29 October 2018
By Ellen BessnerIn my many years as a litigation lawyer, I have seen so many distressed advisors spend countless hours fighting in court over client losses. Sometimes, the complaints were due to the advisor misunderstanding the client’s risk profile and sometimes it was because the client was misleading the advisor. But whatever the surface cause, the root cause is the same: the failure of both parties to properly understand and communicate.
1 October 2018
By Ellen BessnerToo much information can be confusing and unhelpful in helping clients understand their account statements, the products you offer and their own financial plans, but regulators and investor advocates seem to believe the opposite.
4 September 2018
By Ellen BessnerAs advisors are under constant pressure to grow their businesses, they’re often not attuned to decisions that place them into potential, perceived or actual conflicts of interest that could end their careers.
7 August 2018
By Ellen BessnerGiven that I provide legal advice to the investment industry, a big part of my job is to keep on top of and know all the big changes that the regulators announce on a timely basis. To do that, I read the web feeds from both of the industry’s self-regulatory organizations (SROs) — the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada — and the Ontario Securities Commission, as well as Investment Executive’s newsletters, every day.
9 July 2018
By Ellen BessnerAlthough there may be clients who fit into a mold based on their age, don’t make assumptions when meeting clients. Instead, explore facts surrounding the clients. Who are they? What are their values? What are their immediate, intermediate and long-term needs and goals?
11 June 2018
By Ellen BessnerSeveral provinces have amended their securities laws to permit the Mutual Fund Dealers Association of Canada and the Investment Industry Regulatory Organization of Canada (the investment industry’s self-regulatory organizations [SROs]) to collect their fines in court. This will have serious implications for advisors who have left the industry following a significant infraction.
14 May 2018
By Ellen BessnerRunning a financial advisory practice is no easy task. There are significant, inherent risks when you’re in this business, but there are two steps you can take to reduce these risks substantially. You need to:
16 April 2018
By Ellen BessnerThe results of Investment Executive’s annual Regulators’ Report Card reveal that, except for a few exceptions, compliance officers and company executives in Canada’s investment industry have a bleak view of the regulators that oversee their businesses.
15 March 2018
By Ellen BessnerMost advisors acquire books of business from other advisors without having had the opportunity to review the quality and the risks arising out of the book. So, what should you do, and in what order, to minimize those risks?
16 February 2018
By Ellen BessnerAlthough many advisors are tempted to attend regulatory interviews without legal representation, this is a big mistake they would be wise to reconsider.