Like love, money is an inexhaustible source of emotions of all kinds. There are moments of euphoria when winning the lottery, of anger if one is stolen, of injustice, of insecurity. But it is known that companies have no feelings, even when they manage our economies.
I spoke to you last week about a client of IG Wealth Management who, 17 years after his first investments with this institution, discovered that his financial advisor no longer took care of him. The 83-year-old man learned by email that his file had been transferred to IG Gestion Connectée, a service center that can be reached via the internet or by calling a 1 866 number.
PHOTO DOMINICK GRAVEL, LA PRESSE ARCHIVES
Edmond Grignon, 83 years old
His story struck a very sensitive chord among savers, if I trust the content of the messages you sent me.
“We are a couple who experienced the same situation. Contrary to the IG representative’s explanation, there is no discussion. We are presented with facts. We had no choice. Only difference, it was my representative who dumped us over the phone. We feel betrayed after a relationship of trust that has lasted for more than 37 years with IG,” Mr. Lussier wrote to me.
Renée Blouin told me that she and her sister, aged 84 and 83 respectively, were very “destabilized” and “disappointed” by the unexpected transfer of their account.
You feel left out. Pier. I know I’m not paying anymore, but I was for 23 years. They can keep me for a little longer!
Renee Blouin
The octogenarian who held around $50,000 raises a very relevant point: “When our funds decrease and we get older, it’s easy to feel insecure. This is where having an advisor who knows us and who we can talk to face to face becomes important. » When we see to what extent seniors denounce the closures of Desjardins ATMs, it is obvious that depriving them of the right to personalized service will be very poorly received.
According to Carl Thibeault, Senior Vice-President Quebec and Atlantic of IG Wealth Management, Mr. Grignon was the victim of an “error” since no one is “pushed” towards IG Connected Management against their will. He also told me that there was “no minimum” amount of assets required to retain your financial advisor. The decision to “propose” the transfer of the file to IG Gestion Connectée depends rather on the complexity of the files. “Someone could have $22,000 or $12,000 and have a very complex situation. Whereas someone could have $200,000 and a very simple situation and have processing alignment with IG Connected Management. »
How exactly do we predict whether a client’s financial needs will be simple or complex in the medium or long term?
Financial institutions have long demonstrated their ability to flood us with tempting offers for their credit cards. My bank always sends me an email in January to encourage me to participate in this marketing invention called “RRSP season.” To end a relationship between two humans, they seem less competent.
A Desjardins customer, Mr. Bérubé was the victim of a “lack of finesse in customer relations,” to use his words. His advisor, whom he appreciated, moved into private management. A great classic; top performers often take this route.
“I was not warned. I’m happy for him. However, I found that he and his organization could have at least sent a generic communication to his customers to let us know. I transferred about $500,000 elsewhere as a result. »
Surprise ! When a client is disappointed, doesn’t feel important and loses confidence, he or she may divorce despite all the time and energy involved.
This is what Luc Gaudet did, after receiving the same email from IG as Edmond Grignon in mid-January. A customer for ten years, he immediately called his advisor to tell him of his disappointment, his anger and his plans.
I formally disapproved and forbade the transfer, telling him that they would shortly receive my instructions for transfer to another institution.
Luc Gaudet
The problem is that the maneuver was not free. “What adds insult to injury is that transfer fees [de 135 $] were imposed on me. I was thrown out by my advisor and I have to pay more to regain my rights to my money. I am also thinking of filing a complaint with the AMF [Autorité des marchés financiers]. » Luc Gaudet deplores this imposed break, because he planned to demobilize his CRI (immobilized retirement account) of $63,000 to draw an annuity during a sabbatical year, a need which is “quite complex”, he said in reference to the comments from the top executive of IG.
This story obviously raises issues of income and remuneration in the world of finance. Financial institutions are not NPOs. And financial advisors don’t volunteer. They have to earn their living and we can hardly blame them for preferring the most lucrative accounts, in the context where they cannot take care of an unlimited number of clients.
But long-time customers, particularly seniors in disbursement mode whose savings are constantly dwindling, deserve to have their history recognized. A simple question of respect.
1. Read “His Financial Advisor Abandoned Him by Email”