Cerulli: For Advisers, Fiduciary Duty Pays Off With Long-Term Investor Satisfaction
Recent Cerulli Associates research illustrated that 70% of affluent investors believe their financial services providers are obligated to always put clients’ best interests first.
According to the international research and consulting firm in The Cerulli Report—U.S. Retail Investor Solutions 2025: Refining Wealth Management Engagement, it is “imperative that firms make their best efforts to align their strategies and incentives to help foster a fiduciary culture that truly prioritizes clients’ interests and experiences.”
Across the board, affluent investors are highly confident that they are in a fiduciary relationship with their primary provider; in the report, just 15% indicate that their provider may only sometimes be obligated to act as a fiduciary. Cerulli’s research finds clients under a banking deposit relationship are most likely to recognize that outside of legal adviser relationships, the interests of the firm’s shareholders may come first.
“When considering their platform offerings, it is essential that providers embrace the spirit of their role as fiduciaries. Every product and service on the platform represents the provider, with the firm’s reputation ultimately tied to the least satisfactory client experiences,” says Scott Smith, senior director.
According to Cerulli, “80% of affluent respondents want a human adviser on call.” Starting with the $2 million to $5 million household financial assets tier, the importance of access to an adviser when one is needed tends to increase—either due to complexity in the types of assets or the quantity of services needed.
Cerulli’s research finds a significant connection between clients’ expected standard of care and their satisfaction levels. At the high end, 70% of those who believe their adviser is always obligated to act as a fiduciary indicate they are satisfied with their relationship and not seeking a new provider. In contrast, just 41% of those who believe providers may put their own best interests first share this level of satisfaction.
“Of course, this goes both ways, with individuals who believe firms can prioritize their own interests most likely to be open to a new provider. Still, the key implication remains the same: clients who are confident that they are in a fiduciary relationship are less interested in new providers. Firms interested in retaining and building long-term relationships will need to remember to put the needs of clients first or risk attrition,” said Smith.
Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business.
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