Variations in investment advice provision: A study of financial advisors of millionaire investors

Vignette methodology is used to examine how the personal characteristics of investors and financial advisors contribute to portfolio recommendations, and the judgements that advi-sors make about investment knowledge and control of prospective millionaire UK clients. We find that advisors use investor characteristics to make recommendations broadly in line with economic theory and regulatory requirements. However, women are judged less knowledgeable and in control of their investments than equivalent men. They also re-ceive portfolio recommendations with slightly lower risk profiles. Portfolio recommenda-tions vary by advisor, with experienced advisors and those with wealthier clients recom-mending higher risk portfolios. Unmeasured advisor variables also impact on judgements and recommendations. These findings have relevance to the wealth management industry and regulators, in focusing attention on the conscious and unconscious influences on the judgements advisors make about their clients. (c) 2021 Elsevier B.V. All rights reserved.