Planners are in an upbeat mood over an easing of restrictions that is making it easier for them to move firms. More and more dealerships formally recognize that the advisor owns the book, and some are even working on electronic platforms that make the transfer of client files easier.

In their push to recruit new advisors, many firms have added clauses to their hiring and recruitment packages giving planners the option to take their books of business with them should they switch dealers. Of the 16 firms that Investment Executive surveyed for this year’s Planners’ Report Card, more than half say clients belong to the advisor. Just a couple of firms insist clients should stay with the dealership if the advisor leaves (although a few firms declined to give contractual details).

Planners at FundEx Investments Inc. rated the ease to leave the firm at 9.4, a dramatic jump from its 5.1 score last year. “Our policy is that advisors should feel free to come and go. We do not create exit barriers,” says David Vowles, president and CEO of the Markham, Ont.-based company.

Vowles says he’d prefer that departing advisors leave happy: “We have no interest in creating bad will for ourselves; we try to help them if they’ve made the decision to go because it comes back to fit. It’s important that we have a good fit with advisors.”

Laurentian Financial Services planners are also among those who think changing jobs is a fairly smooth process, rating the ease with which they could move at 8.3 out of 10.

Stephen Cole, Toronto-based regional vice president, sales at the company, says making moves uncomplicated is an important part of the company’s recruitment tool box.

“We know there are a large number of individuals who see a tremendous future in financial planning. They’re looking for a way to get into the business and, if they have an opportunity to receive training and support, and if they also own their business from Day 1, then we think we have a great corner in the market,” Cole says.

Robert Frances, president and CEO of Montreal-based Peak Financial Group, which includes Peak Investment Services Inc. and Peak Securities Inc., says some advisors worry about the drawbacks of leaving simply because they are told it’s difficult. Once they make the jump, however, many find it wasn’t so hard, depending on how much co-operation they get from the firm they are leaving.

“In terms of our company policy, should a planner want to leave, we don’t hold him or her back. If he doesn’t like us anymore, nobody wants him around. You wouldn’t keep an ex-boyfriend or ex-girlfriend in the house,” he says. Peak planners agree, rating the ease to leave the company in first place at 9.8, although most have no intentions of going anywhere.

Laurie Gillett, manager of communications and membership services at the Mutual Fund Dealers Association of Canada in Toronto, says individual firms may have contracts that prevent planners from taking even one client. For instance, planners from Winnipeg-based Investors Group Inc. graded ease of moving at 3.9, the lowest score of all. The reason for the low score is probably because IG planners are not allowed to take their books of business when they leave.

“We make sure that we contact the client very early and advise them on the move involving the departing consultant and assign [the client] a new consultant to continue the relationship with us,” says Kevin Regan, Investor Group’s executive vice president of financial services. An IG planner from the Prairies cites the difficulty in moving from the company as its worst aspect.

Nevertheless, Investors Group has been working to enhance compensation and improve the support platform, Regan says: “I think it’s getting harder to change because it would be hard to find a better place to manage a business. The principle focus is the best interest of the client.”

Worldsource Financial Management Inc.‘s planners face a more flexible contract, says Anthony Stockley, president and COO of the Markham, Ont.-based firm. “Our firm is based on the independent and entrepreneurial-minded advisor, so our contracts are completely open. If [an advisor] leaves for whatever reason, all of the clients leave with that advisor,” he says. In fact, the firm has a transition team that helps advisors with the move.