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Investor Communication with Advisors Still Has Room for Improvement

Investor Communication with Advisors Still Has Room for Improvement

February 5, 2024

Communication between a client and financial advisor is an important part of their relationship, writes Peter Watson.

Are you satisfied with the relationship you have with your financial advisor?

Research from Angus Reid highlights the most important characteristics of how your advisor communicates with you. Offering personalized service combined with transparency are key ingredients.

There is room for improvement. Almost 30 per cent of Canadian investors wanted “more personalized advice tailored to my financial goals.”

There can be a tendency for advisors to put too much focus on investments. Investments are an important component however client’s specific goals based on the important things in their life is what is most significant to a client.

That point was highlighted in the survey results. Two thirds of investors said the main reason they would stay with their advisor were if their personal situation and preferences were understood.

Forty-one per cent prefer in person meetings. One result of COVID-19 was investor preferences reduced the importance of in person meetings. There was a sudden shift to video meetings with the pandemic lock down.

A preference for communicating by email, phone calls and video calls was 28, 18 and 10 per cent. That totals 56 per cent of ways clients want to interact with their advisor.

In my opinion client relationship should be based on the client needs and preferences. This can be done by having discussion of how often a client wants to be communicated with and in what form.

Perhaps an annual meeting in person augmented by telephone conversations, emails and video. That depends on the client’s circumstances. If there is a significant change in a client’s personal life or financial situation that might be something a client would prefer to do in person.

Communication is a key ingredient to a successful advisor relationship.

Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com