in si de ha lto n. co m O ak vi lle B ea ve r | T hu rs da y, D ec em be r 13 ,2 01 8 | 12 Factory Shoe Outlet 2394 Fairview St. Burlington, 905-632-9688 A little rain, sleet, snow and slush must fall. BereadywithBlundstoneboots. Oiled leather, sealed to the elements, keeps feet cosy everywhere life takes you. #1391 Winter Chisel Toe Rustic Brown $259.95$259.95 BLUNDSTONE.CA BLUNDSTONE.CA Into every life. There is trouble brew- ing on how the investment industry collects mutual fund fees from some indi- vidual investors. Approximately $25 bil- lion of mutual funds are owned by do-it-yourself in- vestors. These are inves- tors who have decided to forgo professional finan- cial advice and make their own investment decisions. Many do this to avoid pay- ing fees to a financial advis- er. That is their option. Sounds pretty straight- forward. As it turns out, it is not straightforward. There have been a few changes in the investment industry toward better dis- closure of investment fees paid. Now, do-it-yourself investors are suddenly learning they have been paying for financial advice they have not received. When a do-it-yourself investor has a discount brokerage account, regula- tion requires that no ad- vice be given. In September 2018, CBC Go Public report- ed how a fairly sophisticat- ed investor suddenly real- ized he paid over $60,000 in embedded commissions or trailers for advice he did not receive. Just to make this per- fectly clear: because he had a discount brokerage ac- count, he was not able to re- ceive financial advice from that broker nor had he re- quested financial advice. Nonetheless he was charged fees for financial advice. A lawyer interviewed for the Go Public report es- timated that Canadian in- vestors have paid tens of millions of dollars in fees for financial advice they didn't receive. Regarding my state- ment of trouble brewing, there are two things that will be interesting to watch. First, the proposed class-action lawsuits against well-known asset management companies, regarding these fees. Second, in September 2018, the Canadian Securi- ties Administrators pub- lished a proposal to ban trailer fees paid to discount brokerages. The industry has three months to re- spond. In the court of public opinion, charging tens of millions of dollars for ad- vice not given is not only wrong, it is immoral. Peter Watson is an agent of Aligned Capital Partners Inc. ACPI is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. The opinions expressed are those of the author and not necessarily those of ACPI. Peter Watson provides wealth management servic- es through Peter Watson Investment. OPINION DIY INVESTORS CHARGED FEES FOR ADVICE NOT RECEIVED CHARGING MILLIONS FOR ADVICE NOT GIVEN 'IS NOT ONLY WRONG, IT IS IMMORAL,' SAYS WATSON PETER WATSON Column 1200 Speers Rd., Unit 12, Oakville, Ont. L6L 2X4 (905) 845 - 1408 | Fax (905) 845 - 5931 | ricky@rickywong.ca Ricky Wong CPA, CA, MBA, B. Eng Ricky WongRicky W DIAMONDDIDIDIDIDIAMAMAMAMAMONONDIAMONDONDIAMONDONDIAMONDONDIAMONDONDIAMONDONDIAMONDONONONONONDDD DIAMONDDIDIDIDIDIAMAMAMAMAMONONONONONONONDDD Voted BestAccountant by Oakville Beaver Readers for 11 ConsecutiveYears For more information please check our website www.rickywong.ca •Accounting •Auditing • Taxation TOMORROW! OPEN 8AM! TOMORROW, FRI. 8AM! *We'd love to include advertised product but we can't. See store for details. VIP SALE CUSTOMER APPRECIATION ® Registered trademark of The Bank of Nova Scotia, used under licence. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. For more information visit www.scotiawealthmanagement.com. Blakely Investment Management is a personal trade name of Derek Blakely. Celebrating 25 years We are pleased to recognize Derek Blakely's 25 years with ScotiaWealth Management. Derek is the founder and lead strategist of Blakely Investment Management, an experienced team of investment professionals who provide an innovative team-based approach to wealth management, dedicated to client service excellence. www.blakelyinvestmentmanagement.com Derek Blakely Portfolio Manager ScotiaMcLeod,® a division of Scotia Capital Inc. Please keep our community clean!