Investment firms are wooing star advisers – in exchange for their client book

Canada’s investor protection framework has long had a reputation for being weak and not particularly well-enforced. Investors are still often paying excessively high fees and hidden charges on investment funds. Advisers are often under no legal obligation to act in their clients’ best interest. And even when an investor has been harmed by their investment dealer, there is no binding dispute resolution system to ensure their losses will be recovered.

Multimillion-dollar payments are dangled as inducements, on the condition that the adviser brings the majority of their book of investors with them. Big changes across the investment management landscape in recent years have made for heated competition between firms. A push for lower fees and greater transparency around the cost of financial advice has squeezed profit margins. Slowly but surely, mutual fund fees in Canada, as around the world, are trending downward, while more and more investors are drawn to a lower-cost passive investing approach.

“It’s worth paying up to bring on high-end financial professionals,” said Matthew McGrath, chief executive officer of Optimize. Mr. Spiring pointed to his firm’s upgraded technology program, an open product shelf that does not include proprietary products, and the ability for advisers to own equity in his growing company. “When you can directly explain to a client what they will receive in a move, then it becomes pretty transparent on why you are suggesting a move,” he added.

But these inducements in recent years have inflated well beyond what could be considered a reasonable cost of transition. “The amounts being paid are so gross that it would be shocking if consumers knew how much many advisers are being compensated,” said Harold Geller, an Ottawa lawyer who represents investors with claims against their advisers.

The New Self-Regulatory Organization of Canada, which is the temporary name given to the group of merged regulators overseeing all investment dealers in Canada, said advisers are expected at all times to properly manage conflicts of interest. “Should an adviser choose to move to a new firm they, and their firm, must continue to follow all disclosure and conduct requirements including those relating to conflicts of interest,” the New SRO wrote in an e-mail.

Scum is an everywhere around! Scum on top, besides from bottom Scum almost everywhere is found Scum is a hole in doughnut from Tim Hortons 🤣😆

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

ANC Podcast: Feb. 24, 2023 | Ontario Premier Doug Ford on ZEV mandates, EV rebates and investmentWe caught up with Ontario Premier Doug Ford at the Canadian International AutoShow in Toronto. He shared his thoughts on the federal ZEV mandate, saying as soon as a government “starts mandating, it never works out.” He also said dealing with the U.S. Inflation Reduction Act is the responsibility of the federal government. And, he explained why he refuses to offer Ontarians an EV rebate.
Herkunft: AutoNewsCanada - 🏆 77. / 51 Weiterlesen »

Province announces 10-year cancer action plan, including $440M investmentThe initial funding aims to expand cancer-care teams, revise payment models for oncologists and other cancer-care professionals, improve cancer screening programs, and support travel costs for patients from rural communities. How about a twenty/ thrirty/ forty year plan comrade? Family doctors, family doctors, family doctors! What good is all that money if you don't have a doctor to gain access to those treatments?
Herkunft: timescolonist - 🏆 15. / 75 Weiterlesen »

Province to launch new 10-year cancer care plan, $440-million initial investmentThe provincial government has announced a new 10-year action plan aimed at improving the care cancer patients across the province receive. Premier David Eby was joined by the provinces health minister Adrian Dix in Vancouver this morning where he announced an initial investment of $440-million that will go towards delivering improved care for British Columbian’s […] with the vaccine causing cancer, this will come in handy You mean $440 Million dollars to try and convince people to kill themselves. BCNDP and liberal_party corruption is alive and well. 10 years to late: for how many is the real question!
Herkunft: CHEK_News - 🏆 59. / 55 Weiterlesen »

Opinion: Green Line LRT – A key investment in Calgary’s futureOpinion: Green Line LRT – A key investment in Calgary’s future yyc yyccc There is zero reason to believe anything yyccc cityofcalgary calgarytransit or advocates tell us about greenline is true. From costs, benefits, ridership, environmental, timeline & on & on everything out of their collective mouths must be taken with a massive grain of salt The final cost will be at least double the original estimate. It will be a green elephant, popular with people who wouldn't be caught dead on it...like politicians. Would love to see the numbers that say we’re at 80% pre pandemic levels. I take the train every day. 5 yrs ago would be standing room only with odd time having to wait for next one. Now last stop out of core plenty of seats, they could get away with 1-2 cars.
Herkunft: calgaryherald - 🏆 64. / 52 Weiterlesen »