1) What are your responsibilities as an investor awareness advocacy group?
Our responsibilities are to make Canadians in touch with their rights as investors. People have a right to know about how fees are charged and what an investment advisor’s ulterior motive can be for recommending a certain investment. The public’s general lack of awareness for how their financial advisor is compensated, as well as the general politics of the retail investment industry, is of deep concern to us.
2) In what circumstances should I request an advisor referral?
If you have doubts or questions about the quality and intentions of your current means of financial advice, OCG will grant you a no-obligation meeting with an investment advisor approved by our firm. Keep in mind, OCG’s goal is to give you the tools to make these distinctions. In this matter, the conclusions are yours to draw.
3) What will a meeting do for me?
Meetings as a result of our referrals come at no cost to you and represent an excellent time for you to get a second opinion of your portfolio. As well, even if you choose not to use one of our advisor referrals, the standard, as well as the degree of expectation, you will place on your current means of financial advice will increase volumes, making you a more conscientious investor.
4) How much do these referrals cost?
Referral fees are only inflicted if the prospective client feels that the advisor is the right individual to take care of his or her portfolio and the advisor feels that their practice can be of benefit to the client. Fees are charged to the investment advisor at a fixed rate variable to the size of portfolio transferred over. These fees are paid on account of future fees to be charged to the client. In essence, our roster of advisors take a pay cut to take on Onus educated clients.
5) What factors do you take into consideration when you qualify your advisors?
During the process, we put grades on three main sets:
- intelligence and overall competence
For an idea of the initial information the IA has to present to us to be considered, please check our Investment Advisors link.
6) What guarantees do you give that we will be fully satisfied with your recommended advisor?
Our goal is to educate you. We have gone through a very scrupulous exercise in weeding out these investment advisors, and we strongly encourage you to use the stringent tools that you have learned to decide if our referral is a fit for you.
7) If the state of the retail industry is so bleak, why even hire an investment advisor to manage my money?
While the industry lacks a great deal of transparency, there exist investment advisors that are incredibly hard working and qualified to benefit you. Having a great investment advisor makes a massive amount of difference in your quest to reach your financial goals.
8) Is hiring an investment advisor my only option?
Far from it. In fact, hiring an investment advisor in several circumstances may not be the best route to follow. Financial planners at banks offer many of the same services investment advisors do but with a smaller slew of investment products to choose from (only their bank-owned products). Furthermore, an individual with self-discipline and time for research can benefit greatly from using a discount brokerage where the fees are significantly lower.