Is it unethical to be incompetent?

The Canadian financial advice industry needs higher standards and education requirements

Yan Barcelo 21 October, 2019 | 1:03AM

Bad apple

A recent American study on the Canadian advisory industry claims that advisors harbour misguided beliefs – and advise their clients accordingly. What does the industry think? And what can be done about it?

Let’s recap the main arguments of the study, titled ‘The Misguided Beliefs of Financial Advisors’. The basic problem isn’t a conflict of interest linked to embedded trailers fees, but rather wrong beliefs and practices, including frequent trading, return chasing, favouring expensive and actively managed funds with high past returns, and under-diversification.

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.