Investment advisors are an informal lot when it comes to giving feedback to their firms. Rather than dealing with formal processes, the advisors surveyed for Investment Executive’s 2015 Brokerage Report Card are happiest when they feel they have the ear of management and see results from their feedback.
Firms that tend to shine in the “firm’s receptiveness to advisor feedback” category typically do so because advisors feel they have direct access to senior executives. Sometimes, independent brokerages have an advantage over the bank-owned firms in that respect because of their smaller size. Case in point: advisors with Calgary-based Leede Financial Markets Inc. gave their company the top rating (9.3) in the category and cited management’s availability as a key reason for their praise.
“We really have an open-door policy. You can talk to the CEO or even the chief financial officer directly,” says a Leede advisor in British Columbia. “I’ve been at a lot of firms where you could never do that.”
Vancouver-based Canaccord Genuity Wealth Management’s receptiveness rating improved significantly year-over-year, to 7.4 from 6.9, because advisors are happy with the firm’s non-hierarchical structure.
“There’s a flat management style,” says a Canaccord advisor in B.C.. “So, not only I can talk to my branch manager, but I can also pick up the phone and talk to the chairman.”
For Stuart Raftus, named the firm’s president in January 2014, it’s not about just waiting for advisors to call, but taking the initiative to meet with them in person: “We spent a lot of time – myself personally and other members of the management team – out on the road, visiting the branches, having collective group meetings, having individual meetings and very much creating a culture of an open-door policy.”
In contrast, some advisors with bank-owned firms said that having multiple levels of management often makes it difficult to feel that their voices are heard.
“It can get a bit complicated,” says an advisor in Quebec with Toronto-based RBC Dominion Securities Inc. (DS).
Still, advisors find their way to get their message across. Despite their challenges, DS advisors rated their firm at 8.2 for receptiveness – and that’s due largely to the responsiveness of branch managers.
“The branch manager sends ideas or suggestions right to the top,” says a DS advisor in Ontario, “and I’m very happy to say we’ve seen improvements as a result.”
One bank-owned firm that saw its receptiveness rating rise significantly this year, to 7.9 from 7.4, is Toronto-based ScotiaMcLeod Inc. Not surprisingly, the firm’s advisors said a major reason was that they have more access to senior management.
“Management has listened to me over the past two years and worked on my behalf to change things,” says a ScotiaMcLeod advisor in Ontario.
Since Alex Besharat took over as managing director and head of the firm more than a year ago, he has focused on keeping his strategy simple: meet with advisors in person and keep the communication lines open: “We’re available to talk to advisors [in] whatever forum on whatever subject.”
At the end of the day, what matters most to advisors regarding receptiveness is that they see results from their feedback.
For example, Mississauga, Ont.-based Edward Jones touts its open communication with advisors. “Everyone knows how to reach us on our direct line,” says David Lane, the firm’s managing principal in Canada.
Edward Jones advisors, for their part, said they do appreciate the firm’s efforts to solicit feedback, backing that up with an 8.1 receptiveness rating. However, that rating dropped from 8.6 last year because of what advisors perceive as the firm’s lack of follow-through on their feedback.
“I can pick up the phone and call head office, and they do listen,” says an Edward Jones advisor in B.C. “They may not change things, but they do value my opinion.”
When it comes to deciding what feedback upon which to act, Lane says, Edward Jones evaluates a suggestion based on the impact it could have on clients and the overall productivity of its branches. One change that will be happening at the firm this autumn as a result of advisor feedback is the introduction of a portfolio rebalancing software tool for fee-based accounts, which will allow advisors to show clients how their portfolio should be adjusted.
Advisors with Toronto-based TD Wealth Private Investment Advice (TD Wealth PIA) also appreciate that their firm is asking for more feedback, but they questioned whether that leads to action.
“It’s hard to give a good rating when our feedback doesn’t result in changes,” says a TD Wealth PIA advisor in Atlantic Canada.
TD Wealth PIA, which received a category-low rating of 6.4, collects feedback formally and informally from advisors and takes action where possible, says Dave Kelly, the firm’s president and national sales manager. He adds that the firm recently launched an addition to its succession plan program as a result of advisor feedback.
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