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Here is a quote directly from the organization that develops, promotes, and enforces professional standards in financial planning, The Financial Planning Standards Council:
Financial planning is not regulated in most Canadian provinces. This means that anyone can call themselves a "financial planner". However, not everyone who refers to themselves as a planner is indeed qualified; many so-called financial planners are licensed to sell products but have no financial planning training or expertise.
In the absence of government regulation, consumers must ensure their planner is indeed trained, certified, and held accountable in providing professional financial planning.
Allowing anyone to hold themselves out as a financial planner leaves Canadians confused, and at risk. Half of Canadians believe financial planners are regulated however, they are not. The need for unbiased financial advice has never been more urgent.
While many financial planners voluntarily seek out rigorous education and certifications, some people who call themselves financial planners don’t have the skills or qualifications to provide financial planning and are not accountable to any oversight body or subject to government regulations. This is a pretty scary reality, especially when you consider the importance of finances in one’s life, and that money and financial issues are one of the single biggest sources of stress for most people.
Yet, few consumers ever question what sort of education or experience their advisors possess, or the professional standards their advisors are held to. Most people just assume that their financial advisors have their best interests at heart and that it is generally NOT the case. Can anyone call themselves a surgeon, accountant, or dentist? No. Why then, is an industry so critical to your survival so lightly regulated?
Canada’s regulators must require a fiduciary standard. They currently do not.
A fiduciary duty is defined as a legal duty to act solely in another party’s best interests. Fiduciaries have a duty to avoid conflicts of interest between themselves and their principals, and may not profit from their relationship with a principal without their express consent. The concept of fiduciary duty has been in society for centuries and is central to the English common law system, as well as modern securities regulation.
Currently, financial advisors in Canada are held to a “suitability” standard that does not require them to act in the best interests of their clients, instead, they must simply ensure that any investment recommendations are suitable given a client’s risk tolerance and return objectives.
The implementation of a fiduciary standard would have widespread implications for the financial industry, as advisors would be required to ensure that all recommendations were in the best interest of their clients, including the minimization of all fees and expenses, which is typically at odds with the advisor’s goal of maximizing revenue from a client account. This would involve a shift towards the client’s goals and objectives ahead of the advisors. Buyer Beware!!
You might be asking yourself, “Where do I find the right Financial Consultant near me who charges a flat fee and will treat me fairly?” “Where can I find an Advisor who can create an Integrated Aligned Overarching Strategy?” “Where can I find an advisor who will only invest my money in proven passive investments? We suggest that you interview several. You’ll quickly learn that there are very few who are fiduciaries, believe in passive investing, and have a process to create an Integrated Aligned Overarching Strategy. When you do find the right advisor, you’ll be able to relax in the knowledge that you are in the right hands and that your financial future is secure. Feel free to reach out to me with your questions. I’m committed to investor education.
If you are ready to get really serious about living your Ideal Life and getting your financial house in perfect order, please call me at 403-543-7226 or email me at dean@ideal-life-experience.ca to get started. I look forward to working with you to reach all of your goals.
Dean Kendall is a Financial Organizer in Calgary, handling all of the financial affairs for a select group of clients who value unbiased quality advice for one simple flat fee.
His book - Stop Paying Hidden Investment Fees! Click here for more information https://www.ideallifeexperience.com/Stop-Paying-Hidden-Investment-Fees
Newest book - Becoming The Champion of Your Dreams: How to Set and Achieve Your Most Important Goals Click here for more information. https://www.ideallifeexperience.com/Becoming-the-Champion-of-Your-Dreams
In addition, Dean is a 3X Canadian National # 1 Amateur, a 5X Canadian National #1 Professional BMX rider, downhill mountain biker, and an avid snowboarder. He is an expert at winning. Let him show you how to win the money game. You can reach Dean at dean@ideal-life-experience.ca or Phone 403-543 -7226
Copyright 2008 – 2022 by Dean Kendall. All rights reserved. 403-543-7226 dean@ideal-life-experience.ca