Sunday, May 31, 2015

Ethics and trust in financial Services: John Bogle

John  delivered a keynote speech before the Public-Private Partnership Symposium at Georgetown University School of Law on October 31, 2014. Titled “Values, Ethics, and Structure in Finance,” the speech discusses the importance of getting the right structure of business model and incentives in order to have a financial system that serves the needs of clients first. “Values, Ethics, and Structure in Finance,” October 31, 2014, Georgetown University School of Law .

Friday, May 29, 2015

Research on Advisor Fiduciary duty

  • Ditching the Securities Blanket - Revisiting the Financial Advisor-Client Fiduciary Obligation in Canadian Law by Mark Donald  The author's conclusion : " While obviously well-intentioned, many supporters of a blanket statutory fiduciary/best interest standard apparently view this equitable legal construct as a sort of panacea. This position ignores the significant practical legal perils that such a statutory creation would create, and puts investor advocates on an unhelpful, and arguably unavoidable collision course with IAs and the securities defence bar.The better way forward would be for all parties to consider the power of targeted, systemic regulatory changes to the financial services industry, and accept that wholesale revolution to the client-advisor relationship is not a precondition to developing a fairer and more efficient financial services industry. Such an approach could have profound, positive results, while avoiding the theoretical debates that make a fiduciary/best interest solution so elusive.".  Read it here 

Thursday, May 14, 2015

Fed up with bank fees and bank exploitation?

If the latest round of bank fee increases finally got you upset enough to take action , read this article.
Some apathetic folks are simply taking the approach " If you can't beat em, buy em" and are investing in bank stocks. Over the years the fees they collect from the docile can mean real gains and dividends for shareholders. In any event, there's a feel good emotion thaat some of the client gouging is coming back to you.

Case study : The reality of Investor Protection in Canada

This case will open your eyes . The sad reality is when you invest you have to be constantly on guard. There are many forces working against you and too few forces working to protect you from Bay Street shenanigans. Be aware that your “ advisor” is not required to act in your Best interests .

He/she may also be motivated by sales commissions to actually place you and your retirement  in harm’s way.  CAVEAT EMPTOR prevails in Canada’s “ Wealth Management industry “, an industry creating wealth but not necessarily for you.

Sunday, May 3, 2015

Equity Crowdfunding poses significant risks for main Street

Equity Crowdfunding is coming whether we like it or not - you need to be ready.Companies raising capital on regulated, public stock markets must jump through all sorts of disclosure hoops intended to protect the public from fraud. When they raise capital in private markets, often for early-stage companies, they may generally tap only "accredited" investors--those who can prove they are wealthy and sophisticated enough to participate in what are inherently risky ventures.
What if you could remove both constraints, allowing issuers to offer securities to the general public without the rigorous disclosures required when "going public"? That's Equity Crowdfunding .
Read more here