Issue link: https://resources.envestnet.com/i/1527487
Taking the Measure of Advice © 2022 Envestnet. All rights reserved. 11 FIGURE 3: DISTRIBUTION OF ADVISOR PRACTICE SCORES Equally important, by examining their scores for each of the five components, advisors can identify their strengths and areas for improvement. Figure 4 shows the relative strength in each of the five categories for the average advisor at wirehouses, national broker-dealers, independent broker-dealers, registered investment advisors (RIAs), bank broker-dealers, and insurance broker-dealers. Financial advisors based in the wirehouses are stronger than independent broker- dealers and bank broker-dealers when it comes to the overall financial wellness score. Much of that is driven by the integrated advisor workstation/platform employed by wirehouses and the efforts to drive digitalization and client engagement. Advisors at national broker-dealers are the second-highest-scoring group. Their highest average score is on breadth of platform capabilities, and their smallest score is on financial planning. Advisors at RIAs rank third overall; they have a notable strength in financial planning and breadth of financial advice, but they are weaker in platform capabilities. Ranking fourth are advisors at insurance broker-dealers. Their highest average score is on breadth of platform capabilities, and their smallest score is on engaging the spouse and family members. Advisors at independent broker-dealers rank fifth among the advisor types; their highest average score is on breadth of platform capabilities 0 10 20 30 40 50 60 70 80 90 100 0 100 200 300 400 500 Distribution of Advisor Practice Scores (Base: 483 financial advisors primarily serving individuals/families, with 3 or more years of experience Source: Aite-Novarica Group's survey of 483 U.S. financial advisors, Q4 2021 Financial advisors Advisor practice score