Andrew Auerbach, CFA, CFP
Founder, Delisle Advisory Group

 Andrew has over 30 years of financial services industry experience with a proven track record of building businesses and attracting the best talent. Andrew has led teams of 15,000 people and is known as a leader in the brokerage, private banking, commercial, and retail banking space.

Jean Blacklock, B.Comm, LL.b
Founder, Delisle Advisory Group

Jean is a former lawyer who became a partner leading the estate planning arm of a large law firm, before becoming an executive within the financial services industry at one of Canada’s largest financial institutions. In addition to Jean’s law and finance experience, she is a practicing psychotherapist, founded Sticky Bakery and Prairie Girl Bakery, and has written a number of books on leadership, estate planning, and food.

What opportunities do you anticipate in the Canadian independent advisor-owned wealth management sector?

Private wealth management and investment advisory is a competitive space in Canada, where banks control 75 percent of the CA$1.8 trillion held by clients in full-service brokerage. We expect to see a tremendous transition as there is an upcoming wave of advisor retirements in the industry, leading to new advisors taking over client accounts. In addition to advisor succession, significant wealth transfer from the aging population will increase demand for tailored private wealth management services as children inherit assets from their families. We also expect technology changes, such as artificial intelligence, to add to our strong value proposition. We provide tailored wealth management services, integrating human processes, family engagement, and client purpose into planning and portfolio construction.

What is your view on the implications of artificial intelligence for the private wealth management industry?

We are both proponents of artificial intelligence but believe the technology will struggle to understand human emotion and dynamics, which are critical elements of the private wealth management industry where you are working directly with clients and families. Empathy, personal planning, and relationship building are as important as investment and portfolio management for our clients. We know these soft skills cannot be delivered to our standard with artificial intelligence and that a well-rounded advisor with strong finance and interpersonal skills will lead to higher client satisfaction and investments in line with the client’s purpose. However, an advisor who is only focused on portfolio construction will face significant pressure to demonstrate value as AI becomes a “co-pilot” to the client in assessing the advisor’s true ability to create alpha.

What has been the biggest challenge transitioning to entrepreneurship?

Blacklock: As an employee, even once you reach an organization’s executive and senior levels, you are led and told what to do to achieve success in your role. As an entrepreneur, you must lead yourself, set your own goals, and be resilient in pursuing your vision, as often nobody will see or understand your vision but you.

Auerbach: Before pursuing entrepreneurship, you must be honest with yourself and understand the opportunity cost of pursuing your own business. Oftentimes, people are drawn to the romantic aspects of being an entrepreneur, such as being your own boss or having increased flexibility. Still, you need to understand and prepare for the challenges. In my previous roles, I used to formulate strategy and then lead and empower thousands of people to achieve business goals, but as an entrepreneur, I have to formulate the plan and also execute it by directly working on tasks to achieve the business goals as part of a smaller team and organization.

What is your favourite thing about being an entrepreneur?

Blacklock: I get to structure teams and select the individuals who work within the company to ensure there is a good fit and culture.

Auerbach: Entrepreneurship fits my personality better than corporate roles as I like to control my own destiny, and I enjoy building something that I own.

Has being a CFA charterholder and member of CFA Society Toronto helped you as an entrepreneur?

Auerbach: Obtaining the CFA charter says a lot about the individual, as the program requires commitment and rigour to achieve the designation. There are stringent registration requirements for opening your own financial services firm, and being a CFA charterholder adds to credibility and industry knowledge when working with regulatory authorities, clients, and other stakeholders. I have kept involved with CFA Society Toronto and have served on the board as well.

What do you think the CFA Program and CFA Society Toronto could improve to support entrepreneurship?

Blacklock: Having had a diverse career in law, finance, psychotherapy, baking, and writing, it would be beneficial to provide support to CFA charterholders for life outside of finance, whether that be mid-career changes or retirement. As a former lawyer, the Law Society of Ontario provides “Life After Law” resources to support lawyers with succession planning and retirement. At Delisle Advisory Group, we speak to retiring private wealth managers about integrating their practice with ours, and I think it could be beneficial to have “Life After Finance” support for charterholders to help navigate the succession planning and retirement process, as there can be professional, personal, and emotional challenges when leaving an industry.

Auerbach: The private client focus within the CFA curriculum is critical from an education perspective for new and aspiring CFA charterholders who have an interest in owning their own private wealth management firm. CFA Society Toronto is the world’s largest CFA Society, and it would be beneficial to see CFA Society Toronto use its reach to connect with other Societies, regulatory bodies, and vendors that could be useful for entrepreneurs. Establishing Delisle Advisory Group was a significant lift, and it would have been beneficial if there were resources available, such as support with regulatory bodies or connection to US Registered Investment Advisors to understand how they operate.

What is Delisle Advisory Group?

Delisle Advisory Group is a private wealth management firm that challenges the traditional Canadian wealth management practice through an independent advisor-owned model that focuses on clients’ interests in wealth, planning, and family dynamics. We provide clients tailored wealth management services with active involvement from advisors throughout the planning, portfolio construction, and decision-making process. All advisors at Delisle Advisory Group have an ownership stake in the firm, and the only revenue received by the company comes directly from clients, leading to higher fiduciary standards, lower fees, and more engagement for clients and their family. 

This interview has been edited for length and clarity.