How to verify a financial adviser


When looking for a financial advisor, do your due diligence. Here’s how.

Whether or not you feel a twinge of schadenfreude When you hear about another celebrity being defeated by a dodgy financial advisor, it’s important to remember that it can happen to you! And it’s no joke when that’s the case. Money is hard earned, investing takes risks; lose everything because of adviser with gourmet motives can ruin more than your bank account. It can ruin your life. So avoid disaster from the start.

Choose a qualified professional

A financial advisor helps you manage your money, while a financial planner helps you achieve long-term goals like retirement. However, if the advisor does not sell registered funds, stocks or products, they may have little or no training and no certification. The first thing to check is if your advisor is professionally trained and accredited.

Some institutions, such as World Financial Group, operate more like an MLM. While that doesn’t mean they aren’t legit (that’s something you determine for yourself, if you choose such an organization), it does mean that their advisors are trained solely on their product and how they work. sale. Advisors also have quotas to meet, which can lead to a hard sell.

Other counselors get their training through channels such as The Canadian Securities Institute, or by becoming a licensed insurance broker/agent and continuing to branch out from there. These people can join establishments such as banks, insurance companies or investment companies. Some may start their own business and offer advice as a solo agent. Either way, to keep their license, they must complete a certain number of hours of training per year.

If you work with an advisor who sells financial products, make sure they registered on the national list of the Canadian Securities Authority. If you are concerned that the counselor you love may be involved in past or present disciplinary action, you can visit the Investment Industry Regulatory Organization of Canada search for potential cases.

Make sure it’s a good fit

Once you have chosen a qualified professional, whether it is a bank, independent agent, financial company or insurance professional, you must ensure that they are suitable also. Not all personalities will be compatible. If you don’t feel heard or intimidated, walk away. If you think the agent is hard to reach or unresponsive to your questions, consider another agent. Make sure you and your agent have a good rapport and feel they have your best interests at heart.

Testimonials matter

Testimonials about an agent or company will also tell a lot about them. Choose third-party review sites like Google or Yelp to ensure impartiality.

Get the advice you need

Working with a financial advisor can really improve your net worth. Make sure you choose a licensed professional, that you and the advisor have a good relationship, and that clients like them very much.

This story is brought to you by Great West Media Content Studio. It is not written by and does not necessarily reflect the opinions of the editorial team.


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