Advisor payrolls balloon

Advisor payrolls balloon

Advisor payrolls balloon

For a Canadian perspective, WP reached out to Sybil Verch, both an advisor and western regional manager with Raymond James Ltd.

“There is definitely an increase in the number of teams and size of the teams,” says Verch. “It is driven by a desire to deliver exceptional service to clients. With the changes in rules [CRM2] there’s more pressure on advisors to articulate and deliver exceptional value for the fees clients are paying, so that then rolls out into bigger teams... And no one advisor can do it all.”

To understand why this is happening one need look no further than the Family Office, while still quite new to Canada but booming in the U.S., where advisors act as the quarterback for a large team of experts, something wealthy clients are demanding in today’s wealth management industry.

Not only does a team concept allow for better service to clients, it also ensures succession planning isn’t forgotten by the advisor, which is crucial to client retention.

“The clients have a right to [succession planning]. The advisor should have a succession plan in place, a back-up plan if the advisor gets hit by a truck tomorrow,” says Verch. “It’s a huge benefit to the client working with advisors who are part of a team.”

So, if you’re one of the few still operating without a team, the industry trend suggests you might want to give it second thoughts. 

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