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Identifying female wealth advisors who stand out in an industry that is still predominantly male is no small feat.
As such, SHOOK Research has prioritized determining advisor quality through in-person, virtual and telephone interviews as part of its ranking of Canada’s Top Wealth Advisors series published by The Globe and Mail. I’m here. This includes the first Canadian Top Female Wealth Advisor Rankings.
Unlike other advisor rankings, advisors are not ranked by how much money they make. Figures like production (revenue) and assets under management (AUM) don’t tell the whole story, especially when much of the data is self-reported.
The research team creates a ranking of role models – advisors who deliver best practices and lead the way in delivering quality experiences for their clients. Focusing on both qualitative and quantitative factors is essential.
How advisors are ranked
SHOOK has developed a proprietary algorithm of qualitative data to assess best practices. Some quantitative measures are also included in the algorithm. However, due to the variety of client objectives and the lack of audited data, portfolio performance is not the norm.
Researchers scour the financial services industry for nominations and accept advisors who meet predetermined minimum standards and an acceptable compliance record.
Advisors in Canada can complete the survey for consideration in future rankings. Neither The Globe and Mail nor his SHOOK take commissions in exchange for placing advisors on the rankings.
Canada’s Top Women Wealth Advisors, Canada’s Top Wealth Advisors, Canada’s Top Wealth Advisors: To be considered for inclusion in the Best-in-Province rankings, Advisors must meet the following basic requirements:
- At least 7 years as an advisor.
- At least one year at the current company, with exceptions such as acquisitions.
- Completion of an online survey.
- Transactions with individuals are evaluated.
- Acceptable compliance record.
Below are details of the specific criteria that are considered part of the ranking process.
- AUM and quality of those assets. Growth rate is taken into account.
- Client-related data such as retention.
- Telephone, virtual and face-to-face meetings with advisors (telephone interviews are required. Exceptions will be considered where interviews are conducted after rankings are published if face-to-face meetings cannot be achieved).
- Compliance records and submissions to regulatory authorities. Some “problems” may be overlooked, such as company or product failures beyond the advisor’s due diligence. The older, the less visible, if not the result. There are many gray areas, so the team listens to companies willing to stand behind their advisors with written help from their leaders.
- Client “impact” is measured. It’s a unique metric that measures the difference advisors make in their clients’ lives.
- Advisors that provide a complete client experience including service model, investment process, fee structure and range of services. This includes extensive use of the company’s platform and resources such as debt.
- Credentials (years of service can be used as a proxy).
- Using teams and team dynamics.
- Contribution to local communities.
- Discussions with management, colleagues, and competing colleagues.
Compliance and regulatory issues
To reduce the weighting of violations, the following conditions are considered:
- Rejected or closed without enforcement action.
- Complaints arose from products, services, or advice initiated by a previous Advisor, another member, or a former member of the team.
- Elapsed time since complaint.
- Product defect complaints are not related to investment advice such as limited partnerships or adjusted interest securities.
- Complaints that prove to be fruitless.
- Action is taken due to an enterprise administrative error or failure.
Once an Advisor’s compliance rating falls into a maintainable category, the following conditions must be met:
- Advisor evaluation must be one of SHOOK’s highest qualitative indicators, including face-to-face interviews.
- You must submit a letter of recommendation from your company.
This algorithm is designed to provide an unbiased comparison of the business practices of a large number of advisors based on quantitative and qualitative factors.
Data is weighted to prioritize dynamics such as recommended “best practices”, business models, and recent business activity.
Each variable is graded and represents a specific value for each measured component. These data are fed into an algorithm that measures thousands of advisors against each other.
SHOOK is completely independent and objective and does not receive compensation from advisors, companies, media or other sources in exchange for ranking placement. The company is funded through conferences, publications and research partners.
Every investor has unique needs, so you should carefully select the appropriate advisor for your situation and perform your own due diligence.
Rankings are based on SHOOK’s opinion and are not indicative of future performance or representative of any particular client’s experience.
More details on the methodology and full details can be found here.
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