The Financial Times reports that Schwab Institutional has taken a huge survey of its clientele which documents what financial advisers have been saying for a long time.
Accounts that clients transfer from wirehouse brokers have investment guideline statements that consistently are misaligned with client financial goals, according to advisers who participated in the San Francisco-based brokers survey.
75% of these accounts arrive with poorly structured portfolios, according to 1,400 registered investment advisers – managing a combined $347 billion in assets – who responded to the Advisor Outlook Study.
“We’ve always known it,” says Stephen Winks, principal with SrConsultant.com of Richmond, Va.
All advisers interviewed said that their only doubt about the study was that as much as 25% of transferred accounts are considered by RIAs to have successful alignment of goals.