In light of recent rumblings about the fiduciary rule going into effect in June, Personal Capital, a digital wealth management firm, has discovered that a large number of Americans are unaware that financial advisors are not always working in their best interest and require greater information on how to work with advisors to grow their wealth.
According to Personal Capital’s recent survey of over 2,000 U.S. adults, the wealth management firm found that 46% of Americans mistakenly believe all financial advisors are required by law to always act in their clients’ best interest or abide by fiduciary standards and 31% of respondents were unsure.
There is also increased skepticism regarding financial advise, with 70% of Americans saying that recent events in the financial industry have made them question the trustworthiness of financial professionals. Around 32% believe that financial advisors are likely to take advantage of a consumer.
About 54% of surveyed respondents do not utilize advice from financial advisors. Of those respondents, 45% say they aren’t working with an advisor due to a lack of trust.