Submitted by nsscadmin on
When you’re choosing your investment adviser it should not be as simple as picking the first name that comes up in a Google search. You shouldn’t necessarily go with the first adviser you meet with either. We’re not saying that first adviser won’t be the right one, but don’t automatically go with the first one without doing your due diligence.
Remember, this person is going to be guiding your investment decisions and hopefully helping you to build wealth to go toward a house, education, retirement, or whatever your investment goals may be. You want to be assured that you’re comfortable working with this person and you trust them.
If you’re going into your first meeting with a prospective adviser here are some of the questions you need to ask:
1. Are they registered?
Anyone selling or advising on securities in Nova Scotia must be registered with a securities regulator. Make sure you ask this question and then check their answer at www.aretheyregistered.ca
2. What are they registered to sell?
We’ve gone over the categories of registration before. Under the categories of registration, advisers are registered to advise and sell certain products. Make sure your adviser is registered to sell you the products you are interested in.
3. What is their education and professional experience?
Knowing what financial education your adviser has can give you peace of mind that they are educated enough to give you financial advice. Knowing their professional experience can do the same. How long have they been in the business? How long have they worked for their current firm?
4. How are they paid?
You’d be surprised how many investors have no idea how, or how much their adviser is paid. New rules brought in a few years ago make it so most fees must be outlined on your financial statements, but you should know this information in advance of purchasing any securities. If a prospective adviser can’t answer how their paid, or can’t do so easily, they may not be the right adviser for you.
5. How often will I receive account information and how often will you review my portfolio?
Before giving an adviser your business make sure you find out the level of service they will be able to offer you. This includes how often they send you financial statements and how often they will be able to meet with you. Make sure you declare your expectations going into the arrangement so you’re not disappointed later.
These aren’t the only questions you need to ask, but they are five that you should ask to have the necessary information to help you choose the right adviser. For more help see our online Working With an Adviser Guide and the CSA’s Check Before You Invest Checklist.