NSSC Blog: Before You Invest

Question of the week: Does the spelling of adviser matter?

Submitted by nsscadmin on

We’ve had the “adviser” vs. “advisor” question come up more than a few times recently. It has likely arisen from recent reporting that one has a fiduciary duty to their clients and the other does not.  To correct this misunderstanding, it is important to note that the Nova Scotia Securities Commission regulates conduct and activities of persons or firms in the business of trading or advising on securities no matter how they spell their title.

Question of the week: What are swaps

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A swap is a form of derivative in which two parties agree to exchange payments. Almost anything can constitute a financial instrument, but swaps most commonly involve cash flows based on an agreed upon or notional amount. The notional amount specifies the principal dollar amount which determines the amounts of actual payments required under the swap. This will become clearer in an upcoming swaps example.

Protecting older persons from fraud on World Elder Abuse Awareness Day

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First observed by the United Nations in 2012, World Elder Abuse Awareness Day recognizes that nearly every country across the globe will see a substantial growth in the number of older persons in the next decade. With the population of older persons increasing it unfortunately also leads to an increase in the amount of elder abuse.

Question of the week: What are Futures Contracts and Forward Contracts?

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Futures contracts and Forward contracts are forms of derivatives. In case you missed our previous post of derivatives, a derivative is contract between two or more parties with the value of the contract being tied to an underlying interest. An underlying interest can include stocks, bonds, commodities, currencies, interest rates, an index or the weather.

Futures Contract:

Question of the week: What is a derivative?

Submitted by nsscadmin on

The Nova Scotia Securities Commission is responsible for the regulation of securities and of derivatives.  A derivative is contract between two or more parties with the value of the contract being tied to an underlying interest. An underlying interest can include stocks, bonds, commodities, currencies, interest rates, an index or the weather.

Question of the week: Can you explain mutual funds fees?

Submitted by nsscadmin on

After discussing how advisers are paid last week, we had a similar question come up regarding mutual funds fees. Mutual funds are a very popular investment vehicle which we discussed in a previous post. We briefly looked at mutual funds fees in the post, but investors were still left with some questions, especially after we looked at paying advisers last week.  So, let’s talk about mutual fund fees.

Question of the week: How is my adviser paid?

Submitted by nsscadmin on

If you have an adviser you’re paying him or her in some way for the services they provide to you. You may not personally hand them cash or see the money come out of your account, but it’s happening nonetheless. Since that’s the case, how does your adviser get paid? There are a number of different ways and you really should know which method so that you understand how much you are paying for your investments.

Advisers are typically paid in at least one of the following ways…

Question of the week: What is a registered adviser?

Submitted by nsscadmin on

When the Nova Scotia Securities Commission is delivering investor education presentations, seminars or tutorials one of the first things were always tell people is to check the registration of their investment adviser. We’ve been getting a few questions about advisers lately, including what exactly is registration? We’re always telling you to check registration, but what does it mean for an adviser to be registered?

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