The recent report by Advocis and PriceWaterhouseCoopers about the role small and medium-sized financial advisory businesses in Canada has generated a good amount of attention--and with good reason. The report provides a macro picture of how important the advisory business has become in Canada.
Commenting on the report, Byren Innes, senior strategic advisor at PwC, suggests that "We had a good idea of the numbers, but we didn't have a handle on the economics of this."
The report, Sound Advice: Insights into Canada's Financial Advice Industry
, released last week, highlights the significant economic contributions Canadian financial advisors make to the Canadian economy. The numbers captured in the report generate a fascinating and comprehensive view of this key economic sector.
According to the report, small and medium-sized financial advisory businesses directly employ 182,000 people, contribute $19 billion to GDP, account for 1.4% of Canadian GDP and 1.5% of total employment. Some 80,000 businesses provide financial advice to a mass market of 12 million Canadian households, 80% of who have less than $100,000 in financial assets and who pay for their financial advice largely through sales commissions.