Steve Donald, newly appointed CEO of Assante Wealth Management (Canada) Ltd. in Toronto, has made a smooth transition into that role and is now looking to the next chapter for the firm, which, he says, is all about growth.
“The industry is moving toward bigger books of business,” he says. “Advisors have to be bigger, branches have to be bigger and firms have to be bigger because the cost of being in business is going up every single day.”
Moving into a new position during such difficult economic times doesn’t concern Donald, who oversees 800 investment advisors and $22 billion in assets under management. Looking at the year ahead, Donald says, he is focused on helping Assante advisors build their practices. The days of the small advisor, he says, are coming to an end.
In his view, the trend is already well underway because of rising demands in almost every area of the industry.
“The cost of technology, compliance and governance are increasing. And these are the things that I think, in a positive way, are helping take our business to a level of enhanced professionalism,” he says. “One thing about our business is that consolidation is inevitable. What we want to do is help our advi-sors position themselves in this marketplace so that they are better able to deliver service to their clients.”
Donald is no stranger to the advisors at Assante. He has been with the firm for the past six years. During that period, he worked closely with Joe Canavan, the former chairman and CEO of Assante, who, after completing a three-month sabbatical last summer, announced he was stepping down from his position on Nov. 11.
“I am very excited about this new position, but I approach it with mixed emotions because I have worked with Joe for a very long time,” says Donald. “But I think that relationship helps, in terms of having a seamless transition for our business and advisors.”
Canavan, Donald and Jamie Ross, senior vice president, wealth and estate planning, at Assante, are longtime colleagues who had worked together at Toronto-based Synergy Asset Management Inc., which Canavan had founded in 1998 and sold in 2003 to Toronto-based CI Financial Corp. The three men moved together when they switched to Assante, which was also purchased by CI in 2003. At Assante, they met up with Bob Dorrell, senior vice president, distribution services.
Donald joined Assante as chief financial officer, later becoming president and chief operating officer. He will continue on as president, along with his new role of CEO, while he searches for a new COO.
Canavan and Donald, along with Ross and Dorrell, have played an integral part in the redevelopment of Assante. Canavan is well known for his ability to restructure financial services companies: he was brought into CI to reshape Assante. From the time of the group’s arrival, Donald says, the management team set about eliminating silos within the firm, mostly by flattening the tiers of senior management.
Each member of the management team brings a particular talent to the table, says Donald. Ross has developed a new wealth planning and insurance support team for advisors, while Dorrell has built a business development and advisor services team; this last group focuses on practice support and helps advisors run their practices more efficiently, including marketing and advertising.
During Canavan’s summer sabbatical, Donald spent a lot of time meeting with advisors and clients across the country to find out how they were reacting to the altered financial environment. “I think that is our primary role,” Donald says, “to make sure we can support our advisors in supporting their clients.”
Once Canavan returned last fall and announced his departure, he met with advisors one last time, not only to say goodbye but also to let them know about Assante’s performance over the years.
Regular visits with each advisor is a tradition that Donald wants to maintain. He is interested in any concerns or comments advi-sors may have about his new leadership role.
One success that stands out for Donald is Assante’s strategy of servicing the full range of its clients’ financial needs. “Over the past six years, the firm has continued to build the resources that advisors need to provide integrated advice,” says Donald. “The investment component of a client’s portfolio is a fairly small part of what the typical Canadian needs, in terms of their wealth-management affairs.”
Looking ahead, Donald says, the major focus will be on continuing to build on Assante’s successful strategies rather than making significant changes. The firm has spent $10 million to roll out the first phase of its new integrated desktop platform for advisors, designed by Toronto-based NexJ Systems Inc.: it will be launched in the first quarter of 2010. Advisors will be able to tap into market research and portfolio performance reporting more easily. They will also have enhanced client access.
“The firm has gone through its first round of user-acceptance testing with the advisor team personnel and has received very strong reviews,” says Donald. “We believe that this will have a very positive impact on how an advisor carries on business, from an efficiency perspective and, more important, from a client-service perspective.”
Donald is a chartered accountant by training and began his career with Ernst & Young LLP in Toronto. But he knew from the beginning that being an accountant wasn’t for him. “I set out to be part of a business, effect change and grow that business. And I thought the training and perspective that accounting brings with it was good background for that,” he says. “Being an accountant was never something I set out to do; it was more of a tool that could be used to go out and make an impact in the business world.”
Donald stayed with Ernst & Young for nine years, working in the firm’s financial services practice. He finally decided to make a move after meeting the chief financial officer of Toronto-based SHL Systemhouse Inc. In 1996, he became the vice president of finance for the consulting and outsourcing business units of SHL Systemhouse. In 1998, while performing that role, Donald was introduced to Canavan, prompting the shift to Synergy Asset Management.
When Donald is not in the office, he tries to spend as much time as possible with his 12- and 15-year-old sons and his wife, Jane. Growing up on the West Coast, Donald has a passion for skiing and, along with his family, he often hits the slopes on weekends. IE
Taking over the reins at Assante
New CEO is well known to Assante’s advisors, having held several senior positions at the firm
- By: Clare O’Hara
- January 7, 2010 January 7, 2010
- 10:38