Main Chart: How advisors rated their firms

Toronto-based Royal Bank of Canada and TD Canada Trust, the top two deposit-taking institutions rated in last year’s Report Card on Banks and Credit Unions, have maintained their strong positions on top of the leader board in this year’s survey. In fact, both banks received even stronger ratings from their advisors this time around.

Advisors with both banks cited stability and company-wide commitments to customer service among the reasons they rated their respective firms so highly. In particular, advisors were happy with how management had helped guide them through the recent turbulent economic conditions.

RBC advisors gave their firm an improved rating in every single category in this year’s survey. The ratings in seven categories, in particular, were higher by half a point or more. Overall, this vaulted Canada’s largest bank to the top spot with an IE rating of 9.1.

Advisors with RBC gave the firm a perfect score of 10 in “firm’s stability,” the only such score given to any firm in any category in the survey. RBC advisors say the firm’s status as the largest bank in Canada gave clients confidence and reassurance.

In addition, RBC management says that it works hard to communicate with its advisors. This includes hosting frequent conferences and advisor roundtables with senior management, says Michael Walker, vice president and head of branch investments with RBC: “Giving advisors direct access to our top leadership goes a long way.”

RBC advisors also praised their firm’s support services, including support for developing financial plans, for wills and estate planning, and for tax planning. Says an RBC advisor in Manitoba: “I can pick up the phone with a question and get an answer right away.”

RBC advisors also said they appreciate the support, as well as product availability, they get in terms of advising and serving high net-worth clients. “We do look after clients very well and have the ability to get them into different spots as they need it,” says another RBC advisor in Manitoba.

RBC also received strong reviews from its advisors in the “firm’s consumer advertising” category — particularly for the bank’s wide-ranging branding campaign featuring the bowler-hatted “Arbie” character and for RBC’s sponsorship of the 2010 Winter Olympics in Vancouver.

And RBC advisors lauded their firm on its ethics in general, saying they’re given the freedom to make objective product choices for clients. Says an RBC advisor in Atlantic Canada: “[We can be] creative in tailoring solutions to fit individuals.”
@page_break@Meanwhile, at TD, advisors surveyed for this year’s Report Card gave their firm higher scores in almost every category compared with last year’s Report Card. In general, TD advisors liked the bank’s stability, strategic focus and leadership.

In particular, they rated their firm higher by half a point or more in five categories: “firm’s marketing support for the advisor’s practice,” “client account statements,” “products and support for high net-worth clients” and “firm’s delivery on promises made.”

“[TD’s leadership] can be trusted with what they say and do — there’s great leadership at all levels,” says a TD advisor in Atlantic Canada. “And they’re concerned with the employee experience.”

And several TD advisors surveyed for the Report Card said they felt that the bank supported their career aspirations and their need for work/life balance. Says a TD advisor in Ontario: “There is a lot of opportunity to move in terms of career opportunities and a lot of support in terms of mentorship. They balance a culture of respect for employees and customers.”

TD advisors also expressed admiration for the quality and breadth of the bank’s suite of in-house mutual funds and other investment products. “We ask customers where they want to go,” says a TD advisor in Ontario, “and [then] we give them the products to get there.”

The strength of TD’s lineup of proprietary products has been a differentiating point in the bank’s favour, says Thomas Dyck, president of TD Mutual Funds: “If you look at the events of the past 24 months in the financial markets, it’s really been a proving time for brands. From a brand perspective, we’re really all about a disciplined approach to investing. It’s at the foundation of everything we do — from the funds we create to the guidance and support we provide all the advisors. We don’t deviate from the approach.”

But among all the roses TD advisors gave their firm this year, there was one thorn. Advisors gave TD a lower score in the “freedom to make objective product choices” for clients category. Its rating of 8.6 is down by 0.6 of a point vs last year.

The reason? Several TD advisors indicated that the firm’s procedures make it difficult for them to deviate from recommended products.

IE