Pioneering a Directory of Leading Wealth Advisors

Family Office Exchange is known for pioneering initiatives that provide unique insights to wealth owners and wealth advisors. Our latest innovation is the Directory of Leading Wealth Advisors launched in June, after 20 years of research on the topic. This database, designed to help families with multi-generational wealth identify qualified integrated wealth advisors, provides a starting point for families pursuing an advisor selection process.

 

FOX screened the wealth advisors for the Directory using 22 criteria established by FOX and vetted by leaders in the industry. These criteria are available on the web site for anyone who wants to understand the complexity of the issues involved in selecting advisors. We developed other educational material to help families recognize their needs, including an overview of the wealth management landscape and a scorecard for measuring the value of their current advisor.  

 

Over 5000 unique visitors have visited the Directory since the launch on June 6, which is a strong showing. We have 30 firms in the directory and a number in the screening process. We also have had praise from the press, from advisors, and from families that have used the Directory.

We knew that this project would ruffle some feathers when we started. This Directory packages information in a convenient format that investors can understand (as opposed to the more difficult to navigate ADV forms) and enables  them to discriminate between advisors in ways that were not possible before. We are bringing needed transparency to an industry landscape where many advisors today count on the complexity to make clients dependent on their guidance. We knew there would be pushback. Two months into the launch, the comment has begun.  

 

The first salvo was a passionate letter to the editor of one of the publications that covered the Directory’s introduction that claimed that the list was biased because all the firms in the Directory were FOX members. This has been a common misperception, but 10 of the 30 firms currently in the Directory are not FOX members.  As the database grows, it will likely contain many more non-members than members of FOX. There is no fee charged or membership required for firms to be screened or accepted into the Directory. Participants who desire an extended four page profile in the Directory will be asked to pay a fee to defray the expense of creating the directory. Non-members who choose not to pay are still provided with a one-page profile of their basic qualifications to be shared with visitors.  

 

Last Saturday, a more detailed critique was offered by Barron’s, working on a “tip.”  They claimed that our review of the firms was less than thorough and that there are biases in the presentation of the data. We reviewed all of their concerns with them and pointed out to their editor many misperceptions which were not corrected in the published article.  

 

We stand by our process and the value it is providing to wealth owners. We are receptive to all suggestions for improvement and review each of them carefully in the context of our original goals. We are attentive to perspectives that are different from our own and open to suggested improvements. We know that the program is still young and that it will become better as we evolve it based on input from wealth owners and wealth advisors. 

 

To ensure that we have an appropriately thorough and insightful screening process for the Directory, we have always planned to assemble an Advisory Board to vet our procedures. We will accelerate the implementation of the Board and are in the process of identifying candidates.

We will not tolerate inaccuracies in the data, including data in the Directory supplied by the screened firms. We have conducted training with our staff on this matter and will tighten our procedures. With the assistance of the Advisory Board, we will clarify the definitions on our site and ensure vigorous and continuous review of all data presented.

 

And, we will ensure that the source of all content is clear. Profile material provided by the Directory firms will be clearly marked and differentiated from data provided by FOX. All firms will be fairly presented without regard to their FOX membership status or their payment for an extended profile. Our intent from inception has been to provide an objective and independent source of sophisticated information that wealth owners can count on. 

 

We passionately believe in the need for this product and are working to ensure that it is reliable and valuable to new buyers of financial services. We welcome your support and suggestions.