Investors with between $5 million and $25 million of investable assets have a growing affinity for full service broker-dealers, according to a Spectrem Group survey.

Compared to other types of advisors, 40% of wealthy investors in that range were likely to choose a full service brokerage (such as a wirehouse or regional broker-dealer) over another advisor such as an RIA or accountant. 

“They really want it to be a broad, diverse firm and they want to purchase products and services from a wide variety of companies,” Katherine Dordick, who runs business strategy and development at Millionaire Corner, an offshoot of Spectrem, said in an interview with On Wall Street. “There definitely is a perception based on the way they’re selecting that full service brokers are able to provide that. They want that broad level of coverage.”

The number of high net worth clients electing to go with a full service broker-dealer is up year-over-year from 36% in 2010 and 2011. Among those who reported that a full service broker was their primary advisor, that number was even higher at 60%.

Driving some of this growth are younger investors under the age of 44, Dordick says. The number of investors under age 44 who said that they preferred a full service brokerage was 58%, significantly higher than the 40% among all segmentations.

“[Full service broker-dealers] are very, very, very much on the rise for younger investors,” Dordick said. “And I think those younger investors are looking for that comprehensive service. They’re evaluating a website and making sure there are robust offerings and access to multiple different types of offerings, and there’s definitely that perception that a full service broker is the place to get that.”

Of all the high net worth clients surveyed, 61% said it was important to be associated with a well-known brand and a company that had depth of products and services.

Outside of full service broker-dealers, 13% used an independent financial planner, 12% used an independent investment advisor 12% use an investment planner. Nineteen percent did not use any type of financial advisor.

Dordick herself was formerly an advisor at Wells Fargo, Morgan Stanley and Arbor Research and Trading over the span of five years from 2004-2011, according to public documents filed with the Financial Industry Regulatory Authority.

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