Advisors working for the big banks and brokerage firms have their backs against the wall, according to one Toronto advisor.
Responding to a recent CBC Marketplace investigation – which reported that Canadian investors are receiving “inaccurate, misleading and inappropriate advice," particularly during RRSP season – Lynda Weinrib, investment funds advisor with Worldsource Financial Management, Inc., told WP that many advisors have no choice but to act as salespeople to keep their jobs.
“There is so much conniving out there,” she said. “There are very, very few people in this industry who are not trying to keep up with the Jones’; therefore they have to make the sales.”
Weinrib - who admitted leaving a dealership, herself, many years ago to avoid the "temptation" to sell - said that many dealers restrict their advisors to selling specific in-house products, while banning other fund-management products. A certain income must also be generated, or advisors risk losing their jobs, she said.
“The reality is, most dealerships or brokerage firms are really trying to get people to sell, trying to get people to bring more money in,” she said. “(Advisors) are stuck between a rock and hard place because they’ve got to put the roof over their heads, (keep up with) the mortgage payments, put food on the table for the kiddies and everything else.” (continued.)