Recent Supreme court decision – Insights
On November 9, the Supreme Court confirmed the constitutionality of the Cooperative Securities Regulator ruling on two questions before the Court. I offer up my insights on what this means for the industry and what lies ahead.
To read my insights, Click here.
Observations from the SIFMA Annual Meeting (IIAC Blog)
I attended the SIFMA Annual Meeting in Washington in early October. The one-day conference included several policy sessions on the market and economic outlook, a perspective on the evolution of wealth services, and the political landscape in the U.S. with mid-term elections in the offing.
Two interesting break-out sessions focused on changes to business models in fixed income trading and wealth management. Insights shared by experts are important not just to understand how the U.S. industry is evolving, but to foreshadow the direction Canadian dealers might take given changes in investor behavior in our markets. My summary comments are available here.
Maintaining Earnings Momentum in the Wealth Management Business (IIAC Blog)
There is an undercurrent of change happening in the wealth management business, driven by stiff competition, fee compression, regulatory obligations, evolving investor needs and preferences, and applications of new technologies. Industry operating costs have escalated and margins have been squeezed. Further, there is no end in sight to rising costs.
How do wealth-focused investment dealers position themselves for a new phase of growth and profitability?
Read my latest Letter from the President.
The IIAC Proudly Presents the Nominees for the 2018 IIAC Top Under 40 Award (IIAC Blog)
The IIAC Top Under 40 Award recognizes and celebrates the new generation of highly motivated and talented young professionals whose drive, dedication, personal and professional qualities and accomplishments have brought distinction to the investment/financial industry.
Please join me in congratulating the 2018 nominees. They are featured in full-page ads in the October editions of Investment Executive and Finance et Investissement.
The nominees will be formally recognized at the IIAC Top Under 40 Award Luncheon on October 25, 2018 in Toronto, where the 2018 Award recipient will be announced.
Thank you to our sponsors: Canadian Securities Institute, Investment Executive and Finance et Investissement.
Follow on Twitter: @IIACACCVM #IIACTopUnder40Award
The Future of the Independent Dealer (IIAC Blog)
In my latest President’s Letter, I describe an optimistic future for the mid-sized and small independent dealers in the investment industry, despite uncertain and competitive market conditions. This is an encouraging outcome as the small dealers are vital to the depth and diversity of our capital markets. The independent dealers will build on the tight management of costs, adept application of technology, and business targeted to strategic niche markets. The independent retail firms will benefit from continued robust wealth markets, while institutional firms will have a tougher journey, but find success diversifying investment banking across the non-resource corporate sector, and deepening their penetration of public venture and private markets.
Click here to read my Letter.
Op-Ed – Wealth management: It’s time to rethink practice and regulation (IIAC Blog)
In an Op-Ed published in The Globe and Mail, Michael Williams, Chief Risk Officer at Richardson GMP Limited, and I argue that fixation on themes such as market movements, regulatory reform and technology has obscured, perhaps, the most important factor to build and sustain wealth—an experienced advisor—and, at the core of the client-advisor relationship, a strategic financial plan. While cost-effective regulation is key to guiding best interest and client-first conduct, regulators should also take steps to provide greater scope and flexibility to assist advisors meet the financial objectives of their clients.
You can read more here.
Proposed client-focused reforms: How they could impact independent firms’ operations? (IIAC Blog)
I have written a column for Investment Executive that discusses how independent firms may restructure or retool their wealth-management operations to mitigate the negative impacts of the CSA’s proposed client-focused reforms.
You can read the column here.
Dealer Member-Portfolio Manager Service Arrangements Template (IIAC Blog)
The IIAC is pleased to make available to member firms a standardized template agreement to be used voluntarily by executing dealers and portfolio managers when entering into service arrangements. Developed by the IIAC and the Portfolio Management Association of Canada (PMAC), the template agreement sets out the respective obligations of the Portfolio Manager and the IIROC Dealer in providing applicable services to their mutual clients, as well as their respective obligations to each other.
The template agreement benefits member firms by streamlining and harmonizing the various agreements in use by IIROC Dealers and Portfolio Managers to create an industry standard. Its Schedules provide parties with the necessary flexibility to account for any unique and specific elements in their commercial relationship.
IIAC members can access the template agreement by clicking here.