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Wealth Professional | 05 Apr 2016, 08:15 AM Agree 0
Study warns that altering the way in which advisors are compensated could have a negative impact on investors
  • Susan McArter CFP | 05 Apr 2016, 10:28 AM Agree 0
    I totally agree, it is ludicrous in my opinion to remove a process that clients use and like to satisfy the critics who supposedly are pushing for the bundling of fees on the premise that this will benefit the public. This will hurt the people who they profess are being protected. Its a no brainer, increase the education requirements for any one who wishes to work with the public dispensing advice and offering investment products. Require that they belong to one organization that monitors their credentials and regulates their activity. Cut out all of redundancies, stop listening to the few loud voices that continue to garner all of the attention pushing for these changes and take a serious look at offering options. Stop dragging my profession into the gutter based on a few bad apples. We are not all unethical and unconcerned for our clients well being.
    From someone who cares....
  • Ken | 05 Apr 2016, 10:36 AM Agree 0
    Look at research showing the adverse impact of conflicted advice on investor outcomes. Read about the number and nature of complaints filed each month with the MFDA. Consider the amount of leveraging being utilized by unsophisticated investors who should not be borrowing to invest. Read about the poor state of retirement income security of Canadian seniors. Examine facts and the right regulatory reforms will be clear. There are some people today that say drivers should be given the choice of using seat belts - thankfully they are a minority.
  • Dianne | 05 Apr 2016, 12:48 PM Agree 0
    Advisors in Canada, stand up and be heard, make your voice known to the Regulator's. Canadians need to keep their jobs not loose them. All Canadians should be able to afford and have the right to financial advise.
  • Michael Hill | 05 Apr 2016, 04:13 PM Agree 0
    I'm not sure why there seems to be so much animosity on this issue. As long as clients are given full information, as the new guidelines do and clients are given a choice, commission, fee for service up front or annually fees, as long as the client knows and understands, there should not be an issue.
    To ban any type of payment is wrong only because it prevents clients from having options.
    Much of any type of transaction is commission based and in most cases, clients or purchasers know this in advace; auto sales, real estate, appliances, legal fees and much more are done on a commission. Other types such as bank fees, ongoing plumbing service, furnace and other appliances fee annually, as do lawyers on contingency or the annual doctor's fillings fee and clients can say "yes" or "no". There should be no difference in financial services. Banning any type of payment restricts business and prevents clients from options which may well help them.
  • Jim | 05 Apr 2016, 07:20 PM Agree 0
    I do not agree that commissions should be banned from the industry. That is not the industry's problem. The problem is, I think, the quality of advise that is given is lacking. Let's start by identifying what a financial adviser is and what qualifications one needs to be known as a financial adviser. Some call themselves Wealth Consultants, Wealth Managers and many other things without the training or education to do what they say they can do. The financial institutions and Advocis needs to step and decide what is financial advise and what qualifications are required to call your self a Financial Adviser. This classification is forever being devalued because no one will decide what education is need to give quality financial advise.
  • Russ | 06 Apr 2016, 05:09 PM Agree 0
    I question the validity of this study. A December 16, 2014 article from the Financial Times, "Advice reforms broadly working, says watchdog," provides a rather different report. There is a decline in "commission bias," that is the sale of high commission products while the sale of "cheap tracker funds" (index funds in our parlance) is on the rise. The British Financial Conduct Authority further estimates that there is only a market for approximately 25,000 advisors in the UK, so the decline in the number of advisors is appropriate and not a sign of a lack of advice. Finally, the article points out that DIY investing and direct-to-consumer services are increasing, particularly among the less affluent, with increasing price competition meaning consumers are able to get better deals through the increasing availability of online services.
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