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With their sound plans and strategies, financial advisors help clients to maximize their wealth and gain more freedom. Advisors themselves yearn for the same thing, says Michaël Fortin, Chief Executive Officer at FORTÜNA Wealth Management. He will help them achieve that, offering an enticing new 100% commission model and a unique work culture.
“Advisors can grow frustrated when they perceive that their compensation doesn’t align with the effort and time invested. Beyond compensation, inefficiencies in back-office operations and long administrative processes can add to this frustration. With our structure, advisors gain a meaningful voice and a more efficient and equitable working environment,” says Fortin.
FORTÜNA is a new Greater Toronto Area-based Mutual Fund Dealer, with a novel approach for advisors.
It starts with income. Historically across the industry, fees and commissions generated by an advisor’s book of business go to the dealer or financial institution. They retain a significant portion, and pay a percentage to the advisors.
At FORTÜNA, advisors collectively cover the administrative costs associated with maintaining the dealer. Fortin calls it a Shared Dealer Structure. These expenses are calculated annually and split. In exchange, advisors will receive 100% of the well-earned commissions generated by their business.
Fortin views the dealer as a flow-through structure, where funds are transferred to the advisors without any third party taking any percentage at all. It’s possible because Fortin believes in shifting the focus away from profit accumulation and toward empowering advisors. He feels advisors give 100% to their clients, so they deserve 100% of the commissions. “We offer unparalleled income,” he says.
That’s not the only compelling proposition.
There’s also robust, efficient, and customized back-office support, based on the advisors’ desires and needs. With that, advisors can deliver even better service to their clients. The idea is to reduce administrative work by about 50%, meaning more time to devote to clients and revenue-generating activities.
“We offer unparalleled income.”
“Advisors are looking for easy-to-use systems that facilitate the interaction between them and their clients,” says Fortin. “By offering a top-notch back office and dedicated staff support, advisors can redirect their attention toward meeting their clients’ needs.”
He pledges that advisors will also have a say in FORTÜNA’s operations and continuous improvement, whether around the back office, development strategies or other major decisions. With a platform for their ideas, insights, and feedback, FORTÜNA advisors will have an opportunity to influence positive change. “Their voice will be heard,” Fortin says.
Advisors will also have great autonomy at FORTÜNA, with access to diverse mutual funds and managed solutions, and the freedom to recommend whatever works best for their clients.
The managed solutions offer a range of investment strategies and asset allocations, providing access to exclusive investment opportunities that are typically only available to large institutional investors. These solutions are designed and managed by experienced investment strategists, and are tailored to meet the unique needs of clients with less fees.
While financial advisors employ such solutions to help clients secure their retirement, “sometimes they don’t think about their own,” says Fortin. One way they can at FORTÜNA is by knowing that they own their book of business.
“Advisors dedicate their time, efforts, and years to serve clients, and should have a capital ownership right,” says Fortin.
Having a book of business that generates 100% commission can significantly enhance its marketability and attractiveness. That drives maximum value for a financial advisory business when advisors are thinking of selling it and planning their exit strategy.
As advisors look for new opportunities, Fortin is hoping to attract seasoned ones who have an entrepreneurial mindset and who are open to shaking up the status quo. With the right structure and support, advisors can have what they need for their clients to prosper — and them, too.
