Choose Your Financial Adviser Wisely This RRSP Season

N.S. SECURITIES COMMISSION--Choose Your Financial Adviser Wisely This RRSP Season

The Nova Scotia Securities Commission encourages investors to take the time to find a dependable financial adviser as RRSP deadlines approach.

"A financial adviser can give you sound, objective advice, but it's important that you invest the time to find someone you can openly discuss your investing goals with," said Stephen Sibold, chair of the Canadian Securities Administrators (CSA). "Just as choosing a good doctor is vital to your physical health, so is selecting a good financial adviser for your financial well- being."

Les O'Brien, chair of the Nova Scotia component of CSA, suggests following these tips when looking for a financial professional:

• Know your goals: Understand your financial goals and risk tolerance and honestly communicate them to your adviser. Keep them abreast of changes in your life that may affect your investing circumstances. Under securities laws, advisers are required to understand each client thoroughly so that they can give the best possible advice for the individual situation.
• Know your options: Identify ideal traits that you would like to see in an adviser. Understand what products the adviser is registered to sell (mutual funds? full range of investment products?), and how they are paid (commission? salary?).
• Understand designations: Many advisers use letter designations after their names. This may indicate that the adviser is a member of a particular organization and/or has attained a certain level of education. Not all designations require adherence to a code of ethics. Familiarize yourself with the designations of a prospective adviser before you commit.
• Interview a number of advisers: Screen three to five potential advisers to get an understanding of their experience, service standards, types of clients, etc. This can be as easy as making a few brief phone calls to determine if they are someone who you would like to work with.
• Confirm that the adviser is registered to practice: Contact your provincial securities regulator to verify that the adviser is registered to give investment advice and that they are in good standing (or that there are no disciplinary charges against them).

Mr. O'Brien also reminds Canadians that their advisers must work for them. If the adviser is not doing a good job or meeting agreed expectations, there are always other advisers. A copy of the CSA brochure, Choosing Your Advisers, is available on the CSA website at www.csa-acvm.ca or by contacting the Nova Scotia Securities Commission at 902-424-4625.