Brokerage firms look long and hard for talented, seasoned and motivated branch managers, but some advisors aren’t sure managers actually add much value to their business.
In fact, in response to queries in this year’s Brokerage Report Card, these advisors suggest that branch managers who also handle their own books of business represent unwarranted competition.
Advisors gave a slight boost to their assessment of manager performance this year, lifting the average score to 8.0 from 7.9, but the overall importance of a branch manager in the advisor’s eyes dropped to 8.0 from 8.2.
“We need someone interested in promoting business development and our image rather than just compliance and checking trades,” says a MacDougall MacDougall & MacTier Inc. advisor in Quebec. “I’d like him to help me develop my business. I believe a branch manager should not have a book. How can he help me when he’s the competition?”
Although younger advisors tend to see branch managers as lifesavers who help them establish their footing in the industry, some older advisors see managers as thorns in their sides.
“Branch managers don’t really matter to me because I’m self-motivated,” says a ScotiaMcLeod Inc. advisor in Manitoba. “The only thing he should be involved in is compliance, rookies and support staff.”
TD Waterhouse Private In-vest-ment Advice has a training program designed for branch managers that articulates the skill set that the firm looks for — primarily, competency in the business and compliance.
“We’re constantly on the lookout for talent,” says Mike Reilly, TD Waterhouse’s president and national sales manager. “We have substantially increased the amount of professional managers in the firm. Branch management is one of the big keys in our business.”
Managers of large TD Waterhouse branches are non-producing, but those in smaller branches can have books of business. However, the company makes it clear to managers with books of business that they are managers who produce, not producing managers.
Although this may sound productive from the firm’s point of view, some advisors feel differently.
“He is a producing manager, so he is completely out of the loop,” says a TD Waterhouse advisor in Ontario of his branch manager. “He doesn’t work for the brokers.”
Vancouver-based Canaccord Capital Inc. finds it difficult to accommodate all branches with non-producing managers. Bob Larose, executive vice-president, private client services, says that this is a situation in which the branch manager has to be able to wear two hats to avoid conflict.
“They have to service their clients, but they also have to service their brokers,” he says. “They have a tough job because their clients are their own personal clients. Then, they have their other clients to support — the brokers in their branch.”
Bank-owned RBC Dominion Securities Inc. of Toronto has a large percentage of non-producing branch managers. Out of 100 — 80 full-time and 20 assistants — about 40 are non-producing. In smaller centres, producing branch managers have limited clientele.
David Agnew, managing director for DS, says a branch manager’s role is to run the branch and help the advisors build their business: “Branch managers are not competing with advisors within the branch. We are a profitable firm, so we don’t require all of our branch managers to have a book of clients. They are there to remove roadblocks and help train, coach and regulate compliance.”
Meanwhile, Winnipeg’s Wel-lington West Capital Inc. , which scored the highest in the category with a 9.5, insists on all branch managers being producers. “It’s very, very important that people are pulling on the oars of success here,” says chairman and CEO Charlie Spiring. “Our branch managers are only modestly compensated, so the big lift in compensation comes in ownership. We’ve been very successful making producing managers.” IE