Defying the industry’s ‘dog-eat-dog’ reputation, some wealth management firms are embracing a collaborative culture.AFP/Getty Images
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Many advisors see wealth management as a survival-of-the-fittest industry in which you must meet targets for assets under management (AUM) and bring in new clients constantly or you’re shown the door. Yet, a growing number of firms are shirking this cutthroat stereotype.
Rather than stoking competition among advisors in pursuit of more AUM, these firms are fostering more collaborative and team-based environments. They say this approach is attracting advisors from much larger firms.
“The ‘dog-eat-dog’ notion is a bit funny,” says Stacie Fisher, regional vice-president for Ontario at iA Private Wealth Inc. “It’s definitely not our culture. We had a record year for recruiting [in 2023], and I believe that’s because people are seeing they can come here and build their businesses with strong support.”
She says that’s the result of a five-year transformation to make the workplace more appealing to advisors, with less of an emphasis on meeting quotas and more on supporting them to serve their clients to the best of their abilities.
Like iA Private Wealth, many non-bank-owned wealth management firms see their culture as a key differentiator to draw in experienced advisors, particularly from bank-owned brokerages.
“Working for an independent, you’re not having to think about doing what’s best for the shareholders of the firm. I just have to focus on what’s best for the clients,” says Maili Wong, senior wealth advisor and senior portfolio manager with The Wong Group at Wellington-Altus Private Wealth Inc. in Vancouver.
In that firm’s corporate structure, advisors like Ms. Wong are partners as opposed to employees. She says the culture is also markedly different from her previous employers, which for many years included a bank-owned firm.
“Here, we don’t compete for clients,” she says. “In fact, we often cross-refer clients we think would be a good fit for a different partner at the firm.”
Similarly, at Richardson Wealth Ltd., advisors often share investment strategies and operational insights that can help build each other’s business.
One example is an annual summit for all advisors, says Diana Orlic, wealth advisor and portfolio manager with the Orlic Harding Cooke Wealth Management Group at the firm in Burlington, Ont. She points to group discussion panels on growing revenue, which promote collaboration.
It’s not just about sharing ideas and best practices between advisors. Ms. Orlic says Richardson Wealth advisors participate in consultations in which major decisions are made. That includes everything from adopting a new cloud-based wealth management platform to the intentional layout of workplaces.
“The design of our office includes open areas where advisors and team members come together to meet informally,” she says.
Astute firms have realized you can have a philosophy that celebrates advisors’ entrepreneurial spirit while also cultivating teamwork.
“Because they’re entrepreneurs, we foster a ‘build your own business’ approach at iA Private Wealth,” Ms. Fisher says. “Being entrepreneurs, they’ll set higher targets for themselves than we would ever think to put on them.”
Larger wealth management firms can have similar aims. But as massive organizations, they might not be able to respond as quickly to advisors’ needs, Ms. Wong says.
For instance, she says compliance is often more onerous and broadly applied at those institutions, which can leave advisors feeling “hostage to administrative requests that really aren’t driving meaningful risk reduction for clients.”
A one-size-fits-all approach is a hallmark of many larger corporations, which can leave experienced advisors frustrated, says Benoit Poliquin, president and lead portfolio manager at Exponent Investment Management Inc. in Ottawa. “I always say that clients and employees of Exponent are all bank refugees.”
With larger organizations, “corporate think tends to creep in,” he says. Advisors can feel compelled to outperform colleagues to ensure job security.
Having a collaborative culture doesn’t mean healthy competition isn’t alive and well at boutique firms such as Exponent, Mr. Poliquin adds. “Do I look at the other portfolio managers and how they’ve done? Of course. We all do.”
While advisors are independent regarding their investment mandates, they do work collaboratively at Exponent, particularly around decisions over operations and client services. “We must have buy-in if we’re going to make meaningful, dramatic changes,” Mr. Poliquin says.
The bottom line remains important in an industry focused on wealth creation. Still, non-bank-owned wealth management firms such as Exponent, iA Private Wealth and Wellington-Altus have found a sweet spot in the marketplace. That’s helped by less rigid corporate cultures in which veteran advisors are encouraged to mentor younger ones and help each other build their practices.
“The result is our teams are happier, and that leads to our clients getting better service,” Ms. Wong says.
She adds that this environment can also lead to increased referrals from existing clients, boosting growth in the process. “It’s a virtuous circle.”
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