The market downturn has brought difficult times to financial services firms and their advi-sors; and the advisors surveyed for this year’s Dealers’ Report Card were quite open in discussing whether their firms offered the necessary support to deal with the repercussions of the financial crisis.
The firms that drew praise from their advisors for their support have put an emphasis on communicating with their advisors by means of conference calls and meetings. They have also circulated relevant information to guide advisors through this rough patch and to help them communicate better with their clients.
“There are more conference calls,” says an advisor in Ontario with Montreal-based Peak Financial Group. “They are being proactive.”
Adds a Peak advisor in British Columbia: “There are constant updates from management. There are also webcasts and emails as well as direct communication, from the president all the way down. Peak is really good in that respect. There is an open-door policy.”
Vince Valenti, president of Ottawa-based Independent Planning Group Inc., employs a similar approach and says he’s always there to listen to his advi-sors when they need someone to talk to.
“Sometimes, I’ll get phone calls from advisors who just want to talk about some of the challenges they’re going through,” Valenti says. “I’m always happy to talk to those advisors … and I also think advisors talking to one another is really critical, especially with everything we’ve been through in the past few months.”
But in addition to these conversations, Valenti says, IPG has offered seminars and email updates to help its advisors: “With seminars, it’s about getting as many money managers [as possible] to come in just to give an outlook on the market. It’s an educational process.”
That focus on education is criti-cal, says Kevin Regan, executive vice president of financial services with Winnipeg-based Investors Group Inc. That’s because the downturn has generated a high level of emotions in clients — and preparing advisors to speak with clients is one of the best ways to help them succeed in these trying times.
“The market downturn is all about emotions … and where clients might feel elements of doubt about the appropriateness of their plan, advisors are set into high gear in times like these. They reaffirm with clients the decisions they made,” Regan says. “We have had a multi-departmental group of people to focus on this and make sure we’re reaching out and listening to what our advisors are telling us they need. We don’t want people to feel abandoned or left to their own devices. This is a three-way relationship: the client, the advisor and the firm.”
For the most part, Mississauga, Ont.-based Investment Planning Counsel‘s focus has also been on helping advisors communicate better with their clients, says Chris Reynolds, IPC’s president.
“We have been very heavy on the road doing client nights, and we provide a resource in one of our analysts. I would have to say, without exaggeration, that we have done 100 client nights in the past six months,” says Reynolds. “We’ve done extensive special reports and conference calls with advisors, clients and money managers, explaining what is going on.”
Says an IPC advisor in Manitoba: “The firm is continually sending materials. Management has been approachable and I think they understand the issues we’re facing out here.”
That said, some advisors were disappointed with their firms’ efforts to communicate. Many also said they hoped for more resources to better deal with client concerns.
Says an advisor in Ontario with Toronto-based Assante Corp.: “They’ve done and said nothing — not a word from the senior people. Every now and then, they have to say, ‘I hope you are doing OK,’ because a lot of us aren’t. There is no empathy, no kind words, and it’s pathetic. I don’t think they know what to say, but that’s not an excuse.”
Other advisors, however, are true to their independent nature and say they don’t expect much from their dealers in terms of support during these tough times because they can handle things themselves.
“I am probably not accessing as much support as there is available,” says an advisor in Alberta with Burlington, Ont.-based Manulife Securities Inc. “I feel I don’t have to. I feel confident enough and I have enough tools.”
Adds a fellow Manulife advisor in Ontario: “We are independent advisors, so I need to know what’s going on. But it’s not for the firm to have to give support.”
@page_break@That message is echoed by advisors with Calgary-based Portfolio Strategies Corp., a firm that aims to attract independent and entrepreneurial advisors.
Says a Portfolio Strategies advi-sor in Alberta: “There have been no phone calls and no support, but I’m OK with that. I run my business separately; the firm does compliance, and that’s it. I get my support elsewhere.” IE