Regulatory consultations, business transitions and AI adoption kept advisors reading the news this year.artisteer/iStockPhoto / Getty Images
The wealth management industry is in flux. With both advisors and clients aging, books of business are up for grabs and a new generation is buying. Meanwhile, an amalgamated self-regulator is looking to implement policy, businesses are expanding beyond traditional geographic boundaries, and everyone is wondering how they’re supposed to be using artificial intelligence.
These stories highlighted a changing industry:
How some advisors are expanding their geographic footprint
Five years since the onset of the COVID-19 pandemic, advisors are still adjusting how they work. One benefit? Working with clients across the country. Improvements in communication technology and comfort with virtual meetings have allowed advisors to continue serving clients who move and to accept referrals in other jurisdictions. But there are also drawbacks. Here’s how advisors have adapted.
As CIRO consults on advisor incorporation, harmonization of rules proves challenging
The Canadian Investment Regulatory Organization (CIRO) wants to level the playing field on advisor incorporation, but experts say there are key tax, regulatory and investor protection details to iron out. CIRO released a policy paper earlier this year that outlined three potential approaches. Here’s what industry players had to say.
Buyer beware: Values matter when purchasing another advisor’s book of business
It’s not just about the price. Advisors looking to purchase a book of business need to ensure their values align with the seller’s. Otherwise, adding assets under management may put the long-term viability of the business at risk. Advisors shared these tips.
Buying a book of business? Negotiate price and ask for extras
Of course, the price still matters. But so do clauses and clawback arrangements that account for client attrition. Here are some of the areas up for negotiation.
Comprehensive vs. targeted financial plans – advisors weigh in
Comprehensive financial plans provide a valuable analysis of a client’s entire financial picture and a roadmap for the future. But for those who find the larger financial planning process daunting or have a pressing decision to make around a pension or inheritance, a more targeted plan may also offer value. Advisors weigh in on both approaches.
Why more portfolio managers are offering financial planning as part of their services
Why are so many advisors working as both financial planners and portfolio managers? It comes down to client demand for services. Clients want holistic wealth management but, at the same time, they’re interested in fiduciary and discretionary investment management. Here’s the case for wearing both hats.
Clients may be open to AI-generated investment advice, but industry still adapting
From soaring stocks like Nvidia Corp. driving markets to new tools creeping into everyday life, it was impossible for advisors – and everyone else – to ignore artificial intelligence in 2024. But we’re still waiting to see what role it will play in investment advice. A study from the Ontario Securities Commission showed investor confidence in AI is growing.
Industry associations make case for annuities, crypto funds as qualified investments
Earlier this year, the Department of Finance sought suggestions from stakeholders for how to modernize the rules around which investments can be included in registered accounts. Crypto funds and annuities were among the products industry groups said should remain on the government’s list of what’s allowed.
Investment industry association changes course as it aims to become the home of independents
With more investment dealers looking to obtain dual registration to operate both as an investment dealer and a mutual fund dealer, the Federation of Mutual Fund Dealers rebranded as the Federation of Independent Dealers. The organization is now a lobbyist and a collaboration forum for independent investment dealers as well as for mutual fund dealers.
What clients want from a successor when their advisor retires
While advisors may have circled a date for their retirement, many neglect to share that information with clients until the last minute. Here’s why it’s so hard to pull off a successful succession.