New Research Shows Registered Investment Advisors Rank Customer Service as Top Factor When Choosing Custodian

ST. LOUIS--(BUSINESS WIRE)--As registered investment advisors (RIAs) continue to help navigate their clients through rough economic times, the support they receive from their custodian is vital, according to a new study from Scottrade^® Advisor Services.

“People who saw the double-digit gains in their retirement accounts in the nineties and early 2000s thought it would last”

The 2012 Scottrade^® Advisor Services Study, which reports on the attitudes and behaviors of RIAs and their clients, revealed that advisors ranked the level of personalized customer service they receive as the most important factor when selecting custodial services. Of those who listed they use more than one custodian, 52 percent consider the firm with the best customer service and support to be their primary custodian.

“As investors’ needs change, independent financial advisors need to be prepared to meet the challenges associated with changes in investor behavior and market conditions, said Brian Davis, director of Scottrade^® Advisor Services. “Today, many advisors are looking to build deeper relationships with their custodians so that they are able to receive the back-office support they need. As RIAs work to grow their client base, Scottrade^® Advisor Services provides the resources advisors rely on so that they can provide specialized guidance to their clients, ensuring that they will not only sustain, but continue to grow their practice.”

Advisors focusing on suppressing frustration in account growth

According to the study, RIAs report an increase in the Boomer generation (ages 45-66) seeking professional financial advice in the past year, with 65 percent of respondents seeing an increase in the number of Boomers walking through the doors. However, more than half of RIAs report Boomers taking less risk on their portfolios this year than in 2011.

“The conversations I’m having now with my clients are more than just a yearly check-in, they are to assure them that now is not the time to throw in the towel,” said Mark Harris of Mark Harris Services, a RIA based in Cameron Park, Calif., who works with Scottrade^® Advisor Services.

“People who saw the double-digit gains in their retirement accounts in the nineties and early 2000s thought it would last,” Harris said. “Advisors now need to sit down and spend more time with their clients and explain their options in detail. While it may not be the 10 percent yearly return they were used to, there are still ways to have a positive return, depending on their risk tolerance.”

Personal customer service leading to bottom-line results

As more advisors are finding new ways to maintain and grow their business, the support they receive from their custodians is important, the study revealed. Nearly 60 percent of RIA respondents say they are very satisfied with their primary custodial relationships.

“The customer service I receive from Scottrade^® Advisor Services helps me be more efficient, which keeps my costs down and my clients’ costs down,” said Tom Nardozzi, president of Perpetual Wealth Advisors in Smyrna, Ga. and a Scottrade^® Advisor Services user. “My clients and I benefit from the low trading costs and high level of customer service that my Scottrade relationship team provides.”

In addition to providing online trading services and tools, Scottrade^® Advisor Services assists its 1,100 advisors with their business and trading needs by providing an individualized, dedicated relationship team to each advisor.

“One of the biggest reasons I am with Scottrade^® Advisor Services is I can pick up the phone at any time and call my representative, and that person knows my business and my issues,” Harris said. “My relationship team is there when I need them to answer questions quickly – they continue to provide excellent service so I can provide my clients with excellent service.”

About the Scottrade 2012 Registered Investment Advisor Study

The 2012 Registered Investment Advisor Study commissioned by Scottrade^® Advisor Services polled 304 registered investment advisors in a proprietary online survey from May 17-30, 2012. The national sample was selected from the Meridian IQ database, and respondents were asked to confirm current employment as a Registered Investment Advisor in order to be eligible to participate. The margin of error was +/– 5.6 percent at 95 percent confidence. The survey asked questions about a wide range of topics related to individual RIAs’ experiences over the past year in terms of client base changes and behaviors to changes to their business practices.

About Scottrade^® Advisor Services

Scottrade^® Advisor Services is a business unit of Scottrade, Inc., dedicated to supporting the needs if independent registered investment advisors. Scottrade^® Advisors Services’ low commissions coupled with personalized customer service through dedicated relationship teams, makes Scottrade^® Advisor Services an exceptional value for advisors looking to grow their practices. With no advisor enrollment fee and no minimum asset requirement, Scottrade^® Advisor Services has the account management tools for advisor practices of any size. For more information, visit https://advisor.scottrade.com.

About Scottrade, Inc.

Investors who enjoy online stock trading will find value and personalized customer service at online investing firm Scottrade, Inc. Founded in 1980, Scottrade enables clients to learn about online trading tools, stock market research and how to buy stocks online, many at just $7 per trade. With more than 500 nationwide branch offices, Scottrade has the largest branch network among online brokerage firms. To learn more about one of FORTUNE magazine’s “100 Best Companies to Work For,” visit about.scottrade.com or www.scottrade.com and follow us on Facebook, Twitter, YouTube and Flickr. Member FINRA/SIPC.

Scottrade^® and the Scottrade^® logo are the registered trademarks of Scottrade, Inc.

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