Canada's flawed financial advice industry

Commissions and conflicting interests persist - when are we going to get the value we deserve?

Ruth Saldanha 3 October, 2019 | 1:39AM

 

 

Ruth Saldanha: One could make the argument that the Canadian finance advice industry is broken, or at least flawed. A recent research paper found that advisors typically invest personally as they advise their clients, which means they trade frequently, chase returns, prefer expensive actively managed funds and under-diversify. And this questionable advice isn't cheap. Our recent global investor experience study found that in the case of commission-based advice 70% of funds sold had an asset weighted median of over 2%, which actually is an improvement. So, where do we go from here? Dan Hallett, VP and Principal at HighView Financial Group is here with us today to discuss it.

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Ruth Saldanha

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca