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.
Here are the facts on how advisers are regulated by the Nova Scotia Securities Commission. In our statues and laws, you will find the term is spelled, “Adviser”. As mentioned, we don’t regulate based on the spelling. Instead, we regulate based on the conduct and actions of a person.
If someone is engaged in the business of trading or advising on securities in Nova Scotia, then they are required to be registered with the Commission and they are required to comply with securities law. It does not matter if they call themselves an “adviser” or an “advisor,”, they must comply with the law.
In a previous post we looked at “What is a registered adviser,” which you can review by clicking the link. We also recommend you review our post on “How do I find an adviser that’s right for me?”
There are regulations a registered adviser must follow that may also help anyone confused. All advisers who are registered in Nova Scotia are required to give unbiased advice insofar as they must give advice that is appropriate for the client. Advisers must understand their clients’ investment needs and goals as well as know about the investments being recommended, and whether they are suitable for each individual client. As we previously outlined in our post on finding an adviser that is right for you, there are expectations all advisers should meet:
• make clear and specific recommendations
• explain the reasons for the recommendations
• point out the strengths and weaknesses
• outline the risks involved
At the same time an adviser cannot and should never state they can:
• predict the performance of the markets with certainty
• recommend investments that are always profitable
• act on vague or general instructions to buy or sell investments
• meet unrealistic goals or expectations of profit