Great Expectations – The Brokerage Report Card For 2021

The Annual May Report Card is out again with upticks and downticks (and one serious collapse) but, overall, quite positive as we see A.U.M. at levels one would not thought possible a decade+ ago. Along these lines, but keeping focus on specific and relevant categories, I thought we would take a look at the C.H.G. chart of 2016 and observe the changes of the firms with category ratings of less than 8.0 five years ago.

Take a Look!

Probably the first thing that jumps out at you is the five year downward swing of BMO/N.B. and how they “bested” the usual low ratings of TD Wealth whose upward swing is significant. Couple of other corporate comments would include Canaccord Genuity and IA Private Wealth:

Canaccord – The ratings improvements in all categories since 2016 is impressive and one has to give a nod to Stuart Raftus for turning that ship around. This is a firm to keep an eye on as it continues to gain in strength and reputation in the Independent line-up.

 

I.A. – Obviously this firms’ 2021 performance was nothing to write home about, but it did show a significant amount in green upticks for categories it scored with an under 8.0 ratings. Under the guidance of its new president Stephen Bourbonnais the depth of the firm should expand significantly. The firm’s increased focus on products, services and acquisition/retention of brokers will tell the tale.

And here are come comments on specific categories which I basically lifted from my Great Expectations Article of 2016—–still relevant?

• Payout – production and asset bars are being lifted dramatically and the down elevator will be chock-a-block full of $500k producers in the very near future. At 20% p/o you either take a package, join Little Johnnie down the hall or head for the exit.

• Branch Mgm’t – soon will be approaching a “thing of the past” status with more firms opting for a hub and spoke system whereby the manager, compliance manager and administrator are housed in one location to serve several branch locations. A communication booster for sure, eh?

• Succession/Retirement Planning – outside of life under a Principal/Agent model (ie. Manulife and Ray Jay) the firm has total control in this area. They’ve added benefits to those considering retirement so as to avoid any movement to the classic double-dip option. After all, the assets are theirs, Right?

Lastly, a quick observation on Age and Succession Planning:

• Naturally, and with the lack of trainee programmes the age factor of active brokers keeps moving up. The current average is 50+ which means there are a bunch in their late 50’s and into their 60’s. All of that is swell and some will leave only when they are bagged and carried out of the office. But, the real problem is the lack of succession planning for a very large portion of the broker population. This is one area that clearly demands that brokers and their firms work in tandem in order to prevent a whole slew of problems that will arise when the broker-in-the-sky comes calling and there is no plan in place. Again, I would look at the increased ratings and comments on flexibility at both Canaccord Genuity and IA Private Wealth.

As always the Curry-Henry Group is here to help and guide you through the trials and tribulations of the ever-changing marketplace and specifically with any career changes you are contemplating during and post Covid 19 and the inevitable decisions that will be made in the near future.

Speaking of changes, take a look at my latest article (non-industry related) entitled “The Slow Death of the American Empire” which includes a lengthy commentary on Trumpism.

Brian L. Curry