Prevalence of DEI 

When firms first released statements committing to diversity, equity and inclusion programs, it was seen as an uplifting shift. Years later, others question whether the vows to diversity commitments were just short-lived or had lost steam. 

Rather than working with advisors on inclusive education so they can relate to diverse clients, or teaching professionals about the consequences of microaggressions and biases in the workplace, Brown believes that some in the industry defined diversity initiatives as tidemarks. 

“They would say, ‘we need one of these, one of these, and one of these,’ and it’s really the diversity of experience that’s needed,” Brown said. “You want someone who understands those things, so you don’t necessarily have to describe those to someone else. It’s important to understand the reasons behind why we need different voices and experiences in the room. And it’s not being a threat, it’s more of an addition to how great things can be.” 

While a Janus Henderson study shows that men and women have no preference in working with a financial advisor of the same gender, research shows that respondents place weight on how their advisor relates to them. This includes all areas of diversity, from race and gender to cultural background and sexual orientation. 

Much of the sentiment boils down to trust and ensuring the client’s needs and values are recognized, explains Roberta Hess, head of Organizational Change Management at SS&C Technologies and president of WIPN. 

“When you think about getting professional guidance for your financial life and how you’ll take care of your family and live in retirement, there is nothing more important than being heard and understood and finding a partner you can trust to make those type of decisions,” she said. “At its very core, the relationship is about that. One of the reasons that diversity is so incredibly important is its importance in relationships and in developing the understanding of those unique needs.”  

Next: Work to be done