Plus, a DIY investor's regrets  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
Saturday, May 4, 2024

In this week's edition

Staffing up

Referrral arrangements

DIY losses and regrets

CIRO's proposed fee model

Your thoughts on fiduciary duty

If you’re noticing a strain on business operations, it may be time to bring in more staff instead of ignoring the problem. Financial professionals who have been there offer their insights.

Industry vet and ethics educator Rod Burylo weighs in on vetting the professionals you work with. If you’ve attended conferences over the years, you’ve probably heard Burylo talk about having the ability and integrity to deliver on a clearly articulated value proposition. Here, he suggests you vet other pros using those same criteria.

Eleven Emerge ETFs were placed under an unprecedented cease-trade order that began in April 2023 and lasted until the ETFs were delisted in October. Unitholders remained trapped in the ETFs until the funds were terminated in December. Melissa Shin spoke to the investor who was the lead plaintiff in a proposed class action lawsuit that ended up not proceeding, because no money was available for recovery. The investor shared his losses and regrets, and cited the need for transparent communication from fund managers.

The Magic Number
82
That's the percentage of Canadian poll respondents who said inflation was negatively affecting their retirements.

Some dealers will pay more under a new single fee model proposed by the Canadian Investment Regulatory Organization (CIRO). Under the proposal, firms’ annual fees would be calculated based on both the size of their revenues and number of reps — a method that could apply to all firms regardless of size or model, the regulator said. Investment dealers and dually registered firms would fund about 71% of the regulator’s costs under the new model, up from 61% under the current model. As a result, fund dealers’ share would drop to about 29% from 39%.

Your thoughts on fiduciary duty

Last week’s newsletter asked about clients inquiring whether you’re a fiduciary, and what your response to that inquiry is. The consensus seems to be that clients don’t know to ask the question in the first place. Several advisors shared practices they’ve observed that don’t align with a fiduciary standard or clients’ best interests, such as inadequate liquidity, inappropriate portfolio allocations, or promises of high returns. A couple of advisors cited costs and fees. Clients should be told about the compounding effects of fees on investments, one advisor said. Another said clients’ best interests aren’t served under certain fee structures, such as fee-based for a buy-and-hold investor. If you have further thoughts on the topic, let me know in an email.

Michelle Schriver
MANAGING EDITOR
Michelle is an award-winning journalist who has been with Advisor.ca since 2015.

 

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