In a recent survey investors voiced a vote of confidence in their advisors but had less positive feelings about the financial services industry.

According to the survey by Envestnet, eighty-seven percent of advised investors say that over the past 18 months "my financial advisor always acted with my best interests at heart" and close to 8 in 10 (79%) say the "value I have received from my financial advisor was more than worth the cost."  

Still a not very impressive sixty-two percent of advised investors say their portfolio has done better over the past two years compared with most people they know.  However, only a small percentage had negative views with 12% of advised investors said their advisor "did not explain the risks of the market as well as he/she should have."

While the individual investor-advisor relationships received relatively high marks, seventy-three percent of investors say that the market and economic turbulence of the last two years has left them increasingly cynical about the financial services industry.

"Individual relationships have weathered the market storm, but there is no question that overall the financial services industry has taken a reputational hit," said Bill Crager, president of Envestnet. "While investors generally feel well served by their financial advisors, the extreme market disruptions of the last two years have provoked investor concerns about the integrity of the financial services industry and of the markets alike."

In addition, there seems to be divisions with the advisor ranks as to who is doing a good job serving their investor clients.  Most financial advisors polled by Envestnet said they agree that while they look after their clients' best interests, a lot of other financial advisors do not.  And – while they grade themselves highly on explaining their professional responsibility to clients – advisors give other financial advisors a "C" when it comes to this attribute.

The Madoff factor still is having an impact on how investors view the profession. Financial advisors and investors generally agree that external factors such as high profile scandals like Bernie Madoff and the market collapse of 2008-2009 have been big factors in shaping a heightened focus on professional responsibility.

“But investors – to a much greater degree than financial advisors – cite too much loss of investor wealth (cited by 57% of investors vs. 37% of financial advisors), growing investor empowerment (57% vs. 18%), and personal satisfaction notwithstanding, a loss of trust in financial advisors generally (58% vs. 34%) as major reasons why financial advisor responsibility is now under such close examination,” according to the study.