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Wealth Professional | 29 Jul 2016, 08:15 AM Agree 0
Insurance-wrapped investments pose conflict of interest to investors due to sales incentives and murky disclosure says investment lawyer
  • Bob White, CLU | 09 Aug 2016, 06:32 PM Agree 0
    It is a must.

    My practice is from the insurance and estate planning background. When Manulife introduced the Guaranteed many moons ago, you had to become mutual fund licenced in order to offer them to clients Income funds, and that was a good idea, because the product offered linked funds, not proprietary product.

    Now we see advisors dropping the mutual fund licence to concentrate on seg funds because they do not have to do all the mind boggling administrative/rule based paper work and disclosure. As such, in my opinion there is less disclosure, and when you only offer one product type, and can not talk about the other, then the consumer will never be able to make a truly educated decision.

    Another example of this, but from the opposite direction is bank advisors not disclosing the value of seg funds, because they do not offer them, or even of greater concern, only offering housed product.

    So how is that for transparent investing.

    There needs to be a lot of change that should take place, the problem is that too many parties are looking through different port holes and no one sees it clearly. There needs to be BIG thinking, and it needs to be done with a significant representation from advisors, and in particular from those who have well rounded practices and are seasoned with client experience.

    Just my opinion, but a good one I think!


    Bob White, CLU
    Member of Advocis since 1977
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