We won’t get into the details, which you can read at the Canadian Finance blog
, but if used effectively you’ll pay off your home mortgage much faster and at the same time have built a bigger equity portfolio than is possible without using the Smith Manoeuvre.
Most importantly, it’s completely legal.
In Snyder’s case some details weren’t flushed out in the Hearing Panel’s reasons and decisions. But if we’re talking about Series A funds, it would have involved an annual service fee of almost $14,000 plus whatever front-end fees the clients paid when first purchasing the funds. That’s a lot to pay each year for something most people and not just these 15 clients would have trouble understanding.
Go ahead and read the 23-page document
paying particular attention to the section detailing the leveraged investment strategies of Lloyd Snyder. A forensic accountant might have to take a second read.
It seems on a weekly basis across the country the MFDA is reaching settlements with advisors who seek to push the envelope in the name of generating revenues forgetting the fiduciary standard’s best friend: the interests of the client above all else.
The strange thing in this instance was this was Snyder’s first run-in with the MFDA, a big reason why he wasn’t banned for life.
How does an advisor go off the rails after 20 years with a spotless record?
That’s one of life’s great mysteries.