As clients increasingly seek financial advice and planning support for a wide range of life concerns, some advisors say they’re shifting their hiring strategies to bring on more certified financial planners.fizkes/iStockPhoto / Getty Images
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The old saying, “The only constant is change,” is apt for the investment industry, which goes through several important changes every year.
In 2023, the long-awaited merger between the Mutual Fund Dealers Association of Canada and the Investment Industry Regulatory Organization of Canada finally took place. Rising, persistent inflation also continued, forcing advisors and their clients to review financial plans. And advisors’ roles continued to evolve dramatically.
Here are 10 articles on key trends taking place in the investment industry:
Under the Canadian Investment Regulatory Organization’s (CIRO) dual registration structure, there’s a registration category specific to a mutual fund advisor, which eliminates the red tape of proficiency upgrades. “They can continue to serve their clients same as before … as if they never joined a different dealer,” says Julie Gallagher, senior vice-president and chief compliance officer at iA Private Wealth Inc. “There’s no additional supervision.”
When the pandemic hit, insurers simplified the application process virtually overnight. They began allowing electronic rather than hard-copy signatures. In turn, consumers’ expectations around fast, easy-to-access life insurance products became a driving force for changes to underwriting. The result is a new, faster application process.
For some advisors, cross-border financial advice has recently become a growth area in their practice – a trend they only expect to increase as clients seek to navigate complex wealth management considerations on both sides of the border. Clark Linton, senior wealth advisor and portfolio manager at Raymond James Ltd. in Vancouver, estimates that some two-thirds of his practice’s recent client growth is on the cross-border side of his business, driven by demographic factors and the unique nature of the market.
Jason Evans, fee-only certified financial planner (CFP) at Evans Retirement Planning in Winnipeg, has opted to project inflation higher than the FP Canada guidelines, at 2.5 per cent versus 2.1 per cent, because he wants to acknowledge clients’ uneasiness in these unsettling times. “If we’re currently in the period of higher inflation, that’s going to have a longer-term impact on retirees’ ability to spend from their investments,” he says.
Imagine someone was looking for legal services and the first thing a prospective lawyer says is how they charge for their services as opposed to what they can do and what field of law they specialize in. Yet, this approach is commonplace in Canada’s financial services industry, compounded by public debates around billing models that pit one against another for superiority. It ignores anything to do with value, writes Jason Pereira, partner and senior financial consultant at Woodgate Financial Inc. in Toronto.
David Christianson, senior wealth advisor and portfolio manager at National Bank Financial Wealth Management in Winnipeg, has noticed a real shift in conversations with his baby boomer clients in the past decade. While these clients once revelled in discussions about rock-and-roll music gatherings, today’s chats mainly focus on health care and eldercare issues, which he now calls the largest growing area of his practice.
A technology arms race is underway among wealth management firms in Canada to retain and attract advisors. Specifically, they’re investing in advanced financial tools to ensure advisors can engage in more complex financial planning for clients, serve them better and gain an edge. Notably, several non-bank-owned wealth management firms are embracing the innovation fray, often able to adopt new financial planning software more quickly.
Months after the merger of Canada’s two major investment industry regulators, the new entity, CIRO, is getting down to the business of what the consolidation was meant to accomplish – improving efficiencies and harmonizing rules for member dealers and advisors. Globe Advisor reporter Deanne Gage sat down with CIRO’s chief executive officer, Andrew Kriegler, to discuss the new self-regulatory organization’s most pressing initiatives.
As clients increasingly seek financial advice and planning support for a wide range of life concerns, some advisors say they’re shifting their hiring strategies to bring on more CFPs. “In the past, the focus and emphasis were often more on investment advice, and now it’s become a more comprehensive and integrated financial planning approach,” says Kurt Rosentreter, portfolio manager with Manulife Securities Inc. and president of Upper Canada Capital Inc. in Toronto.
Many younger investors are interested in receiving comprehensive financial advice as the complexity of their financial situations grows along with their careers and assets. For some advisors, choosing to work with up-and-coming millennial, younger Gen X and even Gen Z clients – regardless of their assets – has meant implementing new business models and focusing on the short and long-term advantages of building these trusted relationships – both for clients and their practices.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
