Of all the firms surveyed for Investment Executive’s 2012 Report Card series, six stood out among their advisors. Although these firms focus on different channels of the financial services industry and each has a unique business model, all were praised for their stability, the freedom they give advisors to make objective product choices, leading-edge technology and top-notch support services, as well as a strong brand recognition.
When averaging the “IE rating” (which represents the average of all categories for each firm) and the “overall rating by advisors” (the rating out of 10 that advisors bestowed on their firm) for all the companies surveyed for this year’s Report Cards, only six firms had ratings of 9.0 or higher: Mississauga, Ont.-based PFSL Investments Canada Ltd. (9.5), Toronto-based Richardson GMP Ltd. (9.4), Calgary-based PPI Solutions Inc. (9.4) and three Toronto-based firms, TD Canada Trust (9.1), Royal Bank of Canada (a.k.a. RBC; 9.1) and Macquarie Private Wealth Inc. (9.0).
Advisors with these firms boasted about their company’s stability – both financially and in their management’s ranks. Says a PFSL advisor in Atlantic Canada: “Our leadership is second to none in the business. We have so many people who have been here for 20-plus years.”
The impact of a strong management team was a theme shared by advisors with PPI Solutions, who regard their firm’s leadership as one of the firm’s most positive attributes. In particular, PPI Solutions advisors praised their management team for being open to feedback and on track with the firm’s strategic focus. “I really appreciate the advantage here of having open doors to management,” says a PPI Solutions advisor in Atlantic Canada. “You know that the help is always there.”
Advisors with these top six firms also were keen to point out that they have complete freedom in recommending products to their clients. Says an advisor in Ontario with Richardson GMP: “Management doesn’t get in our way. [They let] us make the most appropriate decisions for our clients. Our independence is critical.”
In fact, executives at many of these firms point out that freedom and independence are ingrained in their firm’s culture. “Our firm’s values,” says Andrew Marsh, CEO of Richardson GMP, “are to hire really good people and to allow them to run their businesses and work with their clients as they see fit as professionals, which gives them full objectivity in recommending things to their clients.”
Executives with the top six firms also state that it is up to advisors to determine their sales goals or product mix – and which products best suit their clients’ needs. “We don’t have quotas on production; we don’t tell [advisors] when to get up and work,” says Jeff Dumanski, PFSL’s president and chief marketing officer. “In its entirety, [PFSL] allows them flexibility to do what they want, where they want.”
The top six firms also thrive in “technology tools and advisor desktop.” Although the overall average performance rating in this category was 7.6, all six firms had a rating of 8.0 or higher. In fact, PFSL (9.6), PPI Solutions (9.2) and Richardson GMP (9.1) had ratings higher than 9.0.
Advisors praised these firms for having a full suite of technological tools and support services at their disposal. But, more important, advisors feel that their firm gives them leading-edge technology and advice. They also feel that management has followed through on promises regarding their technology platforms. Says a PPI Solutions advisor in Atlantic Canada: “They have put their money where their mouths are and invested in technology and other things that give me a competitive edge.”
And in terms of the other support services, advisors with these six firms consistently commented on the fact their companies constantly communicate about whatever changes they make. “[There] is open communication at all levels throughout the organization,” says a Richardson GMP advisor in British Columbia, “from advisors and management to the board and back office.”
As for the two banks among these top six – TD and RBC – brand recognition was most important. In fact, TD and RBC advisors felt that their respective bank’s strong and well-known brand has helped them to build stronger relationships with clients. Says an RBC advisor in Ontario: “Working with the RBC brand behind you is a big plus – especially right now, as clients are looking for a stable, secure institution.”
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