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Wealth Professional | 28 Jun 2013, 12:00 AM Agree 0
In the name of Main Street – and not just advisors! – regulators must resist the urge to ban embedded commissions, argues the president The Investment Funds Institute of Canada.
  • John Rathwell | 04 Jul 2013, 09:16 AM Agree 0
    If the government removed the embedded commissions I would have to lay off staff and stop taking smaller accounts. My clients don't complain now about fees, and this whole issue is going to create more harm than good.
  • Isaac | 10 Jul 2013, 10:42 AM Agree 0
    Imbedded commissions has as much effect on the value and effectiveness of a financial advisor's advice as the dental fee guide has on getting a good filling or a bad root canal. If the regulators want to protect the public from bad advisors, raise the entry requirements to the industry, educate consumers on best practices & increase disclosures.
  • Peter B | 23 Jul 2013, 03:49 PM Agree 0
    Embedded commissions are deceitful and dishonest. Transparency is the hallmark of ethics and perhaps some of the so called "Advisors" who lament removal of these fees will destroy their businesses should look at transactions from a Customers' perspective; Perhaps they would actually like to be informed of the fees their "impartial" Advisor is earning... better still - negotiate those fees. The old days of hidden and under-ther-counter commissions are gone - not recently either - long gone. Those who do not evolve will be put out of the industry - and for good reason. As Regulators struggle to grasp the impact of legislative measures to control the industry, the opportunity to self-regulate is almost lost - due to the bloody-mindedness of the last Brigade....Never ind they will all drift away, replaced by a new breed of professional fee-for-service Advisors who are not afraid to rely on their skills to provide long-lasting solutions to clients.
  • Christine | 29 Jul 2013, 08:46 AM Agree 0
    I left a comment about my conversation with a client (500K invested-- so not a small account!) on proposed changes but it wasn't uploaded. She made an interesting point. If the new rules mean that she has to cut a cheque from her bank account to pay for advice for her RRSP investments, she won't invest another dollar. Even if it was for a lower amount, she wouldn't do it because she doesn't want to diminish her cash now or later. She can't access her RRSP account now to pay those fees with before tax dollars, and if there is no tax advantage when paying for advice on RRSPs as opposed to open moneym how does this help her? She asked "and what about during retirement? Am I going to have to cut a cheque from the aftertax proceeds of my RRIF?" Food for thought.
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