When a group of financial professionals in Calgary decided they wanted to break free from the traditional fee grid, they created Laurier Capital Planning Inc. to do just that. The firm provides a 100% payout for mid-tier producers.

“Our objective was to build a dealership from the ground up, by advisors, for advisors,” says Victor Lee, the firm’s president, CEO and chief compliance officer. “We believe that the 100% payout model is here to stay and that we provide a great alternative to the traditional grid systems for the middle-of-the road producer.”

Lee, along with four other partners, started looking at the concept of merging the Mutual Fund Dealers Association of Canada payouts and insurance payouts under a single, flat fee in 2005. Two years later their idea came together.

They formed Laurier in 2007; it became a member of the MFDA in January.

“Most MFDA dealerships relied on a paper-based system that was cumbersome, expensive to maintain and, in some cases, expensive to streamline,” says Denis Albinati, Laurier’s vice-president of business development. “Starting from scratch became an interesting alternative. There’s a lot of very basic technology available that can allow a dealer to keep its costs in line and we are able to pass this on to the advisors. As a result, they receive a 100% payout.”

From a compliance standpoint, all agents are treated equally regardless of production, Lee says. “One hundred per-cent payout means 100% compliant — no exceptions,” he says. Advisors have no production targets or sales quotas and are not required to sell proprietary products. In addition, advisors who complete and maintain their certified financial planner designation receive corporate incentives and deductions, because their additional training makes them lower compliance risks, Albinati says.

The firm offers streamlined dealer services such as financial planning, investment advice, estate planning, taxation planning and business consulting, which are included in a monthly flat fee of $750. It also provides access to a business-development group that can provide smaller producers — including rookies — additional training and support on both the insurance and MFDA sides of the business.

When the team was developing its business model, a major strategy was to listen to what advisors were looking for in a firm. The team found that advisors with small to mid-sized books were looking for something much different from what a traditional grid provided them.

“Our flat-fee model is ideal for those who wish to do a mixed insurance/MFDA business and concentrate on financial planning,” says Albinati.

The firm is already purchasing books of business in Alberta, Saskatchewan and British Columbia to help advisors grow their businesses.

“We found that many advisors find themselves stuck at a certain book size,” says Albinati. “Our business model will allow them to grow by acquiring other books of business. We are actively negotiating book purchases and paying a premium for solid books of any size.”

Lee and Albinati know a thing or two about what advisors are looking for in a firm. Both have held various positions, including management and compliance roles, in a number of firms and organizations. Lee began his career with Winnipeg-based Investors Group Inc. in 1982, and went on to work in a number if firms, including Royal Bank of Canada, Regal Capital Planners of Calgary and Vancouver-based Rogers Group Financial Ltd.

Albinati began his career fresh out of university in 1977, when he joined Nesbitt Burns Inc. in Calgary and went on to work with what was then Vancouver-based McDermid St. Lawrence Securities. He switched careers and for 10 years held a management position in the heath care industry. He returned to financial services when he joined ScotiaMcLeod Inc. in Calgary.

In 2003 Albinati, was among a group of partners that purchased Calgary-based Generation Financial Corp. and helped grow its business to slightly less than $1 billion in assets from $280 million, before selling the firm to Professional Investment Services Inc., based in Australia, in 2006.

“Our team has a lot of varied experience and together we have learned a lot,” says Albinati. “Rather than buying a company, we decided we would build one from the ground up. It’s like buying a used car; you buy yourself some repair bills and we didn’t want that.”

What does the ideal Laurier advisor look like? Albinati says he looks not at book size but personality. The firm wants advisors who fit their flexible business model: independent advisors with solid compliance and administrative records.

@page_break@Currently, the firm has six advisors, with another 12 in various stages of negotiating with the firm and transferring their businesses. Lee hopes to grow the firm to 40 advisors by the end of the year and is confident that his goal is attainable.

“We are barely out of the gate and already we are receiving calls, so it appears we will achieve our target in relatively short order,” says Lee. “We are definitely on our way.”

Laurier has advisors in Calgary and Edmonton and has already applied for licenses in Saskatchewan, B.C. and Ontario. It is also negotiating several branch locations in Ontario.

“Our goal is to provide a network of services and referrals that supports the growth of advisors individually or collectively as a branch or region,” Lee says.

The firm also aims to support entrepreneurial advisors who wish to grow their businesses through acquisition, recruitment and training.

“If the business plan makes sense, we’ll look at it and craft an agreement as long as it meets our compliance standards,” says Lee.

Laurier is also exploring the idea of adding a “virtual assistant” service that would be aimed at mid-tier advisors who may need basic administration support but don’t want to pay for a full or part-time employee.

The firm is negotiating several referral agreements with IDA, real estate and mortgage firms.

“Ultimately, we wish to preserve the independence of the mid-tier producer who is interested in maintaining a smaller client base without compromising advanced customer service,” Albinati says. IE