Thirty-nine per cent of Canadian millionaires are dissatisfied with their existing financial service providers, the second annual survey by ...

Thirty-nine per cent of Canadian millionaires are dissatisfied with their existing financial service providers, the second annual survey by the Taddingstone Consulting Group has revealed. A further 28 per cent trust themselves over their financial advisors for first financial advice.

"One reason people are dissatisfied is that quite a lot of advisors are chained to their desks doing admin, and aren't providing enough client time. Clients want more face-to-face time with their relationship managers, and this means the bank should free up investment managers and private bankers. High net-worth individuals are increasingly taking the initiative, and aren't prepared to pay for less than quality access," Keith Sjogren, leader of wealth management practices at Taddingstone, told Private Client Management.

Of the 410 millionaires surveyed, 23 per cent had changed their primary financial advisor in the past three years but although 40 per cent are dissatisfied, only eight per cent switch each year. "There's a lot of inertia. People are unhappy, but they don't know where to go or how to get quality in the market place. Interestingly, the reasons for changing were: 55 per cent for weak investment performance, 45 per cent for poor advice, and 35 per cent stated lack of contact with their financial advisor. Only one per cent gave cost, or fees, as the primary reason for switching," added Doug Trott, consultant.

Another reason for dissatisfaction in financial service is that millionaires are often smarter than the people they deal with, Sjogren added. "Either advisors turn over quickly or they aren't sufficiently experienced in the financial industry to meet HNWI needs. Banks aren't necessarily putting their best people in front of their best clients," he opined.

The survey found many HNWs generally felt they get better services from online brokers. On the full-service brokerage side, 45 per cent of millionaires are satisfied with their broker, 33 per cent neutral, and 22 per cent dissatisfied. The lack of satisfaction means one out of five HNWs surveyed have not met with their financial advisor in 12 months. HNWs in British Columbia are the least satisfied with their banks, while in Quebec, the millionaires are the most satisfied. Eighty six per cent of respondents hold mutual funds, preferring Templeton overall, but the survey also found a unique product is the least important criteria for financial purchases.

Among the financial industries, HNWs are most satisfied with Scotia Bank and TD Canada Trust for full service banking, RBC Dominion Securities for full service brokerage and Scotia Discount Brokerage for online brokerage. Canada Imperial Bank of Commerce is the banking powerhouse to watch: its recent purchase of Merrill Lynch means it deals with 60 per cent of Canada's millionaires.

The basic report costs C$20,000. A customized version is C$15,000 and would suit an institution that is not interested in specifc areas. In addition to the report, organisations receive a booklet called 'From The Mouths of Millionaires' which is a commentary on the discussions held with 60 millionaires interviewed face-to-face for the report.