Brondesbury report leaves advisors wanting

Brondesbury report leaves advisors wanting

8 Comments
  • Kevin O'Brien 2015-06-16 10:44:09 AM
    I agree the cost of doing business has been left out of the discussion. Especially when you consider that back in the beginning of this industry the application the trade tickets and the physical trades were executed outside of the advisor's office. Today all the paper, Administration and cost have been downloaded to the advisor with out regard to cost. I can remember when an account application was 3 pages long and had 4 carbon copies. Today it is in excess of 16 pages with a further 20 pages of compliance paperwork. The solution? Perhaps advisor's should be charging the mutual fund company's and ETF providers a fee for office supplies and administration?
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  • Terry Lynn Adamson 2015-06-16 11:15:11 AM
    I was discouraged as well by the report. I am a Financial Planner first and foremost for my clients. Compensation is not how I choose the funds I use, and I always put the needs of my clients ahead of my own, as most of my colleagues do. But we also have costs to run a business, and need to be paid.
    The average Canadian does not want to pay out of pocket for a proper financial plan. Yet it has been proven many times that clients with advice outperform those who do not have good advice. It isn't about which funds outperformed - that doesn't matter if the client doesn't stay invested. The study should compare the actual returns in the client accounts with an advisor versus returns in "do it yourself" accounts at online brokerages, not the fund itself. I'm positive the client accounts with an advisor outperform, and more of those clients actually achieve their goals.
    Of course funds with embedded compensation underperform their no fee version - what a ridiculous conclusion. Don't need a study for that! The client still has to pay for the advice and service. My confidence that the regulators understand this business and understand what Canadians need dwindles more everyday.
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  • Ken kivenko 2015-06-16 4:12:41 PM
    We have had our team review the report on detail.It will be posted on canadianfundwatch.com tonight.A recent FPSC return projection for the decade ahead came up about 5% so after fees , taxes and inflation , the advice industry will have to be very,very efficient.
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