A survey of 500 U.S. citizens aged 25 to 64 found that 93 percent believe problems exist in the financial industry that must be addressed and 63 percent think financial institutions need more regulation.

The survey also found that they consider "quality of communications" and "customer service" as important as "price" and "performance" in influencing trust. While this was Edelman's first focus on financial services, the company has conducted an annual Global Trust Barometer of major industries including banking and insurance since 2001.

"We've seen significant changes in how people evaluate corporate reputations and the factors they view as most important in shaping their decisions," said Matthew Harrington, president and CEO, Edelman U.S. "Just three years ago, financial performance ranked as the top criterion for all U.S. companies. It now scores at the bottom, replaced by transparency and trust. In financial services specifically, companies must realize that transparency via frequent communication and high-quality customer products and services are as essential to creating and maintaining investor trust as superior returns and five-star ratings."

In the U.S., trust in banks fell to 33 percent in the 2010 survey from 36 percent last year, while trust in insurers was 32% in 2010, although that level improved from 29 percent in the previous survey. Only media companies matched the 32 percent low. Technology companies ranked highest with a trust level of 81 percent.

In the survey, community/regional banks ranked as the most trusted financial institutions in the U.S., with mutual fund companies and life insurance companies close behind. Brokers/advisors were ranked as the most-trusted sources to provide accurate information on investments, investing, or the markets. They were followed by friends or family, and CEOs were the least trusted.

While trust in U.S. financial services companies declined from last year's record low, the survey signaled a rebound in trust among college-educated 25-34 year olds. For this demographic group, trust levels rose to 47 percent from 36 percent the previous year.