'UK regulation keeps me awake at night'

The answer is dealing with all these eventualities is part and parcel of delivering great service, according to one discretionary fund manager boss.

That individual is Duncan Stratford, Canaccord Genuity Wealth Management's UK managing director, who says it is vital to maintain a can-do attitude and keep close to clients, regardless of the size of the company.

But challenges come with that territory, as Stratford tells FT Adviser, and some of those challenges involve simply keeping on top of, and preparing for, regulation.

"What keeps me awake at night, professionally speaking? At different stages of my career, I could have given you very different answers.

If you work in the world of investment, the markets will always keep you awake at night.

"As managing director of CGWM in the UK, regulation keeps me up at night 

"The most recent work around consumer duty is a hugely positive step and ultimately provides us with opportunities but it has been a huge undertaking with some big deadlines."

But there have been other worries. Stratford explains: "As an investment director I became very close to clients and making sure they got the right outcomes became a big concern during some challenging periods, such as 2008.

"If you work in the world of investment, the markets will always keep you awake at night. The last couple of years have been testament to that, as we have seen unprecedented volatility.

"The cyclical nature of working in investment - that is part and parcel of what we do."

Of course, inflation has caused a few ruffles in the last few years or two, as has the decisions of the central banks in terms of monetary policy to control it.

But for Stratford, investment professionals are - or should be - well used to these changes, so "having the experience to navigate these difficult times means that our nights are more undisturbed than most".

Close to the clients

That said, being close to the clients does not just mean making sure they get the right investment outcomes; according to Stratford, it also means being prepared to roll up your sleeves and help them with whatever need presents itself. 

That need could be anything from walking a dog to chopping down a tree - the sort of unquantifiable value-add that under consumer duty, companies now have to quantify. 

Stratford says: "I had an elderly client in Hampshire and was due to visit her the day after one of our named storms had hit the southern coast.

"When I turned up, a tree had been blown over, blocking her driveway.

I’m not quite sure how the FCA would get me to measure that in terms of quantifiable outcomes or value.

"So, when I knocked on the door, the first thing she asked was 'How handy are you with a chainsaw?'

"My military background meant I’d used one a few times in the past, so was happy to oblige and she was left with a freed-up driveway and a stack of logs for the winter."

He pauses. "I’m not quite sure how the FCA would get me to measure that in terms of quantifiable outcomes or value.

"But as managing director, I think going that extra mile is important – and I think that attitude is what I aspire for at Canaccord Genuity."

Consumer duty

On the consumer duty question, Stratford says while the 2023 implementation date has come and gone, companies still need to be focusing on consumer duty and the developments around MI.

Having evidence and data to present to the regulator in 2024 is a vital part of engaging in the consumer duty programme of work, he says.

"From the perspective of our existing technology infrastructure, we are in a good place – we have leading-edge core systems for our investment management and financial planning businesses.

"Using these robust systems, we will be able to capture the data and management information we need to monitor good client outcomes and hopefully avoid any foreseeable harm as required by the consumer duty."

We truly are trusted advisers and that’s a cultural thing for us, and the same for intermediary clients as it is for private clients.

Like most companies in the regulated space, Canaccord Genuity's work under consumer duty is ongoing and in some cases is making the DFM look at all its data differently.

But Stratford believes "it’s a regulatory initiative that will ultimately - if firms continue this momentum into 2024 and beyond - benefit our customers and the industry more widely."

So what does good service look like for the company in this post-consumer duty world?

For Stratford, it means several things. He lists these as:

• Providing holistic wealth management while delivering an exceptional level of service.
• It’s about listening to our clients and allowing them time to talk.
• It’s about being approachable, easy to contact and quick to reply.
• It’s about building long term relationships and going the extra mile – giving them a phone call on an important birthday.

He recalls how he recently phoned a client who had turned the grand old age of 100 – "She asked me if I was going to be very long, as she was off to the gym", he adds.

Stratford adds: "It’s about having a relationship that transcends the traditional wealth manager client partnership. I have worked with some clients for so long, they are friends.

"We truly are trusted advisers and that’s a cultural thing for us and the same for intermediary clients as it is for private clients. That’s been key when we have made acquisitions – it’s vital that the companies we acquire are culturally similar.

"First and foremost, they must put the same focus on service and client relationships as we do."

From small beginnings

Canaccord - in various forms - has been around since the 1950s, when it was a small, regional broker/dealer in Canada.

By 2012, it had completed the acquisition of Collins Stewart Hawkpoint, significantly expanding its operations in the UK and the US, adding operations in Europe, and growing its Asia-Pacific presence with operations and listing capabilities in Singapore.

• On July 13, 2012, Canaccord's common shares began trading on the LSE Main Market, having graduated from AIM.
• On October 1 2013, Canaccord Financial Inc was renamed Canaccord Genuity Group Inc, unifying the global franchise under the Canaccord Genuity brand.
• In May last year, the company, through its wealth management business in the UK and Crown Dependencies (CGWM UK), completed its acquisition of Punter Southall Wealth.
• Then, in 2023, Canaccord Genuity agreed to buy Glasgow-based Intelligent Capital, to grow its financial planning business.

But do overseas operators really understand the UK adviser model, and what sort of cultural synergies are needed?

Stratford says: "Our Canadian partners are very supportive in terms of the Avaloq (technology) implementation, M&A and recruitment.

"Building our wealth planning capability is a good example of this - we now have more than 50 planners. The Canadians support us at a strategic level and allow us to get on with the day to day."

For him, the Canadian partners value the UK wealth management space, understand the opportunities here and they fully support the company's ambitions.

Stratford comments: "We celebrated our 10th anniversary in the UK and our journey in that time is indicative of how our Canadian parent group champions the UK wealth management offering.

"Our tried-and-trusted method offering private clients, intermediaries and charities a complete range of fully integrated wealth management services - from discretionary investment management to expert financial planning advice - is a strong operating model they understand."

That said, there are various brands internationally and within the UK and crown dependencies.

This means working with these brands to achieve best outcomes across the group but maintain the individual USPs and identities. 

That's not easy, but Stratford says it works because the centralised support model helps all offices and creates a shared brand value, while allowing different parts of the business to focus on what they do best. 

He explains: "The defining feature of our chief investment office is that it provides each region with the expertise and informed research conducted by the different investment committees.

"The investment managers then work within the parameters of the CIO house view to make informed investment decisions or use the model portfolios that are centrally run.

"All the offices benefit from having this centralised service to support them in achieving the best outcomes for clients. We have a global capability, with a local ‘feel’ and specialist local knowledge."

Future plans

But relying on M&A is only part of the equation: Stratford says he wants to encourage more school and college leavers to consider doing apprenticeships at the company.

For the past few years, Canaccord Genuity has worked with organisations such as 10,000 Black Interns, and is now  working with a charity to help those from socially deprived backgrounds to make it in the world of wealth management, where "who you know" has always been vitally important - and therefore exclusionary.

Stratford says: "We place a huge importance on training and development within the business and prefer to promote internally within the business where we can.

"We have launched a Wealth Planning & Investment Management Academy to provide career opportunities within the business.

"There are many well-documented reasons why diversity matters and delivers better business results – it is why have worked with the 10,000 Black Intern programme for the last few years and it has been incredibly rewarding for us."

Indeed, the company has been able to offer full time positions to a few of the interns, but Stratford says more needs to be done in terms of succession-proofing the financial advisory and wealth management professions.

He says: "We need younger investment managers and wealth planners for succession planning and continuity of relationships.

"Although we can all go on working later in life now, we find many of our senior staff look for a plan to step back slightly before retirement.

"Our younger generation allow us to put in place these plans with staff and give clients time to adjust to any changes."

Like any other, Canaccord Genuity is trying to create a more diverse workforce, but Stratford says the challenge here is that it can only do that if there is diversity in the available talent pool.

"That can only happen if we have the requisite number of women, minority groups and people from different backgrounds coming to work in the City in the first place.

"That will only happen if we, as an industry, work together on grass roots financial services, making children and young people aware of the professions and career opportunities that exist in the City."

This is why he says "we are committed to finding ways to educate young people and raise awareness of these career opportunities and how interesting and rewarding it can be as a career choice – it is only by doing that that we will create true diversity.

"And it takes time – it’s not an overnight fix."