“There are many advisors out there who don't really have an [agreement] with the dealer that [says,] ‘When I leave, these clients are mine and I can sell this relationship’ ... their life's work is just scattered to the winds [when they retire]”
Vipool Desai,
Ara Compliance Support
“My portfolio was shoved under my door. I looked at it, I made my decisions, I went on with my life. But today, I actually meet people … and understand their needs for their future”
Paul Harris,
Harris Douglas Asset Management
“There’s just the flexibility. You're no longer reporting to a manager, and a manager’s manager … You're really a business unto yourself, operating in the niche that you want, making the decisions that you want”
Emily Burt,
Cardinal Capital Management
In Partnership with
Unpacking the benefits of independent wealth management
Experts break down how advisors can reap financial benefits and achieve professional fulfillment
Read on
Devin Cabel
National Bank Independent Network
Emily Burt
Cardinal Capital Management
Paul Harris
Harris Douglas
Vipool Desai
Ara Compliance Support
Industry experts
BETWEEN THE challenges of the pandemic, mounting regulatory pressures, and a variety of other forces shaping the industry over the past two years, countless advisors at traditional corporate wealth-management firms are at a crossroads.
The past two years of remote work have changed the relationship that advisors have with their dealers. Without the comforts of high-end office space, desk-side IT support, and administration tools at their fingertips, they are rethinking how they want to manage their business in the future, and what role their dealers should play in it. Should they be status quo and manage their books the same way they always have? Or leave it all behind to explore the world of independent wealth management and all its opportunities?
Devin Cabel, relationship manager and business development manager for National Bank Independent Network in the prairies, recently chaired a roundtable discussion with three industry experts to go through the potential benefits – as well as some challenges and lessons – for advisors looking to break away.
Earnings and succession planning
One advantage of being an owner-advisor comes down to earnings. Rather than splitting client revenue with a dealer through a compensation grid, advisors with their own practices can potentially keep more of the earnings for themselves.
“In many cases … you'll find the cost of running your own business is lower, and in many cases significantly lower [compared to what you’re paying your dealer],” says Vipool Desai, president of Ara Compliance Support.
Owning a wealth-management business, advisors can take advantage of specific tax planning, income splitting, and estate planning practices that have significant financial benefit, and that they would
not have the opportunity to implement while working for a corporate institution. Managing a substantive book of business in their own corporation, as opposed to having to negotiate ownership of it with a dealer firm, would also allow them to benefit from having a greater enterprise value once they decide to sell their practice or pass it on as they retire.
“There are many advisors out there who don't really have an [agreement] with the dealer that [says,] ‘When I leave, these clients are mine and I can sell this relationship,’” Desai says. “So for those individuals, their life's work is just scattered to the winds [when they retire].”
Achieving strategic autonomy
An owner-operator advisor also has more control over day-to-day or strategic decisions – what products-and-services mix they want to offer clients, for example, or how to do marketing – as opposed to negotiating with a dealer on whether to implement their ideas. Beyond that, Desai says advisors who own and operate their own firms stand to enjoy a great deal of professional and personal satisfaction, given the increased freedom.
Paul Harris, partner and portfolio manager at Harris Douglas Asset Management, made his first foray into independence in 2002 with two long-time colleagues. At that point, he had spent over a decade as an institutional portfolio manager, including 10 years with the asset-management arm of one of Canada’s big-six banks.
“My portfolio was shoved under my door. I looked at it, I made my decisions, I went on with my life,” Harris says. “But today, I actually meet people and speak to them … and understand their needs for their future.”
Traditional financial firms have changed radically compared to Harris's early career. People making their start today are likely to get quickly verticalized into a narrow specialization – credit research, for example, or high-yield debt analysis – which
gives them a very limited view of the overall business they’re working in. As business owners, advisors will have full visibility and control of their business strategy and can make decisions at the macro level.
Getting ready for the leap
To prepare for the pivot to independence, Harris and his colleagues consulted other independent owners, who offered encouragement and shared numerous hard-earned lessons (for example: “If someone says they’re giving you $1 million, they’re lying to you. They’re going to give you $250,000”). But even with that, the move from working at a large firm to becoming independent was a reality check for Harris.
“There were many things that I just had to learn,” he says. “[At my old firm,] somebody did all our technology for us. We had to figure out all that.… It's one thing to analyze a company and understand how that company runs. It's another thing to run a business.”
At a purely intellectual level, Desai says it’s not difficult for advisors to set up their own firms, especially with all the service providers available today to assist with such transitions. But the key to success, he says, really resides in advisors’ mindsets – even well before they actually leave their current employer dealer.
“Advisors should think of their dealers as being super-service providers.… [They are] a provider of the services you need to run your business,” he says. “The process is really identifying what are those key services that my current super-service provider is providing, and how can I replicate that in my own firm?”
Aside from that, he stresses the importance of accepting setbacks along the way. Whether it’s delays in registering their own firms, technology issues, or an untimely departure of a key employee, independent advisor-owners have to be able to carry on even as they encounter potholes on the road to growth.
“These are blips. These are illusions, just like how the market has swings,” Desai says. “We have ups and downs, but long-term, the market goes up in the same way.”
Emily Burt, executive vice president and board chair at Cardinal Capital Management, advises would-be independent advisor-owners to find the right partners – ideally, ones who can thrive managing growth and dealing with the changes that naturally come with building a business.
Another pearl of wisdom from Burt: choose a niche, and stick to
it. “As a small, independent firm, you can't be everything to everyone. Just do one thing and do it really well and hold that over the years,” she says. “The referrals from the clients who appreciate you for that will follow.”
For Desai, advisors who are considering the jump to independence should think more like operators. Before jumping off the diving board, advisors, he says, should look at their pre-tax earnings and estimate how much they’d make in future. Drawing up timelines, interviewing key service providers, and talking to other firms about the general process and risks are also very important activities to prepare.
“The greatest source of fear is lack of knowledge.… Once you know something, then it's easier to act,” he says. “For those folks who have what it takes, who have that basic desire and can understand what's involved, getting that knowledge dissipates the fear, and from there you can take action.”
A middle path to independence
There are other paths to independence aside from being an owner-operator. Cardinal Capital Management, a large firm whose presence spans Canada, takes great pride in the fact that it is one-hundred percent employee-owned.
According to Burt, advisor teams that have joined from across the country benefit from being perceived as business owners by their own clients, and have greater opportunities to customize their offering and client service style than a traditional firm would typically allow.
“There’s just the flexibility. You're no longer reporting to a manager, and a manager’s manager, and a manager’s manager’s manager on the weekly and monthly and quarterly sales numbers,” Burt says. “You're really a business unto yourself, operating in the niche that you want, making the decisions that you want.”
Advisors at larger, more traditional institutions may be limited in their ability to serve clients because of the firm’s need to produce short-term results for shareholders. But at independent firms like Cardinal, decisions are made with a longer-term focus on clients’ interests.
“The changes we make, whether it's operationally or within our investments, it's all client-driven.… It's not based on a share price,” Burt says. “It's a big change that puts the advisor and the firm and the client's interests all in alignment.”
The desire to strike out as an independent doesn’t necessarily come right away; according to Burt, that tends to come after advisors have earned a certain level of expertise over a number of years in the industry. At that point, they can be confident enough in their abilities to practice even outside the auspices of a traditional financial institution.
“They become known and respected in their communities, and their clients [will be] there for them, for the relationship that they have … not the company that [they're] with,” Burt says. “And I think once they realize that, they make the switch and never look back.”
Options for independence: consider a structure that suits your working style
Full independence
National Bank Independent Network (NBIN) began as one of the first clearing services for independent advisors in Canada. Today, we are Canada’s leading provider of custody, trade execution, and brokerage solutions, all backed by the financial strength and ongoing support of the National Bank of Canada.
Whether you are just starting out or have a well-established business, our goal is the same: to provide support and services that allow you to achieve your vision, your way. Ignite your entrepreneurial spirit, confident in the reliability and support of NBIN.
Find out more
Devin Cabel is regional vice president responsible for business development & relationship management in the prairie region at National Bank Independent Network. With over 15 years’ experience in the financial services industry, Devin is dedicated to supporting the growth and advancement of independent portfolio management and introducing broker firms. Throughout her career, Devin has been focused on increasing market share at some of the most successful independent fund companies in Canada, and was previously a certified financial planner (CFP). Devin is passionate about the independent wealth management space, and enjoys working with advisors to explore new opportunities that lead to more freedom and entrepreneurship.
Regional vice president – relationship management & business development
National Bank Independent Network
Devin Cabel
Emily is the executive vice-president and chair of the board at Cardinal Capital Management, Inc., in Winnipeg, Manitoba. She leads the business development and operations teams at Cardinal. Working with institutional and private clients across Canada and the United States, she assists clients in building and managing investment portfolios. Prior to joining Cardinal, Emily gained a number of years of financial services experience in Toronto. Emily has a Master of Business Administration degree from the Schulich School of Business, and holds the chartered financial analyst (CFA) designation. Emily currently serves as president of CFA Society Winnipeg and also sits on the board of CFA Societies Canada.
Executive vice-president
Cardinal Capital Management
Emily Burt, MBA, CFA
After graduating with a BA from the University of Toronto, Paul started his investment career in foreign exchange at Bank of America in 1988. After a stint in foreign exchange at TD Securities, he transferred to TD Asset Management, where he received his CFA in 1994 and become a senior portfolio manager. After a decade at TD Asset Management, Paul moved to Fiduciary Trust International in New York as a senior portfolio manager of global equities for institutional clients. Returning to Toronto three years later, he co-founded Avenue Investment Management. In 2019, Paul founded Harris Douglas Asset Management, offering investing with financial planning and high-level client servicing.
Partner & portfolio manager
Harris Douglas
Paul Harris
Vipool is president of Ara Compliance Support. Vipool and his team of compliance professionals effectively serve as a virtual head office compliance department, supporting the designated chief compliance officer. Ara Compliance Support provides an organized and rational process for managing compliance, so that management can focus on running its business. The program is exclusive to Ara and was developed to address the unique needs of independent portfolio managers and investment fund managers. The firm currently provides support to over 40 independent businesses across Canada.
President
Ara Compliance Support
Vipool Desai
In Partnership with
Unpacking the benefits of independent wealth management
Experts break down how advisors can reap financial benefits and achieve professional fulfillment
Read on
Vipool Desai
Ara Compliance Support
Paul Harris
Harris Douglas
Emily Burt
Cardinal Capital Management
Devin Cabel
National Bank Independent Network
Industry experts
BETWEEN THE challenges of the pandemic, mounting regulatory pressures, and a variety of other forces shaping the industry over the past two years, countless advisors at traditional corporate wealth-management firms are at a crossroads.
The past two years of remote work have changed the relationship that advisors have with their dealers. Without the comforts of high-end office space, desk-side IT support, and administration tools at their fingertips, they are rethinking how they want to manage their business in the future, and what role their dealers should play in it. Should they be status quo and manage their books the same way they always have? Or leave it all behind to explore the world of independent wealth management and all its opportunities?
Devin Cabel, relationship manager and business development manager for National Bank Independent Network in the prairies, recently chaired a roundtable discussion with three industry experts to go through the potential benefits – as well as some challenges and lessons – for advisors looking to break away.
“There are many advisors out there who don't really have an [agreement] with the dealer that [says,] ‘When I leave, these clients are mine and I can sell this relationship,’” Desai says. “So for those individuals, their life's work is just scattered to the winds [when they retire].”
Achieving strategic autonomy
An owner-operator advisor also has more control over day-to-day or strategic decisions – what products-and-services mix they want to offer clients, for example, or how to do marketing – as opposed to negotiating with a dealer on whether to implement their ideas. Beyond that, Desai says advisors who own and operate their own firms stand to enjoy a great deal of professional and personal satisfaction, given the increased freedom.
Paul Harris, partner and portfolio manager at Harris Douglas Asset Management, made his first foray into independence in 2002 with two long-time colleagues. At that point, he had spent over a decade as an institutional portfolio manager, including 10 years with the asset-management arm of one of Canada’s big-six banks.
In January, MPA held a roundtable discussion with four customer-owned banks: Heritage Bank, Beyond Bank, Teachers Mutual Bank Limited and Bank Australia. We were also joined by two brokers who use mutual banks for their clients’ business: Christopher Lee and David Merison.
As brokers such as these struggle with the greater scrutiny that has following the royal commission, customer-owned banks are stepping up to the plate, providing a service that highlights the value of human interaction. With questions around living expenses forcing a heavier workload on brokers, this personal touch can be vital.
During the roundtable, which took place at Otto restaurant in Sydney, the group discussed the unique value proposition that customer-owned banks offer, particularly with the lack of shareholders they have to cater for. While other
“The value proposition that mutual banks provide is getting some more attention,” he said. “We’ve known for a long time that the customer satisfaction that members get through mutual organisations is very high compared to the major banks. I think we’ve struggled to convert that into member growth, but more recently, with it being so front of mind with customers, it’s definitely starting to grow.”
Growth in the sector is giving the mutual banks their “time to shine”, said Beyond Bank head of third party Darren McLeod, adding that they had worked hard over the last two years on selling their proposition.
Referring to the previous year’s roundtable, when the catchphrase of the day was that the customer-owned banking sector was the industry’s “best-kept secret”, McLeod said, “I think that secret is finally getting out.”
“I don’t think we’re doing anything different,” he added. “We’re doing what we’ve always done, but there’s more customer uptake because the market’s in a place where people are now looking, and they’re willing to try it.”
Agreeing that the royal commission had had an effect on consumers heading to the mutual banks, Mark Middleton, head of third party at Teachers Mutual, said there was a growing groundswell. Not only were borrowers looking for alternative options but aggregators were adding more choice to their panels, he said.
Offering a different perspective, Middleton said consumers were becoming more aware of responsible lending and social responsibilities and asking about things like climate change. Teachers Mutual is not only carbon neutral but gives back around 6.8% of its net profits to community grants and other projects.
“It’s particularly topical right now, with the bushfires happening around the country, that people will start looking for who is doing things to make a difference, not just for this generation but future generations,” Middleton said.
“I think we’ve been actually ahead of the curve; no one’s been really aware of it, but the last 12 months it’s become more prevalent.”
Middleton also talked about the wider recognition the sector was receiving, as reflected in its high NPS scores.
“From all the mutuals around the table here, clearly when customers are being recommended by brokers to come to us, they’re voting with their feet,” he said.
McLeod agreed that a lot of the growth was coming out of the third party space.
“We’ve all been working hard in the broker space over the last couple of years as more brokers use customer-owned banks,” he said. “I think the growth is definitely in the broker channel and the work all of us have been doing in the business. The growth we’re talking about is definitely coming from brokers.”
Brokers have also been an important factor for Bank Australia. Senior relationship manager Fernando Lemos said the bank had been bolstering its support around the third party distribution space. He added that it was not only about diversification of products but also diversification of lenders, and this helped brokers cater for a wider client base.
“I think brokers are really starting to become aware of what we’re about and what we stand for,” Lemos said.
“There’s a marketing edge as well: they can go out there and promote themselves. They’re not just a line to a particular organisation; they can look after certain types of clients.”
Agreeing, McLeod added that the extra regulation, such as the caps on interest-only lending, had also had an effect on the sector.
“We all had to slow down for the caps,” he said. “But when it opened up, the brokers who used four lenders were now using a lot more, so it really gave us a chance because we’re in that larger group. So it’s really opened up the market, because it was so confusing in terms of who was doing what – who’s doing construction, who’s doing interest-only, who’s doing investment – so it’s opened up the market and it gives us a shot at getting the business."
One of two brokers joining the roundtable, David Merison from Vault Plus Mortgage and Finance Consultancy said the demographic of people looking to borrow money wanted choice, rather than relying on those who came straight out of the banks and were simply agents for those lender
“We’ve got to hold ourselves open and come up with some innovative solutions, and that means introducing some lenders they wouldn’t always think of,” he said.
Finsure Finance and Insurance broker Christopher Lee said his primary objective was to put the largest amount of money in his client’s pocket rather than the bank’s pocket, and the mutuals offered a cheaper alternative, as well as a more diverse product range.
Not just that but Lee simply enjoys dealing with the mutuals more.
“There’s just the flexibility. You're no longer reporting to a manager, and a manager’s manager, and a manager’s manager’s manager on the weekly and monthly and quarterly sales numbers,” Burt says. “You're really a business unto yourself, operating in the niche that you want, making the decisions that you want.”
Advisors at larger, more traditional institutions may be limited in their ability to serve clients because of the firm’s need to produce short-term results for shareholders. But at independent firms like Cardinal, decisions are made with a longer-term focus on clients’ interests.
“The changes we make, whether it's operationally or within our investments, it's all client-driven.… It's not based on a share price,” Burt says. “It's a big change that puts the advisor and the firm and the client's interests all in alignment.”
The desire to strike out as an independent doesn’t necessarily come right away; according to Burt, that tends to come after advisors have earned a certain level of expertise over a number of years in the industry. At that point, they can be confident enough in their abilities to practice even outside the auspices of a traditional financial institution.
“They become known and respected in their communities, and their clients [will be] there for them, for the relationship that they have … not the company that [they're] with,” Burt says. “And I think once they realize that, they make the switch and never look back.”
National Bank Independent Network (NBIN) began as one of the first clearing services for independent advisors in Canada. Today, we are Canada’s leading provider of custody, trade execution, and brokerage solutions, all backed by the financial strength and ongoing support of the National Bank of Canada.
Whether you are just starting out or have a well-established business, our goal is the same: to provide support and services that allow you to achieve your vision, your way. Ignite your entrepreneurial spirit, confident in the reliability and support of NBIN.
Find out more
Devin Cabel is regional vice president responsible for business development & relationship management in the prairie region at National Bank Independent Network. With over 15 years’ experience in the financial services industry, Devin is dedicated to supporting the growth and advancement of independent portfolio management and introducing broker firms. Throughout her career, Devin has been focused on increasing market share at some of the most successful independent fund companies in Canada, and was previously a certified financial planner (CFP). Devin is passionate about the independent wealth management space, and enjoys working with advisors to explore new opportunities that lead to more freedom and entrepreneurship.
Regional vice president – relationship management & business development
National Bank Independent Network
Devin Cabel
Emily is the executive vice-president and chair of the board at Cardinal Capital Management, Inc., in Winnipeg, Manitoba. She leads the business development and operations teams at Cardinal. Working with institutional and private clients across Canada and the United States, she assists clients in building and managing investment portfolios. Prior to joining Cardinal, Emily gained a number of years of financial services experience in Toronto. Emily has a Master of Business Administration degree from the Schulich School of Business, and holds the chartered financial analyst (CFA) designation. Emily currently serves as president of CFA Society Winnipeg and also sits on the board of CFA Societies Canada.
Executive vice-president
Cardinal Capital Management
Emily Burt, MBA, CFA
After graduating with a BA from the University of Toronto, Paul started his investment career in foreign exchange at Bank of America in 1988. After a stint in foreign exchange at TD Securities, he transferred to TD Asset Management, where he received his CFA in 1994 and become a senior portfolio manager. After a decade at TD Asset Management, Paul moved to Fiduciary Trust International in New York as a senior portfolio manager of global equities for institutional clients. Returning to Toronto three years later, he co-founded Avenue Investment Management. In 2019, Paul founded Harris Douglas Asset Management, offering investing with financial planning and high-level client servicing.
Partner & portfolio manager
Harris Douglas
Paul Harris
Vipool is president of Ara Compliance Support. Vipool and his team of compliance professionals effectively serve as a virtual head office compliance department, supporting the designated chief compliance officer. Ara Compliance Support provides an organized and rational process for managing compliance, so that management can focus on running its business. The program is exclusive to Ara and was developed to address the unique needs of independent portfolio managers and investment fund managers. The firm currently provides support to over 40 independent businesses across Canada.
President
Ara Compliance Support
Vipool Desai
In Partnership with
Unpacking the benefits of independent wealth management
Experts break down how advisors can reap financial benefits and achieve professional fulfillment
Read on
Vipool Desai
Ara Compliance Support
Paul Harris
Harris Douglas
Emily Burt
Cardinal Capital Management
Devin Cabel
National Bank Independent Network
Industry experts
BETWEEN THE challenges of the pandemic, mounting regulatory pressures, and a variety of other forces shaping the industry over the past two years, countless advisors at traditional corporate wealth-management firms are at a crossroads.
The past two years of remote work have changed the relationship that advisors have with their dealers. Without the comforts of high-end office space, desk-side IT support, and administration tools at their fingertips, they are rethinking how they want to manage their business in the future, and what role their dealers should play in it. Should they be status quo and manage their books the same way they always have? Or leave it all behind to explore the world of independent wealth management and all its opportunities?
Devin Cabel, relationship manager and business development manager for National Bank Independent Network in the prairies, recently chaired a roundtable discussion with three industry experts to go through the potential benefits – as well as some challenges and lessons – for advisors looking to break away.
“There are many advisors out there who don't really have an [agreement] with the dealer that [says,] ‘When I leave, these clients are mine and I can sell this relationship,’” Desai says. “So for those individuals, their life's work is just scattered to the winds [when they retire].”
Achieving strategic autonomy
An owner-operator advisor also has more control over day-to-day or strategic decisions – what products-and-services mix they want to offer clients, for example, or how to do marketing – as opposed to negotiating with a dealer on whether to implement their ideas. Beyond that, Desai says advisors who own and operate their own firms stand to enjoy a great deal of professional and personal satisfaction, given the increased freedom.
Paul Harris, partner and portfolio manager at Harris Douglas Asset Management, made his first foray into independence in 2002 with two long-time colleagues. At that point, he had spent over a decade as an institutional portfolio manager, including 10 years with the asset-management arm of one of Canada’s big-six banks.
In January, MPA held a roundtable discussion with four customer-owned banks: Heritage Bank, Beyond Bank, Teachers Mutual Bank Limited and Bank Australia. We were also joined by two brokers who use mutual banks for their clients’ business: Christopher Lee and David Merison.
As brokers such as these struggle with the greater scrutiny that has following the royal commission, customer-owned banks are stepping up to the plate, providing a service that highlights the value of human interaction. With questions around living expenses forcing a heavier workload on brokers, this personal touch can be vital.
During the roundtable, which took place at Otto restaurant in Sydney, the group discussed the unique value proposition that customer-owned banks offer, particularly with the lack of shareholders they have to cater for. While other
“The value proposition that mutual banks provide is getting some more attention,” he said. “We’ve known for a long time that the customer satisfaction that members get through mutual organisations is very high compared to the major banks. I think we’ve struggled to convert that into member growth, but more recently, with it being so front of mind with customers, it’s definitely starting to grow.”
Growth in the sector is giving the mutual banks their “time to shine”, said Beyond Bank head of third party Darren McLeod, adding that they had worked hard over the last two years on selling their proposition.
Referring to the previous year’s roundtable, when the catchphrase of the day was that the customer-owned banking sector was the industry’s “best-kept secret”, McLeod said, “I think that secret is finally getting out.”
“I don’t think we’re doing anything different,” he added. “We’re doing what we’ve always done, but there’s more customer uptake because the market’s in a place where people are now looking, and they’re willing to try it.”
Agreeing that the royal commission had had an effect on consumers heading to the mutual banks, Mark Middleton, head of third party at Teachers Mutual, said there was a growing groundswell. Not only were borrowers looking for alternative options but aggregators were adding more choice to their panels, he said.
Offering a different perspective, Middleton said consumers were becoming more aware of responsible lending and social responsibilities and asking about things like climate change. Teachers Mutual is not only carbon neutral but gives back around 6.8% of its net profits to community grants and other projects.
“It’s particularly topical right now, with the bushfires happening around the country, that people will start looking for who is doing things to make a difference, not just for this generation but future generations,” Middleton said.
“I think we’ve been actually ahead of the curve; no one’s been really aware of it, but the last 12 months it’s become more prevalent.”
Middleton also talked about the wider recognition the sector was receiving, as reflected in its high NPS scores.
“From all the mutuals around the table here, clearly when customers are being recommended by brokers to come to us, they’re voting with their feet,” he said.
McLeod agreed that a lot of the growth was coming out of the third party space.
“We’ve all been working hard in the broker space over the last couple of years as more brokers use customer-owned banks,” he said. “I think the growth is definitely in the broker channel and the work all of us have been doing in the business. The growth we’re talking about is definitely coming from brokers.”
Brokers have also been an important factor for Bank Australia. Senior relationship manager Fernando Lemos said the bank had been bolstering its support around the third party distribution space. He added that it was not only about diversification of products but also diversification of lenders, and this helped brokers cater for a wider client base.
“I think brokers are really starting to become aware of what we’re about and what we stand for,” Lemos said.
“There’s a marketing edge as well: they can go out there and promote themselves. They’re not just a line to a particular organisation; they can look after certain types of clients.”
Agreeing, McLeod added that the extra regulation, such as the caps on interest-only lending, had also had an effect on the sector.
“We all had to slow down for the caps,” he said. “But when it opened up, the brokers who used four lenders were now using a lot more, so it really gave us a chance because we’re in that larger group. So it’s really opened up the market, because it was so confusing in terms of who was doing what – who’s doing construction, who’s doing interest-only, who’s doing investment – so it’s opened up the market and it gives us a shot at getting the business."
One of two brokers joining the roundtable, David Merison from Vault Plus Mortgage and Finance Consultancy said the demographic of people looking to borrow money wanted choice, rather than relying on those who came straight out of the banks and were simply agents for those lender
“We’ve got to hold ourselves open and come up with some innovative solutions, and that means introducing some lenders they wouldn’t always think of,” he said.
Finsure Finance and Insurance broker Christopher Lee said his primary objective was to put the largest amount of money in his client’s pocket rather than the bank’s pocket, and the mutuals offered a cheaper alternative, as well as a more diverse product range.
Not just that but Lee simply enjoys dealing with the mutuals more.
According to Burt, advisor teams that have joined from across the country benefit from being perceived as business owners by their own clients, and have greater opportunities to customize their offering and client service style than a traditional firm would typically allow.
“There’s just the flexibility. You're no longer reporting to a manager, and a manager’s manager, and a manager’s manager’s manager on the weekly and monthly and quarterly sales numbers,” Burt says. “You're really a business unto yourself, operating in the niche that you want, making the decisions that you want.”
Advisors at larger, more traditional institutions may be limited in their ability to serve clients because of the firm’s need to produce short-term results for shareholders. But at independent firms like Cardinal, decisions are made with a longer-term focus on clients’ interests.
“The changes we make, whether it's operationally or within our investments, it's all client-driven.… It's not based on a share price,” Burt says. “It's a big change that puts the advisor and the firm and the client's interests all in alignment.”
The desire to strike out as an independent doesn’t necessarily come right away; according to Burt, that tends to come after advisors have earned a certain level of expertise over a number of years in the industry. At that point, they can be confident enough in their abilities to practice even outside the auspices of a traditional financial institution.
“They become known and respected in their communities, and their clients [will be] there for them, for the relationship that they have … not the company that [they're] with,” Burt says. “And I think once they realize that, they make the switch and never look back.”
National Bank Independent Network (NBIN) began as one of the first clearing services for independent advisors in Canada. Today, we are Canada’s leading provider of custody, trade execution, and brokerage solutions, all backed by the financial strength and ongoing support of the National Bank of Canada.
Whether you are just starting out or have a well-established business, our goal is the same: to provide support and services that allow you to achieve your vision, your way. Ignite your entrepreneurial spirit, confident in the reliability and support of NBIN.
Find out more
Emily is the executive vice-president and chair of the board at Cardinal Capital Management, Inc., in Winnipeg, Manitoba. She leads the business development and operations teams at Cardinal. Working with institutional and private clients across Canada and the United States, she assists clients in building and managing investment portfolios. Prior to joining Cardinal, Emily gained a number of years of financial services experience in Toronto. Emily has a Master of Business Administration degree from the Schulich School of Business, and holds the chartered financial analyst (CFA) designation. Emily currently serves as president of CFA Society Winnipeg and also sits on the board of CFA Societies Canada.
Executive vice-president
Cardinal Capital Management
Emily Burt, MBA, CFA
After graduating with a BA from the University of Toronto, Paul started his investment career in foreign exchange at Bank of America in 1988. After a stint in foreign exchange at TD Securities, he transferred to TD Asset Management, where he received his CFA in 1994 and become a senior portfolio manager. After a decade at TD Asset Management, Paul moved to Fiduciary Trust International in New York as a senior portfolio manager of global equities for institutional clients. Returning to Toronto three years later, he co-founded Avenue Investment Management. In 2019, Paul founded Harris Douglas Asset Management, offering investing with financial planning and high-level client servicing.
Partner & portfolio manager
Harris Douglas
Paul Harris
Vipool is president of Ara Compliance Support. Vipool and his team of compliance professionals effectively serve as a virtual head office compliance department, supporting the designated chief compliance officer. Ara Compliance Support provides an organized and rational process for managing compliance, so that management can focus on running its business. The program is exclusive to Ara and was developed to address the unique needs of independent portfolio managers and investment fund managers. The firm currently provides support to over 40 independent businesses across Canada.
President
Ara Compliance Support
Vipool Desai
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Devin Cabel is regional vice president responsible for business development & relationship management in the prairie region at National Bank Independent Network. With over 15 years’ experience in the financial services industry, Devin is dedicated to supporting the growth and advancement of independent portfolio management and introducing broker firms. Throughout her career, Devin has been focused on increasing market share at some of the most successful independent fund companies in Canada, and was previously a certified financial planner (CFP). Devin is passionate about the independent wealth management space, and enjoys working with advisors to explore new opportunities that lead to more freedom and entrepreneurship.
Regional vice president – relationship management & business development
National Bank Independent Network
Devin Cabel
Control over day-to-day or strategic decisions relating to the practice
Increased professional and personal satisfaction
Increased freedom to make decisions based on clients’ interests
Enhanced revenue potential – not restricted to dealer’s compensation grid
Improved ability to apply tax-planning strategies to preserve the value of the business
Potential for greater enterprise value realized upon retirement
Benefits of owning an independent wealth management firm
Set up your own advisory firm either as a portfolio manager or an introducing broker
Independent partnership
Join/partner with another portfolio manager and share the responsibility of running an independent business
Employee of an independent
Take a step toward entrepreneurship without the full commitment of running your own shop by joining a full-service broker-dealer or a portfolio management firm as an employee
Source: National Bank Independent Network, Going independent: what to consider
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