As Canadians debate the role investment advisers should play in managing their money, there is one argument that continues to get overlooked: The help they provide to companies who need to finance.
With the wealth management industry under siege, as regulators crack down on fees and low-cost funds hurt total revenues, there is all sorts of chatter about the future for investment advisers. The industry earthquake has also raised questions about the effects on individual investors and what type of advice they are able to obtain.
What is often overshadowed by these two important groups is a third, but equally important, party: Canadian corporations. Many rely on retail investors to buy shares whenever they finance, and investment advisers usually serve as the intermediary between them and the individual buyers.
Without advisers, or with fewer of them, it's possible there will be less demand for new share issues – something that worries Bay Street bankers, but rarely catches the broader public's attention.
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