Like us on our university semester abroad, one of the nation’s top asset managers is broadening its horizons.
What happened: Fidelity Canada, the nation’s second-largest asset manager, is getting into the financial advisory game. The firm is launching Fidelity Wealth, a wealth management dealer, after approval from a regulatory body to sell securities and mutual funds products.
- Fidelity said it aims to recruit advisors nearing retirement who want to transition their books to an independent firm. Canada has around 100,000 working advisors.
Why it matters: The move will add some competition to the financial advice industry in Canada, which is dominated by the Big Six Banks, who (as you’d expect) have an interest in pushing their proprietary products.
- Fidelity Wealth managing director Eugene Boakye cited “objectivity and independence” when asked by The Peak why the business will offer other companies' products alongside its own.
Big picture: Per an Ernst and Young study from last year, 45% of Canadians with financial advisors are looking to either add or switch providers — a startling 24% increase from 2021 — as economic uncertainty leaves many folks unsatisfied with the advice they’re getting.—QH