In a recent survey, Spectrem Group asked a group of HNW investors if concerns about Bernard Madoff, and his recent Ponzi scheme scandal, would affect their usage of financial advisors, and the answer was no.

A robust 69% said that would make no difference whatsoever in their use of advisors – which is good news for advisors, though somewhat surprising. A previous survey asked investors how Madoff would affect their choice of advisors and many said they would be hesitant to use a smaller firm because of concern about custodial issues. Perhaps it is Madoff’s upcoming trail that has made people feel more confident, but whatever the reason, smaller firms need to communicate that they have the custodial issues handled and how. Though investors are saying they were no affected by Madoff, there may be more to it than previously thought, and now is the time to reassure investors, especially at smaller firms.

Ultra High Net Worth professionals make up about 20% of UHNW households (defined as having a net worth, not including the value of their primary residence, of at least $5,000,000).

Per Spectrem Group research. These highly educated investors are experts in their field and their investment-related attitudes and behaviors differ significantly from their affluent cousins, as do their expectations of and relationships with their advisors.

High Net Worth Investors recognize that the market has dropped significantly and did not expect their advisor to overcome that challenge. That being said, overall satisfaction levels have dropped from 60% in the Spring of 2008 to 40% at the end of the year. In addition, investors are expected to reassess how their advisors are performing in the next twelve months.