Last week, I posted news about the UK banning financial advisers from collecting commissions on mutual funds they sell, effective 2012. Apparently other countries like Australia and the US are also taking similar action.
So what’s up in Canada? A couple of articles in the Globe & Mail raise this issue. In the first, “Canada unlikely to see a ban on fund commissions”, the mutual fund industry says commissions are not a problem because everything is disclosed in the prospectus. If you haven’t read a fund prospectus lately and you have a few hours free (maybe after you’ve done your taxes), try reading this. Keep a magnifying glass handy.
In the second, Rob Carrick is incredulous that the questions of whose interests come first – the client’s or the salesperson’s – is even a question? No, this is not an April Fool’s Joke but it could be.
Ok – here’s a brief message from our sponsor: As a portfolio manager, archerETF has a FIDUCIARY duty to put clients interests ahead of its own. archerETF charges a fee – not a commission – for services, much like a lawyer or an accountant. The fee is straight-forward and doesn’t require hours with a magnifying glass.
Thanks for reading.
Till next time,
01 April 2010