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Wealth Professional | 03 Feb 2015, 09:31 AM Agree 0
Regardless of the CRM2 extension, the onus is undeniably on embedded-commission advisors to prove their worth, caution their fee-based counterparts.
  • Kathy Waite Your Net Worth Manager | 03 Feb 2015, 12:35 PM Agree 0
    Apart from the fact that the cost of CRM2 will ultimately be passed onto the investor, whose MERs are usually way too high anyway, I can only think this is all good. More transparency. Give people a choice. Clients just want to know what they are paying and what they get for it. If you don't want to tell them you are probably gouging them.
    Lets treat clients like we would like to be treated .
  • Harley Lockhart CLU CHFC | 03 Feb 2015, 01:18 PM Agree 0
    My challenge with this article is that it seems to infer that commission based advisors don't provide as robust a service as their fee-based counterparts and don't earn their commissions.
    In the same way that method of compensation is irrelevant as to the integrity of the advisor, it is equally irrelevant as an indicator of the quality of the services provided.
    I do agree that regardless of compensation method, advisors should educate their clients to the value they receive.
    Being transparent helps build trust. However, making specific rules that dictate one method of providing transparency, like all narrow rules-based financial regulation, is expensive to the consumer and interferes with the client/advisor relationship.
    One of the greatest benefits financial advisors bring to clients is their ability to match extensive financial knowledge to specific client values. The information/knowledge is readily available on the internet. Matching information/knowledge to values is a skill not so readily available. Restricting all advisors to one narrow behavioral channel deprives consumers of this most valuable service we can provide.
    Let's all make sure the Canadian financial services industry retains choice for the consumer. Let them decide who they want to trust and what business model is acceptable to them.
    Let's treat clients like we would like to be treated--freedom of choice.
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