It has Never Been Better to be at an Independent Wealth Management Firm

More and more Financial Advisors are realizing just how much value there is in the Platforms at Independent Wealth Management Firms, for both their clients and themselves. As a result, Canada’s top independent advisory firms are experiencing explosive growth, and while a good deal of that growth has certainly come from organic asset growth, most noticeably the growth has come through attracting top advisors from bank-owned brokerages and national mutual fund dealers. Why then, are so many Advisors beginning to rethink the platform they are working under for their clients?

From our perspective at Optimize Wealth, we are hearing about and seeing some key systemic trends afoot in our industry which are drawing so many high-end Financial Advisors to firms such as ours.

1. Multi-Family Office Advisor Platform: Clients and Advisors are looking for firms such as ours which have gone to the extent of hiring in-house accountants and lawyers who will actually prepare their clients’ tax returns, along with designing and executing their wills; Advisors want to provide the full suite of services to their clients which requires also having in-house insurance specialists, mortgage specialists, financial planners, all to augment the core investment management services which Advisors have historically built their practice around.  
2. Institutional Level Money Management Available to Retail Clients: Now more than ever, there is a need to be able to offer clients with investment accounts which resemble how a Pension would structure their investments. Being able to offer investment models which include an allocation towards asset classes such as private debt and private equity in a very diversified and prudent manner has never been more important, not only from a returns perspective but also from a risk management standpoint. 
3. Client and Advisor Focused Compensation: The constant re-jigging of compensation structures, or “Grids”, at many of the bank-owned brokerages and national mutual fund dealers has simply gone too far for most Advisors and is too one-sided; and to be clear, that side is neither the client’s nor the Advisor’s. In contrast, the successful independent advisory firms have structured their compensation to reflect just how much value the Advisor and the Client bring to the table. For a long-term relationship to work in the financial advisory sector, it must make sense first and foremost for the Client, the Advisor second, and everything else flows from there.  
4. Leading Technologies Need to be Leveraged and Implemented: The Firms which are gaining the most market share now are those who have been able to successfully leverage technology to help their Advisors counsel their clients and grow their wealth management practices. Technology is a critical tool to drive growth in the advisory business and the firms which are nimble and forward-thinking enough to provide their advisors with these critical tools enable their advisors to thrive in today’s more competitive environment.
5. Sometimes Advisors just need a Change in Culture: Advisors at the bank-owned brokerages and national mutual fund dealers are telling us that they are feeling more and more restricted as to the types of products they can use with their clients, or that all of the constant sales targets are making them feel more like Salespeople than Accredited Financial Advisors. Something we are adamant about at Optimize is to ensure that Advisors have the freedom and ability to build the wealth management practice they always wanted to, in their own way, and on their own terms. You only live once and so why not advise your clients and build your career accordingly.   

Will the bank-owned brokerages and national mutual fund dealers adapt to these changes? I am sure they will, but I am also sure that it won’t be anytime soon. And in the meantime, we have never been more excited to meet with Financial Advisors about joining our robust platform and continue building out the next generation in Wealth Management.

Financial Advisors who want to see how our platform at Optimize Wealth can give them a major competitive edge can reach out to me for a confidential discussion at (416) 907-6733 or email [email protected]

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About The Author: Matthew J. McGrath, Senior Partner, Head of Advisory Channel and Corporate Development at Optimize Wealth Management, has been in the Wealth Management Industry for over 25 years. At the beginning of his career, Matthew started out as a Portfolio Manager at RBC and quickly climbed the ranks to become one of their youngest Executive Council Vice Presidents.

Since making the move to Optimize Wealth Management over ten years ago as a Portfolio Manager, Matthew has become Senior Partner, Head of the Advisory Channel and Corporate Development, who has helped Optimize reshape the investment industry through it’s full service approach, complete transparency and total objectivity. Client’s are provided with a full suite of Financial Services including Comprehensive Wealth Advice, Financial Planning, Investment Management, Tax Preparation, Will/Estate Planning, Mortgage and Insurance Advisory Services. This is all done through a No Load Fee Structure. 

As Head of our Advisory Channel, Matthew is now fixated on helping our associates, advisors, portfolio managers, and branch teams to continue to deliver this same exceptional service and premium advice to our clients.

Financial Advisors who are interested in the Optimize Wealth Platform and who would like to learn more by having a confidential discussion with Matthew should contact him through his LinkedIn page or his email: [email protected]