Q: What is the biggest change you have seen in the industry since you joined
Controversially, I think not enough has changed. Take technology – the industry is still in the dark ages, relatively speaking. Wealth managers are investing in technology but most are still playing catch-up. At Canaccord Genuity Wealth Management UK, we are investing a huge amount in tech but we recognise we have a way to go.
Diversity is another area that hasn’t changed as much as it should. There are not enough candidates from diverse backgrounds and ethnicities, and a shortage of female candidates. The industry needs to work together to raise awareness of wealth management as an industry people want to work in.
Q: What is the investment topic most often brought up by your clients?
Without doubt, market turmoil and inflation. We’re lucky to work with a broad client demographic – from retirees through to their grandchildren – and their circumstances are very different. But everyone is worried about inflation and wants to know what will happen to their investment portfolios and how we can protect them. It’s our responsibility to reassure them. A clear understanding of clients’ goals and an effective strategy for risk helps us structure their wealth to withstand these macro shocks.
ESG is another question we are always asked by clients. As an investment class, it performed poorly last year in absolute terms. However, clients – particularly younger generations – continue to be keen to invest in ESG. It will undeniably be a growth area in the years to come.
Q: Which piece of regulation makes the biggest impact on your day-to-day role?
The regulatory landscape has changed exponentially in the past 15 years and is now extremely complex. I’d say the Consumer Duty that comes into effect in July 2023 will be one of the biggest pieces of regulation we’ve had to deal with. It aims to put consumer needs and rights at the heart of companies’ client priorities. As we are a client-centric business, the hope is we already operate within this regulatory framework, but it will definitely have a big governance impact.
Q: What single change would you make to the wealth management industry?
I would make our industry more diverse because of the benefits it brings to businesses. The City has come a long way in the past 10 years but we’re not there yet. We have taken steps to improve diversity at our firm – our exco has 33% female representation, and we have a well-established diversity, equality and inclusion committee. We are proactive in trying to raise awareness of wealth management as an attractive career option for women, people from different ethnicities and from diverse socio-economic backgrounds.
Q: What advice would you give to someone just starting in the industry?
Have a clear understanding of staff, client service and investment performance because they are the fundamental drivers of a wealth management business. Staff wellbeing is ultimately about culture. Get a good understanding of the culture of your firm and its brand values – ours are accountable, aligned, approachable and ambitious – as it is the culture that determines client service.
Regarding client service, it’s a very competitive environment, so don’t underestimate how small things can make a big difference. Ensure clients receive the best service from the moment they make a call or walk in through the door. Finally, investment performance is imperative. You need to be passionate and curious about investment. Keep asking questions and learn from the people around you, the people who have experienced market cycles. Glean the information you need to make wise choices. You should never stop learning.
BIOGRAPHY
David Esfandi was appointed CEO of Canaccord Genuity Wealth Management in March 2014. He was previously managing director of Ashcourt Rowan AM, where he played a key role in restructuring the business and acquired a leading private client team from a large European bank. Prior to that, he spent 10 years with Deutsche Bank.
This article first appeared in the January edition of Portfolio Adviser Magazine
