Regardless of the channel in which advisors surveyed for Investment Executive’s Report Card se-ries ply their trade, those in smaller communities claim their firms have set up near-impossible sales targets and do not offer them sufficient or accessible training or support.
Although this dissatisfaction is most apparent with advisors who work at the big banks or at larger firms, those who work at brokerage houses are the ones most affected by high performance targets.
“They keep making targets harder and harder to meet. The goals are unachievable unless your book is over a certain amount,” says an advisor in Ontario with Toronto-based BMO Nesbitt Burns Inc. “There should be a differentiation for where you serve, because some communities have less money. Especially for me, where money just isn’t around.”
This advisor is not alone. Many others claim that their brokerages do not recognize the difference between setting up shop in an urban centre vs a remote region. Specifically, advisors claim that their firms’ compensation structures are not fair; because populations in some areas are smaller, it is difficult to build a big book and end up in a good position on the compensation grid. Also, there are fewer high net-worth clients in certain regions, so those advisors are left dealing with smaller accounts, for which compensation is significantly lower.
“This firm takes care of big producers only,” says an advi-sor in Alberta with Toronto-based RBC Dominion Securities Inc. “Treatment of middle producers is poor.”
Advisors at other brokerages share this view. Says an advisor in Ontario with Toronto-based ScotiaMcLeod Inc.: “Compensation is not as good when it comes to payment for smaller accounts, so the bigger-ticket guys get more payout although we are all doing the same work.”
Some advisors with the big banks are also troubled by the high sales targets they are expected to meet. Says an advisor in Ontario with Toronto-based Bank of Montreal: “They don’t understand the stress we’re under due to the lofty sales target goals head office sets out.”
Executives do not seem to see this issue as a major concern and, as a result, have no set plan for addressing advisors’ worries. Says Hamish Angus, head of ScotiaMcLeod: “Our experience is that top-performing advisors can achieve success in both large and small markets. A review of the markets in which our top advisors operate shows that we have high-performing advisors in a broad range of markets across Canada.”
And on the banking side, BMO executives say they are already doing enough. “Geography is one of several factors that go into determining certain targets for our sales team,” says Jason McIntyre, vice president of sales with BMO Investments Inc., adding that rather than focusing on providing lower sales targets to mitigate the stress on rural advisors, BMO strives to offer enhanced support services. “We recognize the challenges that some of our staff in smaller communities face and are always looking for new ways to support our sales force.”
BMO offers online training and sales tools and holds regular national conferences. However, when it comes to ongoing training, rural advisors across all channels feel they are getting the short end of the stick. Says a Nesbitt Burns advisor in Ontario: “They have programs, but you have to drive to Toronto to partake in most of them.”
Adds an advisor in Atlantic Cana-da with Burlington, Ont.-based Manulife Securities: “I am isolated in [a small town]. All of the training is only made available to advisors who live in the city.”
@page_break@Although advisors with the banks recognize their firms’ efforts, they still feel shortchanged. An advi-sor in Ontario with Montreal-based National Bank of Canada says: “They try. The biggest problem is that because we are geographically spread apart, it is hard to get us together.”
Advisors in the insurance sector express similar views. Says an advisor in Ontario with London, Ont.-based Freedom 55 Financial: “They have lots of [ongoing training]. But, from where I stand, I can participate in so little of it. It’s a problem for 25%-30% of advisors.”
Much like BMO’s executives, those with Freedom 55 say they are doing their best to meet the ongoing training needs of rural advi-sors. “Our training strategy for advisors is consistent, whether they are based in a rural or urban location,” says Mike Cunneen, senior vice president of Freedom 55 and of its tax and estates planning group. “We have financial centres in more than 60 locations across the country, and we provide funding for advisors to attend professional development and training meetings, including those who live more than 50 kilometres [from] our training centres.”
Rural advisors also complain that the situation is no better when it comes to advertising. Complaints come from all channels and range from a lack of exposure in their community to ad campaigns that are irrelevant to rural Canadians.
“National marketing is not worth the money that they spend on it,” says a Nesbitt Burns advisor on the East Coast. “It is targeted at downtown Toronto and is not relevant in smaller towns.”
Echoes an advisor in Alberta with Waterloo, Ont.-based Sun Life Financial (Canada) Inc. : “The advertising is geared to the big city, and I am in a rural area.”
Several rural advisors with Toronto-based DundeeWealth Inc. cite the firm’s consumer advertising as the aspect in which it most needs to improve. A DundeeWealth advisor in British Columbia suggests that the company can do a better job of promoting itself: “Especially from the point of view of the individual broker living in a small community. We are not recognized in small areas.”
DundeeWealth executives recognize the need for change and are striving to help these advisors. Says Richard McIntyre, executive vice president, retail: “We identified rural area marketing as an area for improvement this year. One of the approaches we are taking is to arm our advisors with a broad range of resources that make it easy and cost-effective for them to promote themselves in their communities according to the unique communities they all live in.”
DundeeWealth has created a public relations and media training resource to help its advisors promote their businesses at a local level by supplying press release templates and recommendations on how to develop relationships with journalists.
Advisors at the banks have even bigger concerns, complaining about a lack of a physical presence in their regions. Says a BMO advisor in Ontario: “We do not have enough branches or ATMs available to clients; we lose people that way.”
Beyond these complaints, rural advisors seem to feel a disconnection overall with their firms. They also complain about difficulties in communicating with head office and bemoan the lack of support services available in their locations.
Says an advisor in B.C. with Toronto-based CIBC Wood Gundy: “Out here, we feel isolated. Everything happens in Toronto.”
Adds a DS advisor in Quebec: “We are served from Montreal or Toronto. There is no one in the branch, which creates a disadvantage.”
And an advisor with Toronto-based TD Canada Trust points out: “Based on where I am located — meaning, in Saskatchewan — there’s nothing there” in terms of support for wills and estate planning.
On the bright side, rural advisors with Toronto-based Royal Bank of Canada say they are happy with the support they are getting. Says an RBC advisor in Manitoba: “I can pick up the phone with a question and get an answer right away.”
IE
Rural advisors report displeasure
There are issues of concern for advisors who work outside urban Canada
- By: Dinah Zeldin
- August 27, 2010 October 28, 2019
- 14:12