Canada's wealth management industry is currently going through extensive evaluation and change, introducing many policies and procedures that, if not already, will be implemented over the next year. At the same time, there has been a massive shift away from transactional business, where clients pay commissions for every single trade. Increasingly, the new business model of choice with both clients and advisors is an asset-based fee structure.
With an asset-based business model clients portfolios are managed by world class institutional money managers, such as Conner, Clark and Lunn, Walter Scott and Partners and Capital Group, for an all-inclusive annual fee, paid directly from their account, usually quarterly. A minimum account size of $500,000 is required and can be achieved by combining family and corporate accounts.
This new approach offers several important advantages. It is plan centered, meaning a financial plan is completed that then acts as the center piece for all further discussions. It also removes any perceived conflict of interest or annoyance over commissions. The annual fee would include the financial plan and on-going follow-up meetings, all portfolio set up costs, all future buys and sells, cash flow management, and, where applicable, the annual RRSP fee. In certain situations, the wealth management fee can also be tax deductible when used to pay for the management of non-registered investments. I could also advise you with estate planning and life insurance, as well as referring you to accounting, real estate and personal training experts.
Our clients receive:
- The reputation and resources of Canada's pre-eminent Wealth Management firm, with over 400,000 clients worldwide
- Portfolio management by leading institutional money managers
- On-line access to all accounts
- A fully written financial plan utilizing RBC Dominion Securities Family Snapshot
- Regular meetings to monitor progress towards goals and to make changes as necessary
- Access to Mike anytime 24/7 via e-mail
- Setting up and administering niche accounts such as Locked-in Retirement Accounts, Registered Education Savings Plans and Tax Free Savings Accounts
- Trade Execution
- On-going cash management purchasing short-term GICs, money transfers, currency exchanges
- Assistance in tax reporting duplicate statements to accountants, tracking down tax slips, capital gains loss reporting, sitting in on joint meetings with accountants
- Assistance in estate matters winding up estate accounts, referrals for powers of attorney and wills
- Assessment of insurance needs, if required
- Assistance in business succession or selling
- Access to mortgage and lending expertise at the Royal Bank of Canada
- A host of local legal, accounting and real estate experts are also available by referral