What is the role of a financial advisor? How is it defined and who defines it? Of course the most important opinion belongs to the public, and the public's opinion of the financial services industry is derived from observing those who work within it.
After numerous years in the industry, I have made some observations as well. I believe that in a majority of cases the position of the financial advisor is primarily treated as a sales gig. In addition, I believe the American consumer is beginning to see this more and more. Although I do not have any third-party research to support this belief, I have had many discussions with clients who have confirmed that this is the case.
Years ago, I worked for a large brokerage firm. One of this firm's 'top producers' was also a great salesman. He was not a gifted tactician, but he could spin a good yarn. However, behind the scenes—a view that clients unfortunately do not often possess—all he cared about was how much money he made. During the 1990s, this type of approach, however self-serving it may be, still yielded the client a decent return. Not so today.
Part of the problem stems from the fact that a publicly traded corporation needs to maximize profits which, ostensibly, contributes to a rising stock price, happy stockholders and board members and CEO compensation. As a result, hiring salesmen has proven to be a viable, beneficial corporate strategy.