REGULATIONS AND COMPLEX PRODUCTS CHALLENGE

FINANCIAL ADVISORS

Despite these obstacles and a tough post-recession economy,

advisors remain optimistic, according to a new study by HNW

New York – October 26, 2010 – Sixty percent of financial advisors feel the complexity of their product offerings limits their practices’ success, according to a new national study.  Published today, the 2010 HNW Advisor Study surveyed more than 600 financial advisors and reveals the rapidly changing relationships advisors have with their firms and their clients in a post-recession economic climate.

Conducted by HNW, Inc., the leading provider of wealth marketing services to the financial and luxury goods industries, the 2010 HNW Advisor Study surveyed financial advisors across the country. The key area of focus was a comparison of pre- and post-recession conditions that have informed the landscape for advisors, their firms and their high-net-worth clients.

The study’s additional key findings include:

• Fifty-five percent of advisors are unhappy with their firms’ reputation management during and after the economic crisis.
• Financial advisors are increasingly relying on their personal “brand” rather than on their corporate brand to market themselves. This is particularly true of wire house brokers, who, since the recession, surprisingly are emphasizing their personal brand over their firm’s branding.
• Company and industry regulations impede advisors’ use of social media as a marketing and/or business development tool. As a result, nearly 70 percent of advisors do not use LinkedIn, Facebook, Twitter or other social networking services.
• Despite a rough economy, the vast majority of financial advisors are happy with their career choice. Few say they are looking to exit the industry.

“The fact that advisors have the job of handling clients’ money but don’t fully understand the products they are selling should send a major signal to the industry,” said Stacey Haefele, CEO of HNW, Inc. “Moreover, the limitations the industry is placing on the use of social media to communicate with clients is remarkable at a time when so many of their clients themselves use social media.”

The survey classified financial advisors by a number of factors – such as job function, years of experience and whether they work for a national brokerage firm or an independent advisory – and focused on the changes as a result of the recent recession, the degree of support financial advisors receive from their organizations, how they relate to their clients and the challenges of working in the financial services industry.

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ABOUT HNW, INC.:

HNW is the only marketing firm focused exclusively on the wealth market. The firm is a leading provider of strategic and interactive marketing solutions for wealth management firms and luxury brands. HNW has developed several tools to enhance their clients’ services, including HNW Advisor e-Suite, a communications software suite for independent advisors and small practices. For more on HNW and HNW Advisor e-Suite, visit http://hnwadvisor.com.

MEDIA CONTACTS:

Goodman Media International, 212-576-2700

Régine Labossière, rlabossiere@goodmanmedia.com

Nicole Summer, nsummer@goodmanmedia.com

Bennett Kleinberg, bkleinberg@goodmanmedia.com