Ongoing market pressures and an evolving industry are creating challenges for independent advisors. New regulations and technologies, fee compression and increased client expectations are just some of the key trends impacting advisors and their practices.
That’s why working with a strong managing agency (MGA) partner can help advisors streamline their operations. Heidi MacDonald, executive vice president of distribution and operations at Financial Horizons, details how an MGA can help advisors succeed.
Q: What industry trends are impacting advisors and their practices?
Heidi McDonald: Volatile markets are impacting client investment strategies, which is impacting assets under management (AUM) and subsequent advisor trailer fees. High interest rates mean clients are allocating available cash to debt service/reduction strategies and placing available funds in alternative or low-fee savings vehicles or solutions such as high-yield savings accounts and GICs. In the wealth space, particularly in segregated funds, advisors may experience significant revenue impacts resulting from the DSC ban and the move to fee-free funds, including the acquisition of advisor-refundable funds. This is in addition to the impact of additional deposit options (ADOs) on first-year commission (FYC) and recurring insurance sales revenue.
“We help advisors accelerate their growth, no matter where they are in their business, by providing the right tools, technology, resources and expertise when they need them.”
Meanwhile, advisors are under pressure to digitize their practices. COVID has helped the industry move forward with updated technologies. Now, an advisor’s business must be easily accessible from anywhere—at any time. And clients expect it to be a one-stop solution.
That’s why the value of advice goes far beyond knowing your product and selling today. It’s about understanding the industry and being prepared for where things are headed. That’s where we work with our advisors to help them support their clients on that journey.
Q: How does working with the right MGA partner help advisors continue to grow and succeed?
HM: Success looks different for everyone. At Financial Horizons, our commitment is to help advisors accelerate their vision for success. We differentiate ourselves as industry leaders in this space through distinct programs, access to industry-leading experts, best-in-class education, and proven approaches that work.
We can say this with confidence because we listen carefully to our advisors and are constantly looking for new solutions. This allows us to improve the tools and services that contribute to their success.
We also have local teams across Canada. So whether an advisor needs leadership, sales, operations, compliance or back office support, our experts are available to understand the local perspective, unique needs and, most importantly, the advisor’s definition of success and the path to achieving it.
Q: How do you represent advisors to regulators?
HM: We have a proactive team of compliance experts who work with advisors to help them protect their business and provide best practices to help address various compliance or regulatory challenges.
Not only that, but we are on various industry committees, also ensuring that we are at the table when regulators are shaping policy. We support advisors, we are on industry boards that represent MGAs and independent advisors, and we work with the Canadian Life and Health Insurance Association (CLHIA). In this way, we represent all of our advisors – their needs and the needs of their clients – and the industry.
Regulators may not understand the day in the life of an advisor and what their clients expect. We provide education and information to regulators on the impact of some of the policy decisions they want to implement.
Q: What other support do you provide to advisors?
HM: We help advisors accelerate their growth, no matter where they are in their business, by providing the right tools, technology, resources and expertise when they need it. We listen to our advisors, track industry trends, and then act to create new programs and solutions that keep their businesses ahead of the pack.
For advisors working in advanced markets, our comprehensive support includes a proactive operations team and expert advice from insurance and investment strategists who can act as an extension of the advisor’s team to help identify new opportunities and deliver better solutions to their clients. We are also continually innovating the advisor experience. Our innovative Accelerator programs are a fully immersive experience designed to help advisors gain clarity on what success means to them, setting them on a path to the business, clients and life they want.
These are just some of the ways Financial Horizons helps advisors accelerate their success today and increase their effectiveness tomorrow.
Ongoing market pressures and an evolving industry are creating challenges for independent advisors. New regulations and technologies, fee compression and increased client expectations are just some of the key trends impacting advisors and their practices.
That’s why working with a strong managing agency (MGA) partner can help advisors streamline their operations. Heidi MacDonald, executive vice president of distribution and operations at Financial Horizons, details how an MGA can help advisors succeed.
