Shaping the future of financial advising, insights from the Advocis Symposium

This article was produced in partnership with Advocis

The Advocis Symposium recently drew record attendance, signalling a strong interest in returning to in-person conferences for peer learning. With 300 participants, the event was a day filled with insights and energy. The emcee, Kelly Gustafson, infused the event with vibrancy, spirit, and enthusiasm. Gustafson emphasized the value of engagement and seeking support, especially pertinent in recent years of business challenges. Through her involvement with the Advocis community, she enhanced her education and expanded her network visibility.

Jim Ruta, a veteran in the financial services industry since 1978, brought a lively, refreshing perspective on professionalism in the increasingly complex world of financial advising. His insights at the Advocis conference highlight the importance of evolving with the times while maintaining the core values of client service.

Ruta addressed the blurred lines in the financial services industry, where the acceleration of product and process complexity has often led to confusion among advisors and clients. This confusion, he noted, detracts from the quality of service and results. However, he offered a beacon of hope: clarity and a renewed sense of professionalism can reverse this trend.

The new professionalism

According to Ruta, the new professionalism revolves around focusing on unique strengths and specializations. High performance, he insists, is a learned skill, attainable by anyone willing to dedicate themselves to the craft. He emphasized that clients seek not just information, but wisdom and context—qualities that a true professional must embody.

Ruta strongly advocated for specialization, warning against the pitfalls of trying to be a “doctor of all ologies.” By focusing on specific areas, advisors can offer more in-depth and valuable services. He highlighted the importance of collaboration over competition, suggesting that working together with others can lead to greater success and benefit clients more significantly.

Ruta's passion for life insurance was evident as he discussed its potential beyond mere risk management. He urged advisors to educate themselves and their clients about the versatile applications of life insurance, from tax planning to building financial independence. This approach, he argued, would democratize expertise and make it more accessible to clients. Engagement with clients is key, according to Ruta. He advised adopting compelling concepts to attract and engage clients, making it easier for them to understand and appreciate the advisor's expertise.

Embracing change: the compliant advisor

The financial advising landscape is undergoing a significant transformation, driven by technological advancements and changing investor expectations. Monica Hovsepian, Financial Services lead at OpenText shed light on how technology, particularly Artificial Intelligence (AI) and online platforms, are reshaping the industry.

A significant focus of Hovsepian’s talk was the role of AI in financial advising. Contrary to the notion that AI depersonalizes, she argued that it could offer highly personalized services by analyzing vast data sets. AI's efficiency in automating routine tasks allows financial advisors to focus on providing more nuanced advisory services. Hovsepian pointed out that with the largest wealth transfer impending, AI's role in risk assessment and market prediction becomes even more crucial.

However, Hovsepian cautioned against the unchecked use of AI. She warned of potential biases in AI algorithms that could lead to discriminatory practices in financial services. The complexity of AI models might also result in a lack of transparency, potentially eroding trust among clients. Moreover, as AI becomes integral to cybersecurity, the risk of sophisticated cyber-attacks increases.

Cybersecurity emerged as a critical theme in Hovsepian's address. She stressed the importance of robust security measures to protect client data and prevent cyber-attacks, emphasizing that advisors must be vigilant against phishing attacks and internal threats. Regular training, strict access control, and data encryption are vital in safeguarding sensitive information.

Grassroots Advocacy: The power of collective effort

Another vital aspect of the Advocis Symposium was the discussion on grassroots advocacy. Advocis, renowned for its expansive network of members, not only represents financial advisors but also champions them as community leaders across Canada. These members play a crucial role in advocacy, leveraging their positions to influence policy and regulatory decisions.

Advocis members are more than just advisors; they are integral to the advocacy process. By actively engaging with policymakers and elected officials in their communities, they help to demonstrate the real-world impact of financial advisory work. This grassroots approach is essential in making a meaningful policy impact, as it brings the voices of those directly affected by regulations to the forefront.

Kris Birchard, Chair, Advocis National Government Relations Committee, emphasized the significance of being part of a member association like Advocis. Individual efforts, while valuable, gain amplified impact when unified under an organization. Advocis leverages its numbers for effective grassroots advocacy, providing a direct link between local communities and elected representatives. This approach ensures that the voices of financial advisors are heard at the policy-making level, shaping the regulatory landscape.

A critical challenge for financial advisors is keeping abreast of regulatory changes. Birchard highlighted the role of Advocis in helping members stay informed and adapt to these changes. The organization works closely with legal and regulatory bodies, ensuring that its members are equipped to understand and navigate the evolving regulatory environment. This support is crucial for advisors to manage the consequential impact on their businesses effectively.

The insights from the speakers at the conference underscore the importance of a united approach in advocacy within the financial advisory sector. Advocis members, through their collective efforts and grassroots strategies, play a pivotal role in driving policy changes. This united front not only benefits the members themselves but also contributes to a more informed and responsive regulatory environment, ultimately benefiting clients across the country.