What’s the Price of Advice?

What’s the Price of Advice?

The Canadian government has made sweeping changes in the securities industry to provide greater transparency and disclosure to Canadian investors.

Alan Cleaver Personal finance

One of the changes is that by 2016 it will be clearly laid out on investor’s statements the income that is received by their investment company and advisor for managing the investor’s money i.e. the cost to the investor.  It will also lay out investor’s performance in dollar amounts, by type of income and show the annualized percentage return for the client’s account. The return will include dividends and interest in addition to capital gains and losses, be calculated net of charges, and use a money-weighted method generally accepted in the securities industry. When the requirement is fully implemented, annualized returns will be provided for the 12 months, three years, five years and 10 years proceeding the date at which the returns are calculated, and since the opening of the account.

Transparency is always a good thing.  It was unclear to many investors how advisors were compensated and what the cost of advice was.  Now it will be. The costs aren’t changing; they will just be clear.  That is good news!


Photo Credit: flickr.com/alancleaver

This article was prepared solely by Laura Chanin who is a registered representative of HollisWealthTM (a division of Scotia Capital Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada). The views and opinions, including any recommendations, expressed in this article are those of Laura Chanin alone and not those of HollisWealth.

TM Trademark of The Bank of Nova Scotia, used under license.