12 September 2018 11:30
Although the sales forces captives have exceeded the independent companies in terms of revenue during the crisis postfinancière, they have surprised everyone over the past five years saw their net income almost double, said the president of thecanadian Association of securities trading (IIAC), Ian Russell.
In a letter, the president of the IIAC expects that the wealth of the industry will remain strong, caused by the retirement of babyboumeurs, which will increase the demand for products and wealth management services, and the arrival of the milléniaux who seek to grow their income and their savings.
Private Capital and derivatives
While some companies may focus on high net worth clients, Mr Russell said that these are the independent firms that were able to access alternative investments, such as private equity and derivatives. They have also been able to implement products and technology tools for all segments of customers at a reasonable cost in order to be competitive on the market, he wrote.
Mr. Russell said that he was optimistic about the success of independent advisors in what he describes as ” the most difficult markets ever faced by the industry. “
“The effect of those undertakings on the market, and the unique combination of products and services that they offer will bring significant benefits to investors and private issuers, particularly small businesses, and will contribute greatly to the health of the economy and financial markets. “
Success and perseverance
The reality, said Mr. Russell, it is the success and the perseverance of the retail companies independent in the face of demographic changes, the expansion of products and services and increasing the costs of compliance.
Independent companies have three positive factors to their advantage : a strategic vision focused on niche activities ; retail markets strong in order to increase the revenues of retail companies, and improve the distribution to institutional traders ; and access to an emerging technology to increase the retail services and reducing operating costs, ” wrote Mr. Russell.
The independent retailers have emerged as efficient competitors on the retail markets, even against the integrated companies a lot more important, with a range of products and a large trade exception.
The investors of the generation of milléniaux
“The challenge for the self-employed will be to adapt their business focus to the growing influence of the investor base of the milléniaux, to deploy technological applications that are adequate to meet the demand of customers and to increase operational efficiency and improve the arrangements for compensation. “
Other companies may not be so lucky. Mr. Russell predicted that revenues from investment banking are more likely to reduce their current levels, primarily due to financing activities in the resources sector. The sectors of small and mid-cap stocks, he says, will be more sensitive to business conditions weaker and less likely to develop their activities than large companies.