17 April 2017
By Ellen BessnerThis is the first in a three-part series on being prepared and cautious when faced with a potential compliance breach. This column explains why advisors who are interviewed by their dealers or regulators need advanced preparation. The second column, published on May 8, will be about how to prepare for such interviews — and if you need a lawyer. The third column, published on June 5, will be about the importance of thoughtful email exchanges pursuant to an investigation into a potential compliance breach.
13 March 2017
By Ellen BessnerYou should always err on the side of disclosure and seek permission from your dealer first before you accept any outside business activity (OBA). This applies whether you’re considering a role on your cottage association’s board; the board of a public or private company, for profit or not-for-profit entity; or even your club or community.
16 January 2017
By Ellen BessnerThis is the second in a three-part series on how advisors can reduce the risk of being sued. This column is on the importance of having a proper process for completing the know-your-client form. The first column, published on Dec. 19, 2016, focused on how to scrutinize prospective clients carefully. The third column, published on Feb. 13, 2017, will explore the importance of monitoring client changes.
19 December 2016
By Ellen BessnerThere are many ways advisors can stay out of court and avert regulatory attention, but scrutinizing your prospective clients carefully to avoid picking the wrong clients will help you reduce your chances of getting sued.
21 November 2016
By Ellen BessnerThere’s no question that a competent assistant can be invaluable to any professional, especially to a financial advisor’s business.
26 October 2016
By Ellen BessnerMany people approaching retirement have not saved enough, turning instead to their financial advisors to fix the problem. These clients tell their advisors to take what little they have in savings and invest it aggressively. Although this might fix the client’s problem, it creates a different problem for the advisor.
16 September 2016
By Ellen BessnerAdvisors across Canada are worried about the Canadian Securities Administrators’ (CSA) proposal that all advisors be held to the “best interest” standard. Currently, advisors must deal fairly, honestly and in good faith with clients. In fact, both the Mutual Fund Dealers Association of Canada (MFDA) and the Investment Industry Regulatory Organization of Canada (IIROC) include the best interest standard in their respective provisions addressing conflicts of interest so that there are certain safeguards even without the proposed changes. So, why all the fuss?
29 August 2016
By Ellen BessnerCanadian securities dealers are all subject to an Ombudsman for Banking Services and Investments (OBSI) review if clients issue a complaint. We all know what happens to dealers when OBSI finds in clients’ favour, but most don’t know what happens to clients when OBSI finds in dealers’ or advisors’ favour. The difference is quite striking.
2 August 2016
By Ellen BessnerThis is the second in a two-part series on the steps advisors and their dealers can take to protect senior clients and meet the new standards that focus on the vulnerability of senior clients. This column will drill down on the power of attorney (POA), one of the most challenging issues facing advisors who serve senior clients. The first column explored what you need to start doing to meet the standards.
4 July 2016
By Ellen BessnerThis is the first in a two-part series on the steps advisors and their dealers can take to protect senior clients and meet the new standards that focus on the vulnerability of senior clients. This column describes what you need to start doing to meet the standards; the next column, which will be published on Aug. 2, will drill down on the power of attorney (POA), one of the most challenging issues facing advisors who serve senior clients.