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PROFIT PIONEERS

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					             FRONT People, trends, events and analysis


ENDLOAD      PROFIT PIONEERS
                           By Jeff Hull, senior financial advisor, Berk-
                                                                                                                            Your Business
YOUR PICKS




                                                                                                           Total expenses in 2004
                         shire Securities Inc., as told to Heidi Staseson.
                                                                                                  for Canadian advisors (salaries;
                            Book: Think and Grow Rich, by Napoleon Hill.
                                                                                             office space; marketing; prospecting;
                            It was written in the early 1900s and was a study
                                                                                                        centres of influence; client
                            of business leaders and successful people such
                                                                                                     appreciation; business travel;
             as Henry Ford and Ben Franklin. It talks about their recipes
                                                                                                        continuing education, etc.)
             for success and what caused them to become great leaders.
                  During the First World War, the Chicago Tribune pub-
             lished an editorial on automobile giant Ford, stating                                                                       MEAN
             his ignorance. Offended, Ford brought a libel lawsuit                                                                     $40,582.80
                                                                                  Less than $20,000               46%
             against the paper. When tried in court, the attorneys,
             thinking they were proving their case, put him on the stand
             and bombarded him with questions such as ‘How many                 $20,000 to $39,999                18%
             soldiers did the British send over to the American Rebel-
             lion of 1776?’ and ‘Who was Benedict Arnold?’                      $40,000 to $79,999                12%
                  Tired of the line of ridiculous questioning, Ford leaned
             over, pointed his finger at the lawyer and said, “ . . . Let me        $80,000 or more               10%
             remind you I have a row of electric push buttons on my desk,
                                                                                Q. What category would your total expenses fit into?
             and by pushing the right button I can summon men to my             (n=2007; moe: +/-2.1% 19/20)
                                                                                Source: Annual Dollars & Sense Survey, 2005
             aid who can answer any question I desire concerning the
             business to which I’m devoting most of my efforts. I have
             access to the best engineers, accountants, lawyers, and more
             . . . kindly tell me why I should clutter up my mind with gen-
             eral knowledge . . . when I have people around me who can
             supply any knowledge I require?”
                  Of course, he won the case. This was not an ignorant man;
             this was a wise man. The impact it had on my business was
             significant. I realized I didn’t have to know everything; I
             needed to know how to organize the information for my
             client and then use the wisdom and guidance of the best
             accountants, tax lawyers and other advisors.
                  Today, we don’t have a row of electric buzzers on our
             desks but we do have speed dial on our phones. In a
             moment’s notice we can summon up some of the best
                                                                                                                                                              Cartoon by Sue Dewar




             people in the world to get advice and knowledge from!
             There are probably 100 stories like that in the book that are
             just absolutely fascinating.


             10   ADVISOR’S EDGE   |   NOVEMBER 2005                                                                                         www.advisor.ca
                                                                                                                                                 CALENDAR OF EVENTS
                            PRACTICE MANAGEMENT                                               ■   NOVEMBER 14 to 15, 5th Annual Advanced

                                                                                              Forum on Securities Litigation, The Sutton

     ADVISORS FEEL CE CRUNCH                                                                  Place Hotel, Toronto, www.canadianinstitute.com

                                                                                              ■   NOVEMBER 17, Dialogue with the OSC

         inish what you started, reminds the   satisfy as many requirements across            2005: “Setting the Standard,” Metro Toronto
   F
         IDA in a recent letter to advisors    other self-regulated [areas] as possi-         Convention Centre, South Building, Toronto,

 and member firms regarding the upcom-         ble,” he explains.                             www.osc.gov.on.ca ■ NOVEMBER 17 to 18,

 ing deadline—and “offside” penalties—           The CE crunch is on, says Flye, who          11th Annual Regulatory Compliance for

 for completing continuing education (CE)      observes course participation is up 200%       Financial Institutions, The Sutton Place Hotel,

 requirements. It’s part of the IDA’s man-     compared to last year. But he stresses CE      Toronto, www.canadianinstitute.com ■ JANUARY

 date stipulating that securities industry     shouldn’t merely be about “checking off        23 to 24, 5th National Summit on Income

 members complete a certain number of          boxes to say you’ve completed three hours      Trusts, The Marriott Bloor Yorkville

 CE credit hours every three years.            of this and 12 hours of that.” Rather, the     Hotel, Toronto, www.canadianinstitute.com

    “Everyone’s scrambling,” notes Jay         intent should be, “Am I as an advisor
                                                                                                          To submit an event, e-mail
 Flye, vice-president of sales for CSI         serving my client to the best of my abili-             heidi.staseson@advisor.rogers.com
 Global Education in Toronto (formerly         ties?” He adds CE’s mandate should
 known as the Canadian Securities Insti-       include the notion that as markets
 tute), as investment advisors across the      change, so do products and new issues. In
 country head into the home stretch of         fulfilling their CE requirements, advisors
 “CE Cycle Two,” which ends Dec. 31.           are in effect properly protecting clients’
 (Cycle three begins in January 2006 and
 runs to the end of 2008.)
                                               interests, providing them with suitable
                                               services as a result of paying attention to               WON m!
                                                                                                          he tea
                                                                                              for t
    For the last 35 years, CSI has primarily   their own marketplace position.
 promoted its continuing education offer-        Flye says neglecting to do this is tan-
 ings to more than 30,000 investment advi-     tamount to failing your professional obli-
 sors, including 25 online “mini courses”      gation to clients. “Do I blame someone         Advisor’s Edge Report editor Scot
 which are between three and nine credit       who doesn’t do it for two years and then       Blythe received third place in IFIC’s
 hours; seven in-class seminars; and 25 full   jams it all in the end? Yeah, I do blame       Fifth Annual Journalism Awards Pro-
 courses such as the Canadian Securities       them because they shouldn’t have that          gram presented at IFIC’s annual con-
 Course or wealth management techniques.       approach. Yes, business is business and        ference in September. His article,
    The courses aren’t restricted to IDA       time is short, but you owe it to your client   “Falling Knives,” touted the benefits
 members, Flye notes, but also apply to        to make sure you’re taking the time to be      of value investing and different invest-
 advisors who are licensed with other reg-     at the forefront,” he says.                    ment strategies and appeared in
 ulators within the mutual fund, banking         Further, failing your CE requirements        AER’s March 2005 edition.
 and insurance industries. For example,        comes with a cost, warns IDA assistant              “It’s great to be acknowledged and
 CSI’s    online   anti-money-laundering       regional director, Richard Korble, in the      it confirms we’re fulfilling our role,
 course satisfies three hours of compliance    form of a $500 fine, and then some, if         which is to provide advisors with news
 training and three hours of professional      you’re not onside with your required           that they can use,” Blythe says. “We
 development training for the IDA, but the     courses by “the last day of the last month     do try, in all our writing, to aid the
 courses are equally applicable to mem-        of the third year of the cycle.”               advisor in understanding the invest-
 bers of Advocis, the IQPF in Quebec and         Says Korble: “Find out where you are         ment universe as well as in building a
 the Alberta Insurance Council.                and don’t let it slide because the firm will   sustainable practice.”
    Flye says courses are also designed        definitely know who is lacking courses,             The program’s French-language
 for advisors who are multi-licensed. “As      and they’ll be hearing from their own firm     award will be handed out at the Que-
 we build our courses, we are very cog-        as well as us in the short term.”              bec Investment Funds Council’s annual
 nizant of making sure that they would                                 —Heidi Staseson        conference next April.



www.advisor.ca                                                                                       ADVISOR’S EDGE   |   NOVEMBER 2005     11

				
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