While 39 per cent of the 162 ultra high net worth US individuals questioned said they were happy turning to a wealth advisor when making important financial decisions, there remains a worryingly hefty proportion (49 per cent) that feel “isolated”. Meanwhile, over half (57 per cent) said they felt that their advisor wasn’t equipping them with enough information to assess risk.

The survey represented families with, on average, over $11.8 million in financial assets and was conducted by Scorpio Partnership. The findings, arguably, come as a surprise considering the extent to which the wealth management industry emphasises the significance of strong advisor-client communication. It is also surprising given the abundance of communication channels now available to industry professionals and clients alike.  

“The challenge is trying to balance the need for external input with clients’ instincts to take the lead on family decisions, financial or otherwise,” said Michael Farrell, managing director for SEI Private Wealth Management. “It really comes down to having frequent and meaningful communication with clients in order to arm them with all the information and advice they require to make confident decisions.”

In other related findings, ultra-wealthy individuals - on average - require double the level of assets they currently have in order to feel financially secure, regardless of net worth. It also appears that those individuals under the age of 50 feel even less secure, saying that they needed the volume of their assets to be three times larger in order to feel confident.

While the survey is based on US individuals, the findings have global ramifications. In the UK, for example, a recent "mystery shopper" exercise carried out by the Financial Services Authority found that the investment advice doled out by UK banks and building societies is still a cause for concern in a quarter of cases. In 11 per cent of these instances, the evidence suggests that the advisor gave the customer unsuitable advice, while in 15 per cent of cases the evidence suggests that the advisor did not gather enough information to make sure their advice was suitable (view full article here).

Meanwhile, last year Stacey Haefele told this publication that while there has always been “something of a disparity” between investors’ expectations and how advisors interpret what is expected of them, this gap has been exacerbated amid the recent financial turmoil.