When the brokerage and Planners’ Report Cards go to press in the spring, it’s only a matter of time before the phone calls start pouring in from firms asking why they weren’t chosen to be in the surveys. Among those most perplexed are the small, independent dealers. Why, they ask, are they any different than the “big guys”?

Although small dealers don’t meet the criteria for participation in the earlier Report Cards — Investment Executive requires all participants to have a national presence and at least 200 registered reps — they do warrant some attention.

These firms run profitable businesses, they’ve built solid reputations within their communities and they often have all the bells and whistles of the big Bay Street players. But they are a fraction of the size. What’s more, they’ve managed to survive in an industry in which consolidation is seemingly inevitable.

So, in an effort to shine the spotlight on Canada’s little guys, IE has expanded its research to take a look in this issue at the regional dealers registered with the Mutual Fund Dealers Association, as well as those operating on the Investment Dealers Association of Canada platform.

This year’s participants, which were chosen based on their size (more than 25 advisors) and willingness to participate, are truly a mixed bag: some firms operate in multiple provinces and have more than 100 advisors; others are based in only a handful of cities and have fewer than 40 advisors. Some firms have been around for decades; others are relatively new. Some firms are primed for growth; others are adamant they will remain as they are.

As for methodology, the above results were gathered in much the same way as the previous Report Cards. IE’s team of researchers phoned about 30 advisors at each dealer and asked them to rate their satisfaction anonymously with various aspects of their firms on a scale of one through 10, with 10 being best. Individual responses were grouped to determine the average score for each firm in all categories.

In the instances when “n/a” appears, the firm does not offer that particular service or its advisors declined to respond. In the main chart (above), firms are grouped according to their platform — MFDA or IDA.

Finally, a note to small dealers: the Regional Dealers’ Report Card is a work in progress. IE recognizes that the seven firms featured in this issue represent only a fraction of the dealers that exist in Canada, and we’re looking to increase the number for next year. So, if you’re a small dealer on the way to bigger things, we want to hear from you. IE



Contact Lara Hertel at lhertel@
investmentexecutive.com.