The recession has made it necessary for advisors to intensify their communication efforts to assuage the concerns of stressed clients. But what have investment dealers been doing to support their advi-sors in these trying times?

In this year’s Brokerage Report Card, Investment Executive asked advisors to rate their firms’ support during the downturn. It seems that the communication thing works both ways.

Advisors say they are dealing with challenging questions from their clients — and they need more than moral support from their firms. Rather, they want practical tools that help them talk to their clients. So, it’s the firms that have intensified their own communications with advisors and provided client-ready information that advisors rated highly.

Overall, advisors are happy with the support they are receiving from their dealers, rating their firms’ performance an 8.1 on average. They also indicate this support was important, as the overall average importance rating for this category was 8.6.

But the numbers also indicate that some advisors rely on their firms for support more than others. No surprise, this difference is often a generational one.

The average age of advisors interviewed for the Brokerage Report Card was 46; the average number of years in the industry was 16.8 years. Advisors older than 46 rate the importance of support during the downturn lower than their younger counterparts do.

“I’ve been through a ton of these [recessions],” says a 56-year-old Richardson Partners Financial Ltd. advisor on the East Coast. “So, the firm’s support isn’t too important to me.”

In contrast, younger advi-sors rely on their firms more heavily. Says a 44-year-old advisor with BMO Nesbitt Burns Inc. in Ontario: “It’s at times like this that you realize how important management is. It is my first [recession]. So, it was extra important for me.”

It stands to reason, then, that two of the three firms that scored well above the average — Toronto-based boutiques GMP Private Client LP and Richardson Partners, and Mississauga, Ont.-based independent Edward Jones — tend to have more experienced advisors.

In fact, both Richardson Partners and GMP executives say their advi-sors’ experience is a marker of success in these tough times. Says GMP CEO James Werry: “Our advisors are all experienced and have been through tough market conditions. That has put us in good stead.”

And experienced advisors appreciate their firms’ efforts. “The firm has been spectacular, from top to bottom,” says a Richardson Partners advisor in Western Canada. “There were regular tours from the senior managers and visits to each of us.”

Adds a colleague in Ontario: “There were conference calls with the Richardson family.”

Communication was high on the list at Edward Jones, as well. “We receive calls on Monday mornings and we have a television station that broadcasts news from the firm on our terminals,” says an Edward Jones advisor on the East Coast. “We also receive analyst phone calls and conference calls once or twice a week.”

“The firm has been forthcoming with information for our clients,” adds an Edward Jones advi-sor in Ontario. “There are marketing pieces and seminars for how to deal with the downturn. There are lots of people to refer to.”

On the flip side, it was the lack of practical tools that accounted for some of the lower scores.

“The firm was actually pretty good,” says a Nesbitt Burns advi-sor on the East Coast. “But the client-facing tools could have been more useful.”

“I’m not sure what I expected,” says an advisor with Toronto-based CIBC Wood Gundy on the West Coast. “But there wasn’t a whole lot I could share with my clients.”

“We’ve had conference calls,” adds a Wood Gundy advisor in Ontario. “But having the same conference call every week doesn’t help.”

Some firms left their advisors feeling underwhelmed. Advisors with Montreal-based National Bank Financial Ltd. and Toronto-based TD Waterhouse Private Investment Advice have not heard enough from their firms.

“There could be more regional manager involvement and they could give us more feedback,” says a TD Waterhouse advisor in Ontario. “From a head-office standpoint, there should be more emails and conference calls.”

“We just finally got a brochure about the downturn,” an NBF advisor in British Columbia points out.

Advisors with Toronto-based ScotiaMcLeod Inc. also found their firm’s support during the downturn lacking, but management has since stepped up its efforts.

@page_break@Just after IE concluded its research in February, ScotiaMcLeod launched its “Are you ready for the direction ahead?” initiative — a two-month, $450,000 advertising campaign in 25 newspapers.

“It is about connecting with investors who have maybe lost their direction,” says Hamish Angus, head of ScotiaMcLeod. “‘Come and see ScotiaMcLeod and our advisors will be able to help you.’ There has been a lot of marketing help to get advisors out there while this window of opportunity is here.”

Some advisors think the best way for firms to help those with less experience is to open up communication among the generations. “I don’t think we hear enough from senior people,” says a 44-year-old ScotiaMcLeod advisor. “They should give us more suggestions.”

But even some weathered advi-sors are suffering from uncertainty during this crisis. Says a 59-year-old Richardson Partners advisor in B.C.: “This is my fifth recession. Presumably, I should know what to do, but that remains to be seen.” IE