“We’ll probably see (that scale of loss) and there’s no reason for it,” Kathy Waite, an advisor with Eureka Investor Guidance recently told WP. “What’s this going to do to the economy? All of those people being beat out of the business and it’s illogical for them to make such a decision without fully assessing the impact.”
Thornton believes the wealth management industry will do a better job of retaining advisors, but does anticipate mortgage brokering and other related sales jobs in financial services will see their numbers grow as a result.
“I don’t think it will be as high as 25 per cent; I could see 10-15 per cent of financial advisors making the transition to mortgage brokering or banking,” he said.
Anecdotally, one mortgage broker has encountered advisors who have left the business due, in large part, to compliance – and those numbers are expected to swell in the wake of CRM2.
“I have known many certified financial advisors who have quit that business and this is what I hear: too much compliance, too high continuing education requirements just to stay current with compliance and taxation and too many sophisticated clients are switching to online ETFs and bypassing advisors,” Ron Butler of Verico Butler Mortgage wrote on WP sister site, MortgageBrokerNews.ca. “So their world is tough.”