9 August 2019
By Michael Bookman, Ellen BessnerThe risk of losing your licence is real if you agree to be executor of a client’s estate and/or accept an inheritance from a client. Advisors must ensure they are familiar with the rules governing these matters and the serious implications of contravening them in order to protect themselves from severe regulatory penalties.
12 July 2019
By Ellen BessnerWith the average age of the population increasing, there are also more senior advisors than ever before. Those in the financial services industry need to consider their succession plan. While the focus of this article is on senior advisors, it actually applies to any advisor, as you never know when a tragedy may hit and you’ll need a ready-to-go plan to execute.
14 June 2019
By Michael Bookman, Ellen BessnerThe investment industry, like most industries, can experience conflicts of interest among its participants. A conflict of interest occurs when a person or entity has competing loyalties in a given set of circumstances.
17 May 2019
By Ellen BessnerWhen a provincial regulator or self-regulatory organization (SRO) like the Mutual Fund Dealers Association (MFDA) or the Investment Industry Regulatory Organization of Canada (IIROC) alleges you committed an infraction, you should respond. Why? Because if you do not, the implications will be much more severe.
18 April 2019
By Michael Bookman, Ellen BessnerThere are many questions regarding fiduciary duties that may arise between a financial advisor and a client. The law is not always clear on when these duties arise and, when they do arise, how financial advisors can discharge these duties to their clients.
22 March 2019
By Ellen BessnerIgnoring women clients is detrimental to your business, as well as to women. Women should be included in decision-making associated with their own financial future, even if their husbands or fathers insist otherwise.
22 February 2019
By Michael Bookman, Ellen BessnerFinancial advisors face unique issues when serving senior clients, particularly when confronting power of attorney (POA) issues. As an advisor, you must remember three key principles: your duty is to your client; you must address potentially sensitive issues with your clients — issues such as capacity, POA and estate planning — early in your mandate as their advisor; and you must do your due diligence. If you keep these three key points in mind, your clients will be well-served and risks can be reduced.
28 January 2019
By Ellen BessnerThe general view of updating clients’ “know your client” (KYC) form is that the process is a pain for clients and a necessary evil for registered advisors, only required for compliance purposes. However, KYC form updates often are a missed opportunity to improve your relationship with clients and to grow your business.
2 January 2019
By Ellen BessnerOn many occasions, I have been asked whether robo-advisors or artificial intelligence (AI) will replace human advisors. My answer is that it depends on advisors’ ability to connect with their clients. Using clear and consistent communication with clients, while managing their expectations, will lead to success. Failing to do this may lead to clients replacing you with a robo-advisor or AI.
26 November 2018
By Ellen BessnerI have spent more than 25 years defending advisors in litigation and regulatory matters. The common thread underlying these issues is the communication gap between advisors and clients. When clients are secretive, advisors fail to draw them out; when clients expect too much, advisors fail to manage those unreasonable expectations. Although advisors steer the relationship, both advisors and their clients need to bridge the communication gap to reduce the threat of litigation.