“Anytime you say here’s my money, go do something with it, you are always taking a risk,” says Daniel Hanzelka, financial advisor and coach at Financial Reset. “The biggest thing I say to (my clients) is ‘what is your exit strategy?’ Getting into something is the easy part, but how do you get out?”
It may be premature to call ‘forex’ fraud the new trend, but advisors aren’t shy to say Canada’s regulatory boards should get with the program and coordinate their efforts to combat it more efficiently.
“The truth is it’s great to have independent provincial regulators to ensure best practices for advisors….,” says Chris Karram, advisor and partner with Safebridge Financial Group. “….but having a more amalgamated or communicative presence would go a long way for everyone.”
Hanzelka disagrees, arguing that regulators have too much control and that investors should do their own research to fully comprehend the risks they are taking.
“To me, the governments are overseeing way too many things already,” he says. “It’s taking the onus from the individual investors. They need to understand what they are really getting into.”
Canada is presently the only well-developed country without a national securities regulator. One is apparently in the works, according to the federal government, but it is not expected to be up and running until 2015.
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