As the financial advice industry evolves towards the adoption of strategic, goal-oriented advice models, employers and investors are expecting more of financial advisors, according to a Canadian Securities Institute (CSI) research.
The study, that polled a cross-section of financial services professionals and opinion leaders, found that in an environment of lower risk tolerance, the rising professional bar creates a strong momentum for change. Therefore, advisors who are among the first to adopt professional best practices will gain a strategic advantage.
Read: Canadian clients dissatisfied: survey
“We asked [many industry participants] what the future may look like for the industry and how we can best support advisor and investor needs,” says Simon Parmar, managing director, Canadian Securities Institute (CSI). “One common thread in these discussions was a growing recognition of rising investor and industry expectations towards advisors, spanning everything from their quality of service to their expertise, soft skills and credentials.”
Not only are advisors expected to know more, but they also need to work harder to prove their credibility with clients and employers who face a heightened compliance environment, he adds.
Read: Investors want plain-talking advisors
In the new advice landscape, there is a greater premium on professional credentials.
“[Clients] want their advisors to understand their financial big picture,” says Marc Flynn, senior director, regulatory relations and credentialing, Canadian Securities Institute (CSI). “In this environment, recognized financial designations – above and beyond basic licensing requirements – are no longer a ‘nice-to-have’ for advisors who want to stay relevant to the needs of their clients. They are a ‘must have’.”