The report 'The Rules of Engagement' was produced by thinktank Adviser Impact and Vanguard Asset Management and questioned over 750 UK investors who worked with a financial adviser.
The report looked at the needs and expectations of investors, divided into those who were fully-advised and those who worked with an adviser on specific tasks, so-called 'hybrids'.
As well as industry distrust, the report found although clients trust their own adviser, they fail to have the same level of trust for the adviser's firm.
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Some 77 per cent said they trusted their financial adviser but this dropped to 67 per cent for the adviser's firm. It then dropped significantly to 22 per cent for the financial services industry.
Divided between fully-advised and hybrids, 87 per cent of the fully-advised trusted their adviser, 78 per cent trusted the firm and 29 per cent trusted the industry. For hybrids, 67 per cent trusted their adviser, 57 per cent trusted the firm and just 15 per cent trusted the industry.
The report said: "Trust may be the highest standard we can set for a relationship and this is equally true of the relationship between client and financial adviser. While clients place a high level of trust in the advisers with whom they have chosen to work, they have a low level of trust in the industry as a whole."
Some 82 per cent of clients said they somewhat or very satisfied with their adviser and 60 per cent said they would continue working with their adviser over the next 12-24 months.

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