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Wealth Management Firms in Canada at Increased Risk of Losing Younger Affluent Clientele as Fee Transparency Regulation Looms, J.D. Power FindsRisk of client attrition at wealth management firms in Canada is on the rise and could spike with the upcoming Total Cost Reporting (TCR) regulation, according to the J.D. Power 2024 Canada Full-Service Investor Satisfaction Study,SM released today. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240502880418/en/ J.D. Power 2024 Canada Full-Service Investor Satisfaction Study (Graphic: Business Wire) The regulation is intended to make the cost of owning investment products more transparent to investors in Canada. While few Boomers say they plan to switch wealth management providers, the same is not true for younger clients. A notable 13% of Gen X1 clients and 22% of Millennial clients say they are considering switching wealth management firms in the next year. They cite high costs as their top reason, which makes the TCR regulation all the more important. "Younger clients are already asking questions about the value of their advised relationships," said Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power. "The forthcoming regulation is only going to magnify the focus on fees and other costs for the client base. Firms must prepare to communicate their value, not just in terms of yields and returns, but also in terms of the broader benefits an advisor offers. Being proficient in the technical know-how of wealth management is a base requirement, not a point of differentiation. To create client relationships that enable healthy organic growth over time requires a more meaningful connection that many say is missing." Following are some key findings of the 2024 study:
National Bank Financial ranks highest in overall investor satisfaction with a score of 716. Raymond James (714) ranks second and Edward Jones (697) ranks third. The Canada Full-Service Investor Satisfaction Study, now in its 19th year, measures overall investor satisfaction with full-service investment firms in seven dimensions (in order of importance): trust; people; products and services; value for fees; ability to manage wealth how and when I want; problem resolution; and digital channels. The 2024 study is based on responses from 4,931 investors who work directly with a dedicated financial advisor or team of advisors. The study was fielded from October 2023 through January 2024. For more information about the Canada Full-Service Investor Satisfaction Study, visit https://www.jdpower.com/business/jd-power-canada-full-service-investor-satisfaction-study-award-information. See the online press release at http://www.jdpower.com/pr-id/2024035. About J.D. Power J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behaviour, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies. J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info
1 J.D. Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2006). Millennials (1982-1994) are a subset of Gen Y.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502880418/en/ |