SEI Quick Poll: Majority of Advisors Unfamiliar with Financial Reform and Unclear on Impact to Business, Clients

OAKS, Pa., July 22 /PRNewswire-FirstCall/ -- A majority of financial advisors say they are unfamiliar with many of the details surrounding financial reform and its potential impact on their business and clients, according to an SEI (Nasdaq: SEIC) Quick Poll released today. Nearly three-quarters of the 144 advisors surveyed said they are either 'somewhat familiar' or 'not familiar' with the impact of financial reform; only six percent identified themselves as 'very familiar'. Furthermore, the survey found that more than half (56 percent) of advisors have not discussed financial reform with their clients during the past year.

The results show that advisors have not closely followed financial reform in its various stages. Nearly half (41 percent) of advisors are 'undecided and unsure' whether it will be good for the investment advisory industry. Additionally, only 11 percent felt that 'investors are better protected and advisors are held more accountable.' Furthermore, nearly half (43 percent) of advisors said they are 'undecided' about whether financial reform will substantially change their business operations, sales process, and client retention strategies. Similarly, 40 percent of advisors said that they are undecided whether financial reform will substantially change how clients rely on their services.

"Given the volume and pace of information concerning regulatory reform, it is not surprising that financial advisors are not completely up to speed on the reform in its various stages," said Wayne Withrow, SEI Executive Vice President and Leader of the SEI Advisor Network. "It's our observation that this isn't due to a lack of interest, but rather a lack of time. Most advisors are already juggling so much to run their businesses in today's environment. In addition to servicing clients and prospecting, they also have to stay current with the regulatory reform changes occurring on a near-daily basis. Yet, we believe it is critical for advisors to be able to communicate the changes and potential impact of financial reform to their clients."

The majority of advisors surveyed (57 percent) indicated that financial reform received a disproportionate amount of attention from the government and that there are more pressing needs to be addressed. Only 13 percent of respondents said that it should have been made a greater priority.

"Many advisors perceive the amount of time it would take to follow financial reform as too onerous given their current workload," said David Strege, CFP, Senior Wealth Coach of Syverson Strege & Co., in West Des Moines, Iowa. "However, there are various resources available that provide a good snapshot of the changes and what we can expect moving forward. Additionally, I've found that being conversant in this complex topic has been a differentiator in communicating with clients and prospects."

None of the 144 respondents, who completed the survey this week, are affiliated with the SEI Advisor Network.

About the SEI Advisor Network

The SEI Advisor Network provides financial advisors with turnkey wealth management services through outsourced investment strategies; administration and technology platforms; trust, banking, and institutional services; and practice management programs. It is through these services that SEI helps advisors save time, grow revenues, and differentiate themselves in the market. With a history of financial strength, stability, and transparency, the SEI Advisor Network has been serving the independent financial advisor market for more than 16 years, has over 6,000 advisors who work with SEI, and $28.4 billion in advisors' assets under management (as of June 30, 2010). The SEI Advisor Network is a strategic business unit of SEI. For more information, visit www.seic.com/advisors.

About SEI

SEI (Nasdaq: SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of June 30, 2010, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $380 billion in mutual fund and pooled assets and manages $149 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from numerous offices worldwide. For more information, visit www.seic.com.

SOURCE SEI