Jon nguyen

Wealthsimple for Advisors 101

Jon Nguyen · February 2 2018

 

Do what you do best

Quick poll for all of the Advisors out there : What do you spend 70% of your time doing day-to-day? Here are the usual answers: paperwork, address updates, depositing cheques, administrative servicing, (more paperwork). Here's a different question: what would you like to be spending 70% of your time doing?

When it comes to the Advice space, there's one very cruel truth. Advisors want to spend most of their time adding value to clients through planning, life insurance, cash flow management, giving advice - but often cannot due to the sheer amount of manual work required to keep the ship moving.

That’s why it was important for us to launch Wealthsimple for Advisors. Let us take care of the mundane tasks - so you can take care of your clients.

How do we do it?

What does Wealthsimple for Advisors mean? It means that financial advisors of all stripes can work with their clients to help manage their Wealthsimple accounts. Advisors get to use our powerful tools—we’ll take care of all the investment management, from annual KYC updates, portfolio suitabilities to every other time-intensive task you can think of. We offer their clients an award-winning experience that includes fully paperless Web or mobile investing experience and our low fees. Meanwhile, their clients get someone to help them with all the complicated financial stuff they may not want to deal with, someone to give holistic financial-planning advice beyond Wealthsimple accounts.

Of course, as with any wealth advisor, it will cost a little more to have someone manage your money—though a lot less than most financial institutions. Wealthsimple gets the same fee no matter what: 0.35% of invested assets. Then the individual advisor decides on the fee he or she will add on top of that, from 0% of assets invested to 1.15%. Which means the client will pay a total of .35% to 1.5% of Wealthsimple assets invested through an advisor.

But what about money management? Don't Robo-Advisors only use passive, broad-based ETFs? My clients don't want that, they need to be protected when markets go awry! That's the beauty of the platform. Not exactly. Yes, we have the low-cost passive option, but we've launched our Sub-Advisory platform where clients can get access to Active Management for an additional cost.

So you're saying a client can get access to proven Active Managers, using the paperless Wealthsimple onboarding while still getting me as the Advisor? Yes, that's exactly what we're saying.

What's next?

Here's how it all works: First an advisor joins the Wealthsimple network at wealthsimple.com/advisors. We do a background check to make sure we’re working with a professional advisor with a good reputation. We're looking for partners who are not just looking for a small account solution, but a way to to modernize their business for any sized clients.

Once approved, the Advisor can simply add clients’ email addresses to invite them to open a Wealthsimple account. Clients receive a personal email from the advisor inviting them to join Wealthsimple. Then they use our award-winning website to create a Wealthsimple account linked to the advisor. The advisor can always track the client’s accounts through his or her dashboard, and the client always has the advisor’s contact information at his fingertips via his account. That’s it.

What kind of advisors does this make sense for? Everyone! We designed the program so it will benefit financial planners, portfolio managers, investment advisors.

Hundreds of advisors across Canada have already invested hundreds millions of dollars in the Wealthsimple for Advisors platform. So what are you waiting for? Apply today!

 

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