Given the rapid pace at which the financial services sector continues to evolve, some financial advisors surveyed for this year’s Dealers’ Report Card said they’re feeling left behind because of their firms’ lacklustre efforts in relaying the information advisors need to do the best job possible.
This dissatisfaction is evident in the ratings advisors gave in the “firm’s effectiveness in keeping advisors informed” category. Specifically, advisors gave the category an overall average importance rating of 8.4 and an overall average performance rating of 7.4. That difference of a full point between the two ratings resulted in a tie for the fifth-highest “satisfaction gap” in the Report Card. In addition, advisors at five firms in the survey rated their firm lower by half a point or more year-over-year in this category. Only one firm’s rating rose by that same margin.
A trend among the firms that received the lowest ratings in this category was the significant changes they underwent recently. Advisors at those firms complained that their firm failed to provide consistent, helpful communication during these difficult transitions.
In the case of Toronto-based HollisWealth Inc., which had the greatest decline in its performance rating for the category, to 6.5 from 7.6 year-over-year, advisors complained about growing pains related to Quebec City-based Industrial Alliance Insurance and Financial Services Inc.’s acquisition of their dealer firm from Toronto-based Bank of Nova Scotia last year. Notably, HollisWealth’s advisors pointed to issues with communication during the integration process.
“Whatever [the firm’s management] has been communicating is either inaccurate or they haven’t been following up on it,” says a HollisWealth advisor in Ontario. “They’re not executing the way they should. I don’t know if they just bit off more than they can chew.”
Richard Legault, president of Montreal-based Industrial Alliance Securities Inc., says he’s not surprised that HollisWealth’s advisors are frustrated because of unexpected hiccups during the transition.
“Those things create frustration for advisors – that’s normal and we understand that,” says Legault. “But apart from an unknown or unexpected event, we’re making sure that we’ve put in place regular communication with all of our advisors [about] what’s happening and what’s coming.”
Advisors with Markham, Ont.-based Worldsource Wealth Management Inc. rated their firm’s effectiveness in keeping advisors informed at 6.4, down significantly from 7.3 last year. Worldsource’s advisors pointed to their firm’s poor communication during a recent changeover to Broadridge Financial Solutions Inc.’s Dataphile technology platform from Univeris Corp.’s eponymous platform that took place early this year.
“[Doing business] is so different before and after the [tech] system changes,” says a Worldsource advisor in Alberta. “There’s certain things we didn’t know that we needed to do, and [Worldsource’s management] didn’t inform us [about those new processes].”
However, there appears to be a disconnect between the communication efforts Worldsource advisors said they’re getting from their firm and what the firm reports it’s providing. For example, John Hunt, managing director of Worldsource, says the firm has provided updates consistently to help advisors through the transition: “Since Jan. 15, we have had daily email updates on conversion issues. And, more generally, we do keep advisors up to date with newsletters and postings on our website.”
In addition, Kathie Baran, vice president, head of operations and technology, with Worldsource, adds that the firm holds webinars twice a month about the conversion. Regarding all other forms of communication, she says, Worldsource keeps advisors informed with weekly and monthly materials, as well as at an annual conference.
Meanwhile, Calgary-based Portfolio Strategies Corp.’s advisors also gave one of the lowest ratings in the category, at 6.9, the same as last year, because of lack of communication related to staff turnover in the head office.
“Some communication issues are because of staff turnover – I know that. But [communication] still is not great,” says a Portfolio Strategies advisor in Alberta.
In response, Mark Kent, president and CEO of Portfolio Strategies, says the departures were “well communicated” and was surprised to hear advisors say a lapse in communication exists.
The firm typically updates advisors with new information from the regulators via email and hosts a national conference every September, Kent notes. In addition, the firm resurrected its quarterly e-newsletter in April (after research for this year’s Report Card was completed); it had been placed on hiatus for about a year.
Despite the general displeasure related to firms’ communication efforts, not all advisors shared the same sentiments. In fact, Toronto-based Assante Wealth Management (Canada) Ltd.’s advisors gave their firm a rating of 8.8 in the category – up from 8.3 last year and good for the highest performance score among all firms in the survey – because of timely updates and smooth communication.
“[Management] keeps up with what’s going on in the regulatory environment and is good at communicating that to us,” says an Assante advisor on the Prairies.