What will the Canadian investment industry look like a decade from now? A lot different, according to two articles in this issue of The Analyst. Both are featured as part of our ongoing focus on the Future of Finance, in which we share Canadian perspectives on CFA Institute’s initiative of the same name. The goal of their Future of Finance effort is to “shape a trustworthy, forward-thinking financial industry that better serves society.” In that context, then, both articles featured here tackle the topic in different ways.

Dan Geraci continues the discussion on the future of Canada’s small investment dealers that was started by Ian Russell and Nick Thadaney earlier this year. With small dealers under pressure in a tough business environment, Geraci proposes a new model that could see Canadian independents thriving. The key to success: being more open to banding together and creating strategic alliances that play to everyone’s strengths, including distribution and manufacturing, and that put investment advisors at the centre, not as “mercenary asset gatherers.” Geraci believes that if small dealers choose a path like this, the future will definitely look a lot brighter for them – and for investors.

Salman Amin, CFA, takes the evolution of investment management even further by discussing two major developments facing investment advisors: the regulatory push to see advisors as fiduciaries and the introduction of online advisor platforms and tools that give individuals instant advice at a much lower cost. Salman argues that such disruptive developments could have a monumental effect on advisors and the investors they serve.

Bottom line: Change is underway, and the Canadian investment industry could look a lot different 10 years from now.

We hope you enjoy this issue of The Analyst. As always, we welcome your ideas, feedback, and contributions.

IN MEMORY OF
G. RAYMOND CHANG, O.C., O.J., CFA
Director and Former Chairman and CEO, CI Financial. Born on Nov. 23 1948 in Kingston, Jamaica. Bought a small investment fund company ($5 million AUM) in 1983, now known as CI Financial Inc. ($100 billion AUM). Recipient of the Order of Canada (2014) and the Order of Jamaica (2011). Business Titan. Chancellor of Ryerson University from 2006 to 2012. Philanthropist.

“At the end of the day, a good life is not measured by the amount of wealth you have accumulated. It is evaluated according to the contributions you have made to society — of yourself first and of your resources next.” — G. Raymond Chang, O.C.