加拿大投资报告.pdf

ENABLING THE EVOLUTION OF ADVICE IN CANADAAN IIROC & ACCENTURE STUDY2 | ENABLING THE EVOLUTION OF ADVICE IN CANADAIIROC recognizes the wealth management industry is evolving. We are committed to facilitating innovation and accommodating new advice and service offerings to better serve the needs and wants of Canadians, without compromising investor protection or choice.”Accenture continues to be at the forefront of the transformation taking place in the global wealth management industry. We help our clients deliver scalable and profitable advice experiences that resonate with investors in the digital age. We are delighted to have worked with IIROC on this groundbreaking piece of research and industry consultation and believe the outcome of this study will assist the Canadian wealth industry to innovate at a faster pace and reduce unnecessary cost burden while continuing to provide protection and access for investors of all ages.” Andrew KrieglerPresident and CEO Investment Industry Regulatory Organization of CanadaKendra ThompsonManaging Director Capital Markets, Wealth Management Lead, North America AccentureThe wealth management industry in Canada is undergoing a period of important transformation. Inter-generational wealth transfers, changing investor demographics, arrival of new players and the availability of new digital tools and financial technologies are fundamentally changing the attitudes of Canadian investors towards wealth and investing, how they consume advice and services, and how they prefer to interact with wealth management service providers. Given these changes, firms are exploring new business models to meet client expectations and redefining the scope of advice and services they provide.As Canadas wealth management industry evolves, IIROC also needs to continue to evolve. We (IIROC) are in the midst of a multi-part strategy to accommodate new business models and help facilitate access to appropriate and relevant wealth management advice and services, while continuing to fulfill our investor protection mandate. In some areas, the kinds of changes we (IIROC) need to make to our regulatory framework are clear. In other areas, we have hypotheses as to the direction in which we should go. And in a few areas, the best way forward remains uncertain. It was very clear that we needed to talk directly to the industry to test our assumptions, and to deepen our understanding of the issues related to the industrys evolution.In collaboration with Accenture, we conducted an extensive consultation that included: A series of interviews with IIROC-regulated dealers (“Dealers”) and other industry participants (e.g. non-IIROC members such as North American fintechs). A quantitative Dealer survey. A Dealer compliance roundtable (collectively, the “Consultation”).In each interview, we explored four topics: How investor needs and expectations are changing. How firms are responding to those changes. The challenges firms face when introducing new business models in Canada, including costs related to regulation. Opportunities to foster a more engaged and bilateral relationship between IIROC and Dealers.In the Dealer survey and compliance roundtable, we explored the costs of regulatory compliance and the engagement between IIROC and its Dealers in greater depth. Concerning costs, we wanted to better understand the financial burden (direct and indirect) of regulation on firms and 3 | ENABLING THE EVOLUTION OF ADVICE IN CANADAFOREWORDEnabling the evolution of advice in Canadawhere the burden could be reduced to improve the investor experience and allow services to be more accessible to Canadians, including those that are historically under-served, without compromising investor protection.IIROC and Accenture express our sincere thanks to the industry executives and other stakeholders who participated in the Consultation. We have worked to appropriately capture, understand and assess the many comments, ideas, reflections and anecdotes that arose. We would also like to extend a special thanks to all the administrative teams at the firms we met with for their help in organizing the interviews. This report “Enabling the Evolution of Advice in Canada” includes the views of a significant portion of firms that IIROC regulates, and summarizes the key themes from our Consultation. It explores the drivers of transformation in the wealth management industry, and is designed to stimulate discussion among the industry, other regulators and policy makers, as well as investors, so that we can work together to effectively and appropriately respond to the evolving wealth management landscape. Continued collaboration with the Canadian Securities Administrators (CSA) and other regulators is critical to ensuring that regulation continues to evolve while ensuring that the regulatory framework remains flexible, efficient and protects investors.We are also committed to engaging other stakeholders, particularly investors, in these discussions. We will continue to solicit direct feedback from retail investors through our cross-country panel to stay current with the changing needs and preferences of Canadians who seek to consume financial services.We know that there is significant interest in next steps. This report does not constitute proposed IIROC rule amendments or guidance but rather is designed to help advance the discussion of how regulation can evolve to better support investors across Canada. Among our next steps will be engagement with retail investors, the industry and our regulatory partners. We will also clarify misunderstandings and misinterpretations we encountered during the Consultation, and work collaboratively to update our rules and guidance where appropriate, including flexibility in application without compromising investor protection.4 | ENABLING THE EVOLUTION OF ADVICE IN CANADAPART ONEKEY THEMESIN THIS SECTION, WE DISCUSS THE KEY DRIVERS OF TRANSFORMATION ACROSS THE WEALTH MANAGEMENT INDUSTRY AND KEY THEMES WE HEARD DURING OUR CONSULTATION.5 | ENABLING THE EVOLUTION OF ADVICE IN CANADAAt its core, the wealth management industry is about client relationships. Social and cultural movements correcting the gender power imbalance, combined with changing Canadian demographics, have led to the emergence of two new and powerful investor segmentswomen and millennialsboth seeking a different style of relationship with their wealth management firm.Rise of women and millennialsApproximately CAD$1 trillion in personal wealth will be transferred from one generation to the next in Canada between 2016 and 2026 (Source: Investor Economics Household Balance Sheet Report Canada 2017) resulting in a significant shift in investor demographics, in favour of women and millennials. In Canada, it is estimated that by 2026, women investors will directly control approximately half of total personal wealth (Source: Investor Economics Household Balance Sheet Report Canada 2017), as the number of women who are single, divorced or widowed continues to grow and Baby Boomer women continue to outlive their spouses. Changing social attitudes towards marriage and careers have further empowered women financially, with many Canadian women marrying later, earning higher incomes and maintaining financial independence within marriage and domestic partnerships. Women bring different investment and financial planning objectives and advisory demands compared to their male counterparts, which traditionally have not been adequately met, resulting in around 70% of women leaving their advisor within one year of the death of a spouse (Source: The Journal of Financial Service Professionals).6 | ENABLING THE EVOLUTION OF ADVICE IN CANADAInvestors are changingChanging social attitudes towards marriage and careers have further empowered women financially, with many Canadian women marrying later, earning higher incomes and maintaining financial independence within marriage and domestic partnerships.Millennials, born between 1982 and 1995, have overtaken Baby Boomers as the largest living generation in Canada, (Source: Nielsen Millennials By The Numbers) bringing with them an increased comfort with digital offerings and increased demand for transparency and control over the wealth process. Millennials continue to challenge historical service models demonstrating zero tolerance for friction in a relationship, instead demanding rich, on-demand, personalized experiences. The new service models favoured by millennials are proving equally popular with Generation X and Baby Boomer generations. Different attitudes to careers and wealth have led to a focus on shorter investment time horizons, and greater value on flexibility, cash flow and the client experience.7 | ENABLING THE EVOLUTION OF ADVICE IN CANADAWomen represent a growing segment of investorsSource: Investor Economics Household Balance Sheet Report Canada 2017 Source: The Journal of Financial Service ProfessionalsIn Canada, it is estimated that by 2026, women investors will directly control approximately half of total personal wealth.70% of women leave their advisor within one year of the death of a spouse.Changing expectationsBeyond demographics, investor expectations across all segments are changing, and increasing. They have specific views on money and investing, how they want to consume advice and services, and how they prefer to interact with firms views that differ in many ways from those traditionally held by investors. Canadian investors are generally more educated and confident than ever before and have rich digital lives. They dont expect their digital experience to stop when it comes to financial services. As a result, digital capability and tools represent basic expectations of clients and are no longer differentiators for firms. Firms who lag in the digital space may increasingly be viewed as dated and stale.Canadians are looking for holistic, goals-based advice to support their overall financial objectives and life goals. Investors do not view their money from the perspective of individual accounts or products, and it could be argued that they never have. As one interviewee commented, “We have taken a most human and important issue to the well-being of a client (health and wealth) and weve (the industry) dehumanized it to the point where consumers do not even connect with it anymore”.Many of these clients are looking for an approach that not only supports their individual financial objectives and life goals, but one that considers the financial objectives of the entire family, or “household”. In contrast, product-led offerings appear to resonate with fewer and fewer investors.67%want computer-generated recommendations (robo) as a basic componentGen Xers and Baby Boomers: 30%65%want gamification* that will help them learn more about investing, and keep them more engaged with their portfolioGen Xers and Baby Boomers: 39%62%want a platform that incorporates social media and sentiment indices to assist in financial recommendationsGen Xers and Baby Boomers: 30%66%want a self-directed investment portal with advisor accessGen Xers and Baby Boomers: 25%63%want a mobile platform that connects directly to advisorsGen Xers and Baby Boomers: 27%67%want software that enables tracking of transactions, payments and other financial data in real-time to provide better recommendationsGen Xers and Baby Boomers: 30%*The idea of applying game design and game mechanics (i.e. interesting narratives, complex scenarios, use of competition and leaderboards) to engage, educate and inspire new behaviors.8 | ENABLING THE EVOLUTION OF ADVICE IN CANADAWhat millennials want in the digital mix:Source: Millennials & Money Accenture 2017Guidance from advisors regarding key life decisions is increasingly valued by investorsIn a recent Accenture study, investors reported that they benefit the most from advice services regarding retirement and ad hoc advisory support. With other services such as goal planning, estate and advice on specialized products also playing a significant role. (Source: Wealth in the Digital Age Accenture 2017).The wealth management industry is at a turning pointSource: IIROC & Accenture Industry Consultation Review, 20189 | ENABLING THE EVOLUTION OF ADVICE IN CANADAThe industry is experiencing a period of important transition as significant intergenerational wealth transfers result in new investors with differing views on money and the value of advice.Digital tools and hybrid advisory modelsInvestors are more confident and digitally savvy than ever before.Shift toward goal-oriented investingInvestors do not view their money from the perspective of an account and are looking for broader wealth management advice and services.Increased wealth transparency and controlInvestors are demanding more transparency and control in wealth management process.Transparency and seamless transition across service offeringsMany investors are demanding more transparency and control in the wealth management process, and the ability to move seamlessly between different types and levels of services, without having to transfer back and forth across business lines and open new accounts. For example, under the Canadian regulatory regime, investors still need to create and manage separate accounts across different lines of business at the same financial institution in order to access both dedicated full-service and order-execution-only services. In a recent study, Accenture looked at over 30 tools and services that banks/brokerages offered and measured* their importance to clients. Retirement planningAdvice services that investors preferTools that investors value74%73%67%66%57%Adhoc and general adviceEstate planning(income tax & inheritance services)Support when investing in new & specialized productsEducation for long-term goals82%81%71%70%68%Statements & reportingDetailed, aggregated account summaryPortfolio analysis & comparison with other productsAnalysis of mutual fund performancePortfolio risk indicatorsSource: Accenture Wealth in the Digital Age Investor Survey, 201710 | ENABLING THE EVOLUTION OF ADVICE IN CANADA