The CSA is now pushing investors to do background checks on prospective advisors, at the same time arming those would-be clients with two new and powerful weapons.Will you pass this background check?
The CSA is now pushing investors to do background checks on prospective advisors, at the same time arming those would-be clients with two new and powerful tools.
“Before investors work with a financial (advisor), it is essential that they do some homework on the advisor’s background and registration status,” said Bill Rice, CSA chair, in a statement this week. “Investors must do their due diligence whenever they are considering making an investment with a new financial advisor, and the CSA resources can help.”
Indeed. The organization of Canadian securities administrators is beefing up the screening tools it offers investors, ths month added two new resources to its website designed to facilitate background and registration check.
"Check Before You Invest" and "Understanding Registration" effectively pave the way for the following sleuth work:
- The National Registration Search – an online tool that makes checking a financial advisor’s registration quick and easy;
- Understanding Registration – a resource that helps investors understand the results of their search;
- Check Before You Invest – a workbook that people can use to record results of their background research; and
- Working with a Financial Adviser – an updated brochure that walks investors through the steps they should take when considering and working with a financial adviser.
The invigorated offerings are largely welcomed by advisors as a way of reducing the kind of investment fraud that continues to make Canadian headlines at the same time it erodes confidence even among the savviest of retail clients.