You do really need to read this:
The investment industry routinely uses the title “Financial Advisor” for their sales persons, whether they are selling mutual funds, insurance products (e.g. segregated funds), bank products (e.g. Principal Protected Notes), or acting as brokers to trade in financial products (e.g. bonds, shares, structured products).
Sales persons (dealing representative) have no legal requirement to look after an investor’s best interests. However, it is in the sales person’s interest to maximize his commissions. This can be done by selling the products that pay the highest commissions and by the use of leverage to increase the amount of assets under management (AUM) on which he generates commissions. Both of these initiatives are contrary to an investor’s best interests.
At High Rock we are licensed as a Portfolio Management Company with the Ontario, BC, Alberta and Saskatchewan Securities Commissions (OSC, BCSC, ASC, SSC) and held to a higher fiduciary responsibility that legally binds us to put the interests of our clients before our own.
This is a big distinction that is not necessarily always clear.
But it is enormously important.
See Rob Carrick's article in the Globe and Mail:
This is the alternative (different and better) that we offer:
Financial Planning (Wealth Forecasting), Portfolio Management (with a tactical option) and a fantastic client service experience at a very reasonable cost.
It is the future of personal finance: ensuring that you are not being "sold" anything that might have a conflict of interest attached to it (like being paid a commission).
Soon, if not already, you will be able to see what your Financial Advisor receives as "commission" and you should take a good hard look at it and ask yourself if you are receiving the service that you are paying for.
You should also ask the Advisor if he/she is investing in the exact same assets that you are being put into (at High Rock we invest in the exact same assets as our clients and we even produce a quarterly report from an independent compliance service to prove this).
As you may have assessed, I am extremely passionate about the differences between true portfolio management and simple financial advice and I think it is important for everyone to have a full understanding of those differences.
Always happy to discuss that in more detail...
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Scott Tomenson,CIM Managing Partner, Chief Investment Strategist