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41 | Thursday, December 15, 2016 | OAKVILLE BEAVER | www.insideHALTON.com Should financial advisers be held to a higher standard? he ongoing conversation about how investors should be treated is an embar rassment to the investment industry; The issue is centered on the rights of inves tors. How should people who invest their life savings be treated by their investment advisers? On one side, there is the regulatory body that proposes hnancial advisers act in the "best inter est" of their clients. On the other side, the large companies that make millions of dollars in their wealth management divisions complain a "best interest" standard is not possible. In the middle of this debate, and in most cases oblivious that the conversation continues, is the investor. The Ontario Securities Commission has proposed a new rule that would require hnancial advisers to better serve their clients. Specihcally, all recommendations made by advisers must be in the "best interest" of their clients. Currently, high standard of care is not re quired. At present, advisers are only required to make "suitable" investment recommendations. The two different standards might sound simi lar, however, they are not. A "suitable" investment recommendation in my opinion is a very lame standard. It just means a recommendation is not unsuitable. T Dollars & Sense Peter Watson Guest Contributor That allows a lot of leeway for an adviser to make any number of investment recommenda tions. The gold-standard of care from an adviser is when they put their client's interests hrst. That is very simple; do what is best for your client or suffer the consequences. There was a roundtable discussion in Toronto where industry participants voiced their opin ions. One opinion came from the head of the wealth management compliance department of one of the largest Canadian banks. He said it would be unclear how hnancial hrms could implement new regulatory stan dards. He went on to say these new "best in terest" standards could jeopardize the existing model of providing hnancial advice. Respectfully, and in my opinion, I think that comment is totally absurd. Canada's big banks pride themselves on being global leaders and they have had success in operating their busi nesses in an increasingly complex, global hnancial marketplace. Implementing a "best interest" standard is not a life-changing event for the hnancial services in dustry. Doctors, lawyers, accountants, and many other professions have a hduciary obligation to provide what is best for their clients and are able to deliver that high standard. When required, the professional organizations that govern their members have been able to discipline members who don't conform. In summary, clients of those professions have the comfort of knowing that their best interests will be served. This lopsided conversation about whether de ciding for once and for all to do what is right for the client has gone on far too long. It is time for the regulatory bodies that control the hnancial services industry to increase the standard of care for investor clients. My opinion is to end this endless debate and have the regulatory bodies mandate a "best in terest" standard to protect individual investors. -- Submitted by Peter Watson of Peter Watson Investments and Aligned Capital Partners Inc, MBA, CFP R.FP, CIM, FCSI, Certified Financial Planner w w w .edw ardjones.com H o w m u c h w ill y o u n e e d L e t 's t a lk . t o r e t ir e ? M a rc N u tfo rd - F in a n cia l A d v is o r 2 3 8 7 Tra fa lga r R o a d , U n it E2, O a k ville , O N L6H 6K7 9 0 5 -8 4 4 -4 0 4 3 - w w w .e d w a rd jo n e s .c o m / m a rc -n u tfo rd Hotel,& BoutiduelBecllBath Linens OjJTLET'OPENTOjTHEPUBLIC UPTO E d w a r d jo n e s MAKING SENSE OF INVESTING M e m b e r - C a n a d ia n In v e s t o r P r o te c t io n F u n d 60%OFF OM LAND'HOSPITALITY Under $50* T O R O N T O 2905 ArgentiaTEd Unit 7, M ississa u g a (Just east ofWinston Churchill Blvd. & South of Hwy. 401) OUTLET STORE HOURS MON-FRI 10 am to 6 pm SAT 11 am to 5 pm MARKET FOOD +DRINK 9 0 5 -8 5 8 -3 4 5 6 31 - APRIL 2,2017 TORONTO CONGRESS CENTRE GET YOUR HOLIDAY GIFTS TODAY! 30% OFF iODE: HOLIDAY'LEARN ABOUT HEALTHY FOOD OPTIONS, EXPLORE OUR FOOD TRUCKALLEY & CELEBRATE CANADAS 150TH! TO foodanddrinkm arket.com @ TO foodanddrinkm arket