Canadian’s perception of their financial advisor (Jan 2020 vs Nov 2020)

Investment Executive reported on February 23 that the BC Securities Commission will seek feedback from investors as to how they are being treated by their advisor. Credo’s Financial Comfort Zone clearly shows that some Canadians are considering changing advisors (whether they actually do it is another question as financial advice relationships tend to be sticky) and BC residents have a lower propensity to agree with that statement.

(Credo’s Financial Comfort Zone Survey – Fall 2016-Fall 2020 – results from more than 40,000 Canadians)

Now let’s look at how perceptions have changed during the lockdown. This chart looks at changes from Jan 2020 vs Nov 2020.

The first line shows that 10% more Canadians agreed in Nov 2020 than in Jan 2020 with the statement that they are “considering finding a new advisor”.

At the bottom, 6% fewer Canadians agreed with the statement that their “advisor works in my best interest”.

We started the investor research in the fall of 2016 when CRM2 was about to be introduced. We wanted to see if investors would change financial professionals, go it alone, or use a Robo service once they knew how much they were paying.

(Credo’s Financial Comfort Zone Survey – Jan20 vs Nov 2020 – results from 1000 Canadians)