Banks Push Back on Investor Protection Reform
Banks and regulators at odds on proposed reforms aimed at protecting investors, writes Peter Watson. New reforms designed to provide better protection of individual investors has hit a major speedbump. Starting at the end of 2021, financial advisors are required to have a better understanding of the investment products they sell. This includes understanding alternative […]
Buy and Hold Stock Advice Could Backfire
The best financial planning advice might just prove to be your worst nightmare, writes Peter Watson Investors without adequate diversification are at risk under the current stock market volatility. Concentrated positions in companies that do not recover will cause financial harm. Evidence-based investing proves diversification is essential protection for your investment portfolio. The traditional advice? […]
Ontario does not support banning DSC fees
The momentum to change the way mutual funds are purchased hit an unexpected roadblock. Ontario Finance Minister Vic Fedeli recently announced that the new conservative government did not agree with reforms proposed by the Canadian Securities Administrators (CSA). The CSA is the umbrella group for all provincial securities commissions. Six years ago, they started an […]
Professional ethics are key to being treated fairly
News coverage over the past year has included items dealing with unethical behaviour by some large companies. There seems to be a heightened interest by many who want to be treated more fairly. Being treated fairly is a justifiable expectation in any business relationship, especially when receiving professional advice. Trust is an important ingredient in […]
Embedded commissions debate continues as changes loom
Do you fully understand how you pay for investment advice? If you are like many people, the answer is probably no. Changes are coming on how financial advisors are paid. Details of these changes are not known but investment industry participants have been debating this important topic for many years. What we do know is […]
Have a candid conversation with advisor about mutual funds
The winds of change continue to blow in the financial services industry. Hopefully, in the not too distant future, hidden trailer fees charged by mutual funds will be banned. A trailer fee is an embedded commission paid to the financial advisor whose clients own a mutual fund. There are those in the industry who believe […]
Disconnect between investor client and investment manager
There is a conflict of interest between the two major participants in the financial services industry. I anticipate this conflict will continue. Specifically, there is a disconnect between the investor client and investment managers responsible for managing mutual funds and other investment products. On the surface, it would appear that both investor clients and those […]