Wealth Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Wealth Professional | 03 Jul 2015, 09:00 AM Agree 0
It appears more advisors are turning to segregated funds in a move to increase commissions once CRM2 regulations take effect.
  • Investment advisor J | 03 Jul 2015, 10:34 AM Agree 0
    Shame on all who put clients in seg funds to get a higher comission. What add value are they adding for the client. NOTHING
  • Barb Amsden | 03 Jul 2015, 11:37 AM Agree 0
    Agreed if an investment is being made to a client for commission only. This is what is euphemistically described as unintended consequences. This issue will remain a challenge while similar products are under different and unequal regulatory regimes. Quis custodiet ipsos custodies - who watches the watchment? Who regulates the regulators?
  • paul P | 03 Jul 2015, 02:54 PM Agree 0
    Seg funds do add value, especially for estate protection, I agree they are not for everyone, and they can also be done FEL, NL or DSC, so it should still be based on the discussion and planning with the client. in my world seg funds pay the same commission as mutual funds with the same load choices, this is the proper way to price them, this way, the client really gets the product and pricing that their unique plan calls for.
  • Peter | 03 Jul 2015, 05:04 PM Agree 0
    From the consumer's point of view, why are compliance rules different for Seg funds and Mutual funds?
    And what about the hundreds of millions of dollars that are "invested" each year in over-funded UL and whole life policies? I don't see much compliance there either other than a very brief KYC.
  • paul P | 06 Jul 2015, 11:53 AM Agree 0
    Peter, I agree with you, I follow the same process for seg funds as I do for Mutuals, purely a regulatory issue between FSCO and MFDA.
  • Robert Roby | 06 Jul 2015, 04:18 PM Agree 0
    Get rid of these snake oil salesman once and for all. Hopefully regulators will fully audit the books of the dealers who are allowing this.
Post a reply