Behavioural finance Guide : Vanguard

A must read for every retail investor. Explains how emotions can impair investment decisions.Written in plain language. Read the Guide

PriceWaterhouse Coopers Report on the Canadian advice Industry

The Report Sound Advice :INSIGHTS INTO CANADA’S FINANCIAL ADVICE INDUSTRY

A PwC study on Canadian small and medium-sized businesses  providing financial advice (  July 2014 ) was sponsored and funded by the lobbyist ADVOCIS. It comes to the same conclusion as ADVOCIS - any dramatic regulatory reforms will reduce the number of  advisors and small investors will have less access to advice. The document contains numerous references but oddly none from investor advocates FAIR, Kenmar Associates or SIPA, The core issue of best interests is not in our view dealt with .Take a read and form your own opinion Read the paper here

PriceWaterhouseCoopers Report on Cdn. Advice industry

OPEN LETTER to Regulators on Protection of Senior Investors

Article lists our recommendations for enhanced regulatory actions to protect elderly investors.Given the rapid growth of the seniors population , we are attempting to inspire a sense of urgency for regulatory reforms.Read the OPEN LETTER

The sorry state of investor Complaint handling in Canada

Investor complaint handling in Canada is a mess and the loser is the average investor.This article summarizes what needs to be fixed and offers practical suggestions for improvements. Read the full article 

The Three Dimensions of Risk

This article on risk connects all the dots: Risk assessment , Risk Capacity and the Need for Risk. Respected Blogger Jean Lesperance does an excellent job of explaining the relationships. This is an article well worth reading.   Read the full article 

Market Structures and Systemic Risks of ETF's

Crisis experience has shown that as the financial intermediation chain lengthens, it becomes complicated to assess the risks of financial products due to a lack of transparency as to how risks are managed at different levels of the intermediation chain. Exchange-traded funds, which have become popular among investors seeking exposure to a diversified portfolio of assets, share this characteristic, especially when their returns are replicated using derivative products. As the volume of such products grows, such replication strategies can lead to a build-up of systemic risks in the financial system. This article examines the operational frameworks of exchange-traded funds and identifies potential channels through which risks to financial stability can materialise. Read the full paper

IIAC Report on Seniors

The report identifies why it is important for investment dealers and advisors to remain vigilant when dealing with their senior clients. These factors include:

 With few exceptions, seniors have limited ability to replenish capital losses through future income from other sources;

 Extra caution needs to be exercised when dealing with seniors engaged in higher risk investments or strategies, or who deplete capital through withdrawals that exceed returns;

 Unrealistic client expectations for investment income which is inconsistent with a low risk tolerance;

 Senior clients’ fears and uncertainty about their future financial situation and life circumstances can be strong behavioural influences in their investment activities; and

 Seniors are more susceptible to physical (e.g. hearing, vision) and cognitive (e.g. memory, context) impairments which need to be accommodated.

Read the full article

Archived Articles since 2005

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Google migrated their "Google Docs" facility to "Google Drive".  Older blog entries containing links to PDFs will no longer work.  To access all of these old documents, use the above link.

Archived News since 2005

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Google migrated their "Google Docs" facility to "Google Drive".  Older blog entries containing links to PDFs will no longer work.  To access all of these old documents, use the above link.

The importance of Ethics on the Formation of a Profession

Abstract: Professionals are not merely persons who make a living by exercising a particular skill or talent. In a deeper sense, they are persons whose specialized knowledge and commitments to service enable them to offer society sound judgment in conditions of uncertainty. Many of the benefits of modern life are rooted in the contributions of professionals in the areas of medicine, law, engineering, architecture and other traditional professions. At the same time the richness and complexity of modern life require that other occupations become professional. This is especially true in areas related to the management of organizations and financial assets, where new professionals are emerging. However, the freedom that professionals require in order to be able to exercise their judgment well and effectively depends upon establishing a high level of trust. In turn, trust cannot be established without a manifest commitment to ethics on the part of the professional. We will explore these connections and the demands of ethics upon finance professionals The Importance of Ethics on the Formation of a Profession