IWI survey finds certification awareness higher among clients who refer

Among clients who had referred their advisor, 87% knew whether the advisor held an advanced certification, versus 59% of those who had not referred, the Investments & Wealth Institute reported Thursday. The gap is 28 percentage points.

Sixty-eight percent of respondents said an advisor's advanced certification makes them more likely to refer others, a share that rises to 74 percent among clients with $5 million or more in investable assets.

Eighty-seven percent of high-net-worth clients say it is somewhat or very important that their advisor holds an advanced professional certification. InvestmentNews reported the findings, which the Denver-based association commissioned from Absolute Engagement.

Absolute Engagement fielded the survey on the institute's behalf, polling 1,000 U.S. investors with at least $500,000 in household investable assets who work with an advisor and help make household financial decisions. The institute is the professional association behind the Certified Investment Management Analyst and Certified Private Wealth Advisor certifications.

The research shows correlation rather than causation, so the direction of the referral link is unconfirmed: credential-aware clients may refer more, or clients who refer may learn more about their advisor's qualifications over time. Referrals still dominate how advisors find clients even as younger investors increasingly use digital channels, according to the report.

Advanced certifications are voluntary, separate from the licenses and registrations an advisor needs to sell securities or give investment advice. The SEC, FINRA and state securities regulators neither grant nor endorse them, leaving clients to decide what a given set of initials is worth.

Ninety-six percent of respondents said they are satisfied with their advisor, and the report's Client Satisfaction Index reached 93 this year, up slightly from a low of 90 in 2020. A separate Loyalty Index stood at 92, with 71 percent of clients saying they are extremely likely to stay with their advisor over the next 12 to 24 months. "Advisors should feel good about the high levels of satisfaction we see in the research, but satisfaction only tells us part of the story," said Sean Walters, CEO of the Investments & Wealth Institute.