A true test of loyalty

“The real key to maintaining a relationship with clients,” Bowe says, “comes down to trust and openness. It is about never losing focus on whom you are serving and always keeping an open dialogue, when it comes to communicating. That is how you maintain a high level of trust with your clients and, in the end, keep them loyal.”

Bowe, with his business partner, Chris Ballanger, joined Richardson GMP this past October. Before joining that firm, the duo recently had combined their previously separate practices into a single team. In fact, Bowe and Ballanger were in the process of merging their practices when their erstwhile firm, Wellington West Capital Inc., was acquired by National Bank Financial Ltd. (NBF) in 2010. Throughout that process – with changes occurring at both the firm level and the practice – both advisors were able to retain all their clients.

But, after spending a year with NBF, Bowe and Ballanger began to wonder whether their practice and their goals fit with the bank-owned investment dealer.

“We needed to find the right place to serve our clients in a very quickly changing landscape,” Bowe says. “We gave it some time, and always said if the model didn’t fit, then we would address it. Part of our decision was that we wanted to be drivers, [to be] owners and to be proactive. We didn’t want to be passengers or employees throughout the process.

“That is really the crux of the motivation behind my most recent move,” he continues. “For me, it was about having a vision of where I thought our clients would want to be and anticipating what their needs are, and then finding a place that has the tools to facilitate those needs.”

While Bowe and Ballanger were considering a move from NBF, they were approached by a number of firms, both bank-owned and independent. What drew the partners to Richardson GMP, Bowe says, was the strong equity-ownership model that firm provides. Richardson GMP’s partnership program enables advisors to become both equity owners and partners in the firm.

“Having strong relationships with your clients is key,” Bowe says. “But another part of that relationship is the relationship you are going to have with your partners. From the start, we had to determine where we wanted to be and then take action on it. We had to ask: who would be the ideal partner for our practice?”

@page_break@Bowe started his career as an advisor with Toronto-based ScotiaMcLeod Inc. in 1988. He went on to work for other investment dealers, including Midland Walwyn Capital Inc., CIBC Wood Gundy, HSBC Securities (Canada) Inc. and Wellington West. Throughout those moves, Bowe has managed to retain 90% of his client base, an impressive record he attributes to his strength in building relationships. (Eighty per cent retention is considered a good target.) When Bowe made the transition to Richardson GMP, he didn’t lose a single client.

“Over the years, I don’t think any of my clients made those moves because of the firm’s brand or logo,” Bowe says. “They were coming on board so that they could continue their relationship with me. And that is what makes this industry so great – being able to maintain close connections with the people you are trying to help.”

For anyone looking to make a move, Bowe says, its important to determine where you want to be in three to five years, then make a list of what must be in place to make that happen for you and your clients. Your decision, Bowe says, should be based on a variety of factors, including support services offered by the firm, the firm’s technology platform and its marketing capabilities. In addition, you should consider whether you want to work with a firm that is bank-owned or independent, and whether it offers an equity-ownership program.

Bowe handles more than 200 clients, many of them high net-worth business owners or incorporated medical specialists. Bowe’s team uses what he describes as an “integrated wealth platform,” in which the practice maintains close relationships with other professionals such as chartered accountants and lawyers. The ability to continue to use this platform was a major factor in Bowe’s and Ballanger’s decision to move to Richardson GMP.

“Many of my clients are successful business owners,” Bowe says, “and they recognize the importance of independence. Already, the feedback I’m hearing is that they like talking to an owner. They like that direct connection.”

During any move to a new firm, Bowe says, it’s important to keep a checklist to ensure every promise made by the firm during the recruitment phase is kept. “Many times,” he says, “you can be told what you want to hear. And it can be a bit of bait and switch.”

When it’s time to tell clients of an impending move to another firm, Bowe meets with each client personally to inform him or her of the change and explain how he will be able to meet the client’s individual needs with the new firm.

“Ultimately, it is the client’s decision,” Bowe says. “Business should continue as usual for them. And the move should be as smooth a process as possible.”

© 2013 Investment Executive. All rights reserved.