The advisors in the 2008 Account Managers’ Report Card who praise their financial services institution’s support for high net-worth clients, wills and estate planning, and tax planning say top ratings depend on how effectively the bank branches work with their wealth-management partners.
Bank of Montreal and Royal Bank of Canada — both based in Toronto and leaders of the pack in the support services categories — coach their account managers to tap into any of their respective bank divisions to serve their clients.
So, if a client walks into the branch and needs help with wills and estate planning, tax planning or asset management, an account manager can tap into the appropriate sectors of the bank to get the support the client needs — whatever it may be.
For example, Jim Lund, national program director of BMO’s investment solutions network, says BMO advisors are free to engage the bank’s online brokerage, full-service brokerage or private-banking arms: “When an account manager is sitting in front of the client, he or she can access the entire bank to bring solutions to bear on the client’s needs.”
A BMO advisor in Ontario agrees: “Everything we need is there for us.”
Adds another BMO advisor in British Columbia: “Support is just one phone call away.”
And Lund insists that the support process is not about just shuffling the client over to another division of the bank. “An advisor with BMO Harris Private Banking would come in and join the financial planner or personal wealth consultant, and together they will assess what the client needs more comprehensively, and bring in whatever aspect of the private-banking service is required.”
Royal Bank offers similar support services at the branch level, but it also has a team of about 20 specialists in its head office in Toronto — including high-end financial planners, lawyers and accountants — to assist account managers over the telephone on issues concerning tax, retirement and estate planning.
“There are also teams across the country in local markets that provide these services to account managers,” says Michael Walker, vice president and head of branch investments for Royal Bank. “What’s happening is that the needs of our clients have grown more complex over time — and especially in the high net-worth segment. So, having the ability to bring in professionals who have deep expertise and knowledge to partner up with advisors is a definite advantage.”
A Royal Bank advisor in New Brunswick is very satisfied with her bank’s support for high net-worth clients. “Because the support is in-house, they are quick to assist me,” she says.
Another Royal Bank advisor on the opposite side of the country adds that the bank’s support for wills and estate planning is “fabulous — because it’s all in-house.”
Although Vancouver-based Vancouver City Savings Credit Union does not have the big-bank resources to offer such internal referral arrangements to its advisors, the CU is nonetheless making progress in the delivery of its support services.
Vancity has a group of five certified financial planners with accounting backgrounds who are responsible for providing advice to account managers on the subject of tax planning.
“They give answers in a comprehensive faxed sheet-type format,” says Michael Atkinson, director of investment solutions for Vancity. “But they also keep all that information on our Web site so all our advisors can have access to all the answers. We make sure the information is continually updated.”
Still, not all deposit-taking institutions are supporting their advisors to the same degree. The banks that did not do so well in the support services categories — Toronto-based CIBC and Montreal-based National Bank of Canada — are either not providing enough support or are not encouraging stronger partnerships among the retail branches and their other divisions.
For instance, several CIBC account managers across the country say they are allowed to give only general tax advice, without getting too specific.
National Bank, for its part, does have a branch referral system for advi-sors looking to help their clients in tax planning, wills and estate planning, and asset management, but the bank’s advisors say that not enough is being done to help them deal with clients looking for assistance in these areas.
A National Bank advisor in Ontario says this of the bank’s tax planning support: “They give us a booklet — unless I’m missing a lot.”
@page_break@ Another National Bank advi-sor in Ontario adds: “There isn’t enough being done to differentiate between high net-worth clients and regular clients. I can barely see the difference.”
Adds yet another National Bank advisor in Ontario: “The wills and estates support program is in its infancy. There’s little knowledge in that area.”
Margaret Pernice, senior manager of wealth management with National Bank, says management is aware that more needs to be done in the area of support for wills and estate planning, and that one way to improve will be educating and training account managers.
However, nothing specific has been decided yet regarding the improvement of existing education and training initiatives in these areas.
Among other frequent grumbles from National Bank advisors was that access to support for tax planning and wills and estate planning was hampered for account managers in Ontario because of the differences in legislation between Ontario and Quebec.
One Ontario advisor, among several surveyed across Canada for this year’s Account Managers’ Report Card, says: “There are no clear guidelines. There are two legal systems and legal frustrations.” IE