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www.insideHALTON.com | OAKVILLE BEAVER | Thursday, November 20, 2014 | 22 I Landmark decision against misleading manipulation of information t is unethical for nancial sales representatives to mislead clients with the irrelevant, past performance returns on mutual funds. Last week, the Supreme Court of Canada made a landmark decision against the manipulation of information. This is still unethical but now it is also illegal. Here is one example of how a salesperson may gain a sales commission by presenting information to an investor that may be mis- EXCLUSIVE 1 DAY ONLY! SATURDAY, NOVEMBER 22 Members Plus this Exclusive Members' Offer! Huge special selection! Our Reg. $13 & $20 m leading: You are shown the poor past performance of your mutual funds where the obvious conclusion is to make a change to improve returns. Then you see a list of funds that have performed much better over the same time period. The recommendation is to sell your funds and purchase those from the "better performance" list. If this action is motivated so a salesperson can make a sale and be paid a commission, then the entire mutual fund analysis is misleading. Dollars & Sense Peter Watson Guest Contributor Save Arctic Fleece Solids & Prints 150cm 1 Day Members' Price $ 5m 1 yr. membership (valid til Aug.31/15) only $25 + HST Seniors (65+), students & renewals, only $20 + HST And opt out of paper and we'll email you a $5 coupon! Not a Member? Join & save more! Membership Pays! off our reg. prices on almost EVERYTHING! MISSISSAUGA: 3015 WINSTON CHURCHILL BLVD. (N.W. side @ Dundas) 905-828-9966 BURLINGTON: 3515 FAIRVIEW ST. 905-639-2516 Follow us on Facebook and Twitter! Visit us at www.fabricland.ca Offer valid November 22/14 for valid Members only,onin-stockmerchandise,excludingspecial purchases,promotionalitems,SignatureStylesTM and yarn. Not valid with any other discounts. Disclaimer about past performance This is an extremely strong statement and, respectfully, does not speak well of any person in the nancial services industry who follows such a practice. We will support this with evidence. You be the judge and come to your own conclusion. The entire argument for using past mutual fund returns to predict future returns is incorrect. That is why a regulatory requirement speci es any mutual fund advertisement must include a disclaimer about past performance not being used to estimate future returns. The easiest way to see compelling evidence that proves past performance does not have any prediction of future performance is to go online to Standard & Poor's Indices Versus Active (SPIVA). Standard and Poor's information clearly shows the mutual fund managers' success cannot be predicted and that their performance is poor when compared with the markets in which they invest. The evidence is credible, de nitive and persistent over time. The Standard and Poor's results based on thousands and thousands of managers around the world are also supported by academic research. Their returns cannot be predicted. Last week, the Supreme Court together with seven judges unanimously ruled that businesses must act in good faith. As one Toronto lawyer said, "If you are going to lie, it's going to cost you." Supreme Court Justice Thomas Cromwell wrote the following in the court decision: "It is a simple requirement not to lie or mislead the party about one's contractual performance." see `Unethical on p.24 NEW LOCATION SALE ENDS THIS SUNDAY, NOVEMBER 23 RD WE'VE MOVED TO VAUGHAN FREE PARKING . RD RD ERFO RUTH VAUGHAN MILLS warehouse sale 3 9 TH A N N U A L FINAL DAYS! E SAV TO UP . JANE ST IT ONLY HAPPENS ONCE A YEAR! * TUESDAY THURSDAY HWY 400 CR ED ITV IEW 90% D. WAREHOUSE SALE HOURS 10 Am - 9 pm FRIDAY 10 Am - 9 pm 10 Am - 9 pm SATURDAY SUNDAY 10 Am - 9 pm 10 Am - 6 pm 10 Am - 6 pm NEW SALE LOCATION 111 CREDITVIEW ROAD, VAUGHAN, ON TABLEWARE . KITCHENWARE . HOME D É COR & SO MUCH MORE THE BIGGEST. THE BEST. THE ORIGINAL. *Save up to 90% off Ntl. Sugg. Reg. Price or Comparable Value. We reserve the right to limit quantities. Personal shopping only. Cash, Debit, Visa, Mastercard & Amex accepted. No cheques or credit notes. Items are subject to stock availability. All sales final. E. & O.E PLEASE NOTE: FOR SAFETY REASONS, STROLLERS AND CAR SEATS CANNOT BE ACCOMMODATED. WESTO N RD. TER EC AR DR . WEDNESDAY CLOSED MONDAYS LAN GSTA FF R NEW ITEMS EVERY DAY SIGN UP NOW! DAILY DEALS RD . W W W. W I L L I A M A S H L E Y. C O M