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 … Continue reading
Tag Archives: industry trends
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.
Earlier this month, I attended the International Capital Market Association’s 50th AGM and Conference. Issuers, investors, intermediaries and market infrastructure providers from the cross-border fixed income markets, together with market experts, regulators and policy makers, discussed the state of the global industry and future developments.
In Europe and elsewhere, financial markets are continuing to evolve rapidly, influenced by regulation, disruptive financial technology, demographic trends and an increasingly important environmental agenda.
The Canadian industry is closely watching developments in Europe in the advent of MiFID II. The general view in Europe is that improved post-trade transparency should help … Continue reading
My latest Letter from the President examines year-end 2017 securities industry statistics, the challenges faced by large and small investment dealers, and the outlook for the mainline businesses and firm groupings.
Overall, the industry turned in a mixed earnings performance last year. Fee-based business powered retail earnings. The self-clearing retail firms recorded the highest earnings in three years, while the institutional boutiques fared the worst. Falling share values contributed to weak investment banking results in the last months of 2017, and dragged down earnings at the integrated dealers, even though corporate advisory fees held up … Continue reading
I appeared on Business In Vancouver Radio to discuss the factors that have contributed to fewer companies going public, a trend occurring in Canada, the U.S., and Europe.
The high costs associated with listing on the exchanges and meeting ongoing reporting issuer responsibilities (i.e. disclosure and corporate governance requirements) are keeping many companies from tapping the public markets. Coupled with this, regulatory changes in the various jurisdictions have made it easier for companies to go private. Also, private equity firms are playing a larger role in the market, providing financing, and in the M&A space, buying out … Continue reading
My September 2017 Letter from the President provides an overview of recent performance in the investment industry, highlighting developing business trends, the challenges faced by large and small investment dealers, and the outlook for the mainline businesses and firm groupings.
Click here to read it.
My latest Letter from the President describes the opportunities and challenges for the retail investment industry. While we estimate about 30 retail boutiques lost money, on a net basis, in each of the last four years, it is important to stress that many small and mid-sized firms have been profitable.
Firms have made herculean efforts to control cost increases through staffing reductions, increased reliance on technology and out-sourcing, and adjustments to advisor compensation grids.
Firms have also focused efforts on improving advisor productivity through training and continuing education programs. They have boosted their competiveness by providing … Continue reading
Following two years of back-to-back earnings gains, overall operating profit for Canada’s investment industry declined 13% year-over-year in 2015. Both revenue and profit improved for the industry as a whole in the first quarter of 2016.
Aggregate numbers do not tell the whole story. A tsunami of change continues to batter Canada’s investment industry.
– Fixed costs escalate relentlessly to meet the technology and systems demands of front and back office.
– Regulatory reforms not necessarily efficient as cost/compliance dimension not scoped out beforehand through cost-benefit analysis.
– Larger firms widen their competitive advantage with more … Continue reading