they are loyal to their appointed adviser.
Around 44.3 per cent say they turn to advisers when looking for new investment ideas.
The data also revealed that 41.1 per cent of HNW individuals have an adviser, while 52.2 per cent use advisers intermittently.
Craig Phillips, head of UK and Europe at CoreData, says: “The research finds that female HNWs place greater trust in financial advisers than their male counterparts. This is also the case among older investors who also profess high levels of trust in their advisers.
“Considering the landscape for financial advice is somewhat precarious, endorsement from affluent investors is encouraging.”
A sample of 927 individuals were involved in the CoreData Research UK High Net Worth Study 2012, with each respondent having at least £500,000 of net investable assets with the average being £1,336,569.