"This report is meant to provide an overview of some of the deceptive practices with concentration on the sales of investment products. The same practices prevail throughout the financial services from the up-selling of bank services and selling insurance products to the selling of securities that include shares and mutual funds".
It is almost the second anniversary of High Rock Capital Management Inc.'s Private Client Division (High Rock Capital Management was founded in 2010) which we established to provide families with a better alternative to that which was available to them from the mainstream bank and financial industry advice channel, because from our experience so many investors were being taken advantage of.
I had seen this first-hand! And hence the birth of our Private Client Division as I left the "old-school" to help lead the next, more open and transparent chapter in financial services.
"In SIPA's report "Advisor Tiltle Trickery", there were 121,932 total registrants in Canada as of Sept. 16, 2016 in the investment industry. 4,076 person's or 3% of that total are legally registered in the category of Adviser or Adviser Representative. Only 3% are registered in the category where a true fiduciary professional relationship is legally required to be delivered to you as the investor."
"All others are registered as Dealing Representative, i.e. salespersons who legally act as an agent of the dealer, and NOT firstly an agent of the investor. Client relationship rules currently allow this to be hidden from your view, and the investor is expected to be responsible for learning this. This bait and switch is a root cause of a great deal of harm being played out on nearly every Canadian investor."
High Rock is licensed by the Ontario (BC, Alberta and Saskatchewan) and as a Portfolio Management Company and an Adviser Representative which holds us to the higher responsibility of Fiduciary.
We do go above and beyond the required regulations with an Independent Review Committee (an outside compliance firm) who polices us as far as reporting back to clients on outstanding complaints (of which there are none) and any possible conflicts of interest as well as to ensure that our partner portfolios hold the exact same securities and same entry and exit points as our clients. http://highrockcapital.ca/uploads/3/4/2/5/34254660/hrcmi_ircreview_december2016.pdf
To the best of our knowledge, we are the only portfolio manager in Canada, managing client money on an SMA basis who has this.
So my question to any of you who may be reading this:
Why would you choose to settle for the lesser quality advisor? It can't be the fee (our fees are as competitive, if not more so).
Our long-term performance is better than our benchmark average (and we take less risk to do so).
Obviously trust is a huge issue. Are you certain you are not misplacing your trust? Do you really know your advisor?
Ask the questions.
We are the alternative.
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Scott Tomenson,CIM Managing Partner, Chief Investment Strategist