Our video called “What to Expect from Your Registered Investment Advisor” sets out new items that your advisor must include in client relationship documents you receive when you open an investment account.

Generally, an investment advisor must include anything of interest to a reasonable client.

These include:

  • the possible types of accounts, such as cash, margin, or registered accounts
  • the services your advisor’s firm can provide, such as selling or advising on investments
  • the types of investments your advisor’s firm can provide, such as stocks, bonds, and mutual funds
  • various types of risks, such as market value changes and interest rate changes
  • conflicts of interest between your advisor’s firm and you, such as selling you securities of the advisor’s firm or in which the advisor or firm has an interest
  • fees and other charges you will pay for operating your account, such as operating and transaction charges (Operating charges would include administration fees, management fees, and transfer fees. Transaction charges would include commissions, performance fees, and redemption fees.)

 

If you have any questions about the information in your relationship disclosure document, talk to your advisor until you understand the information you have received.

We are blogging about each video in this special series. Watch for these posts, and follow us on Twitter or Facebook for similar updates.

If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using BCSC’s online complaint form.

Suggested Reading

Madoff on Madoff: Wealthy clients help his stock rise on Wall Street

2009: The year of the Ponzi

Private Company Investments – Questions to Consider

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