New firm's CEO says she and business partner are in it for long haul and want to offer a truly customized experience for advisors
The word “independent” gets bandied around in the Canadian wealth management space. Numerous companies are battling it out to offer advisors an alternative to the big banks, publicly-traded companies or large-scale investment firms. But Designed Securities Ltd., a new entrant into the space, believes it offers advisors a pure independent model customized to their unique needs, business development plans and product preferences.
Gillian Kunza and business partner Michael Konopaski co-founded the Ontario-based firm, which received IIROC approval at the end of June 2021 and has already begun adding advisors, with the goal of providing advisors with a robust platform and full service – they have partnered with technology firm Mako Fintech and carrying broker Credential Qtrade Securities Inc. The clue is in the name, Designed, which signifies how carefully and bespoke its open architecture can fit an advisor’s business.
Kunza, CEO, said: “Independence truly has to mean that you don't have parent companies telling you what you can do. With a large public company it’s hard to say it’s independent because it’s always accountable to its external shareholders. We looked at [the industry] and said, ‘we really want to be purely independent’.”
While Designed is an IIROC firm, the co-founders are in the final stages of an MFDA approval as well and also looking at gaining registration as an Investment Fund Manager (IFM) in 2022. Its vision is to work simultaneously in all and Kunza told WP the mission is to help advisors find the best structure for their clients without forcing them to shift into a channel that may not be suitable for them. The key is not to be limited in a way they might be at other firms, and to allow advisors to explore their options now and for the future.
With a commitment to transparency and collaboration, their flat-fee dealer model has garnered a lot of attention, with an advisor pipeline already established for the fall.
However, Kunza stressed they are not motivated by a desire to create a short-term success and sell to the highest bidder. They want to create something they can run for the rest of their careers and beyond, something that can truly develop advisors over the long run.
Interest is coming from advisors across the country who feel limited by the banks or by those who want to get off a grid or are intrigued by its perspective in being more customized and truly independent.
“If you're more independent-minded, more entrepreneurial and want to run things your way, the banks are not really going to work for you,” she said. “We also feel that we have a compelling business proposition for people who might already be in the independent space but are looking around.”
Designed takes time to assess an advisor’s current business, future plans, and how best they can be accommodated to help build their practice in the long run. They have services built for large established books of business as well as smaller advisors, who are just starting out.
Kunza added: “We’re trying to be sensitive about how hard this industry has become for a smaller book of business. If you're not buying an advisory practice, or don't have a pre-established relationship within an existing practice, starting on your own is extremely difficult.”
Ultimately, Designed, which also has ownership opportunities for a limited time, wants to reaffirm what true independence is versus what Kunza calls “independence in name”.
She said: “We want to talk to advisors individually, and we want to narrow down what you need. We want to customize – it’s not about mass scale, it's about developing you specifically for where you're at, and working collaboratively with you so you can best serve your clients in the long run.”
