Do Designations Attract a More Knowledgeable Consumer?

This study evaluates consumer knowledge and understanding of the investment process utilized by financial advisors. The results indicate that consumers who know the type of advisor they employ and the advisor's method of compensation are more likely to know and understand the advisor's investment process. Additionally, consumers who place importance on their advisor holding designations and on compensation method are more likely to know and understand the advisor's investment process. The results also suggest that advisors who acquire designations have a more knowledgeable and understanding consumer.