Financial advisors of all stripes know how valuable it is to maintain a steady level of two-way communication with their clients. And, according to the results of this year’s Brokerage Report Card, advisors expect the same commitment from their firms in maintaining a similar level of two-way communication.
For the first time, advisors surveyed for the Report Card were asked to rate their “firm’s effectiveness in keeping advisors informed” and their “firm’s receptiveness to advisor feedback.” The firms with the highest rankings in these categories tend to provide timely and relevant information to their advisors and have an open-door policy for management.
When it comes to keeping advisors informed, Toronto-based Macquarie Private Wealth Inc. appears to be doing a solid job. Advisors with that firm say they appreciate the communication from management at all levels.
“There is a road show every three months,” says a Macquarie advisor in Ontario, “in which upper management visits branches and holds meetings about any corporate changes.”
Even when a road show isn’t in town, Macquarie advisors still feel connected. A Macquarie advisor in British Columbia says he depends on weekly national conference calls with Earl Evans, Macquarie’s CEO and head, and with other members of management, as well as tips sent via email from the firm’s risk-management group, to keep him well informed.
Communicating frequently, and on a national scale, will continue to be a priority for Macquarie’s management. The firm has held two national conferences in the past two years, says Evans – one in Banff, Alta.; the other in Collingwood, Ont. And there are plans to hold another within the next year.
Vancouver-based Canaccord Wealth Management also places a priority on communicating with its advisors, says chief operating officer Tanya Bird McCann, who works in Toronto: “We do a number of things, such as national advisor calls, local branch calls, emails, town halls, intranet postings and targeted hard-copy distribution of articles.”
Canaccord advisors, however, have some gripes. Although they say there is a lot of communication from management, it is not always current.
“The information is sometimes delayed,” says a Canaccord advisor in British Columbia. “It goes to marketing for layout, then to compliance. I sometimes find out information through the media first, then from the firm.”
In addition to wanting information from their firm in a timely manner, advisors also want their voices to be heard.
Advisors with Toronto-based Richardson GMP Ltd., for example, say their firm is receptive to their feedback, and many appreciate the access they have to management.
“There is a phenomenal level of open communication between senior management and ourselves,” says a Richardson GMP advisor in Ontario. “I can call up the president right now if I want.”
Andrew Marsh, CEO of Richardson GMP, attributes this level of communication to the firm’s business model: “[We’re] very receptive because our advisors are shareholders and typically are seasoned professionals. It’s an open-minded, open forum and collaborative approach to everything we do.”
A more collaborative approach is something advisors with Toronto-based TD Waterhouse Private Investment Advice also look for from their management. Yet, many advisors with that firm don’t feel management shares the same values. In fact, advisors believe management isn’t interested in their input. Says a TD Waterhouse advisor in Ontario: “They are not receptive to people in the field.”
Mike Reilly, the firm’s president and national sales manager, says TD Waterhouse reaches out to its advisors through a twice-yearly survey and has an advisory council that brings ideas to management.
That said, Reilly admits he doesn’t like to waste time discussing things that he can’t act upon: “My style is direct. If [the answer is] no, then it’s a no. I have 1,200 people in my family, and what is being done is being done for all 1,200.”
© 2012 Investment Executive. All rights reserved.