High fees are lowering clients’ satisfaction with their wealth manager, according to research on client satisfaction from financial research firm MDRC.

The overall figure for client satisfaction was 58, a ranking of ‘good’, but this was not consistent throughout the industry.

A key reason for the fall in the table was the fact only 55 per cent of clients felt their current fees were fair for the service received, down by 21 per cent from 2010.

This was important as more than half of respondents cited this factor as a key driver of satisfaction, particularly for those aged over 55.

Less than 10 per cent of firms were rated as ‘excellent’ by their clients and MDRC said there was significant difference between the best and worst firms.

Those firms rated highly were ‘investment boutique’ firms which had few clients per adviser meaning they could devote more time and attention to their clients. These firms often had a business manager who was partly business owner.

At the bottom of the table were large firms where the interests of advisers did not align with the interests of the client. These firms had often changed their pricing or (in the clients’ opinion) managed their portfolio badly.

MDRC suggested firms identified client expectations, measured their clients’ satisfaction on a regular basis, tailored service delivery and be proactive with managing the client.

It also suggested firms contact former clients and find out why they left the firm.