1. Advisor Compensation Issues
Panel Discussion
Advocis Continuing Education
Disclaimer
. This seminar is for educational purposes only. It should not be
construed as legal advice by Advocis.
. The presentations are of a technical nature designed for financial
advisors and planners, and delivered by professionals. The
printed material received should not be redistributed.
. The advice given or comments made during this presentation by
the topic experts does not bind Advocis to the validity of the
content.
Panel Moderator
Jonathan Chevreau
BSc, MA
Editor,
Moneysense magazine

2. Ed Skwarek, BA
LL.B., LL.M.
VP, Regulatory and
Public Affairs
Advocis
Ken Kivenko, P.Eng
Chair Advisory
Committee
Small Investor Protection
Centre
Jonathan Bishop, MA
Research Analyst
Public Interest Advocacy
Centre

3. Robert McCullagh,
CFP, CLU,CH.FC.,CHS
Benefit Planners Inc
UK Commission Ban
Investable Assets
Financial Advice
<50,000 £
None
50,000 – 100,000 £
Less
Proficiency requirements for Mutual Funds currently
too low

4. Public Interest Advocacy Centre (PIAC)
• Made aware of different comp models and,
• Have choice
CRM I / CRM II – Fee Disclosure
• Greater clarity for clients
• Increased client / advisor trust
Consider a negotiated fee with client – with a cap?

5. Embedded Comp provides affordable access to advice
Canadians working with advisors earn 3 times more
Unbundling of fees will increase cost of advice
Huge confusion in terminology between fee for
service and fee only
Preet Banerjee Globe and Mail columnist:
When mutual funds are a good idea
Moneysense.ca

6. If we follow regulatory trends abroad and start
removing choice from the system, clients will not be
able to get the advice that they need.
Regulators need to listen to clients and advisors
Question
• How can fees be lowered for consumers so
Canadians don’t pay the highest fees in the world?

7. Question
• You have a comprehensive fee discussion with your
client, do you believe other advisors provide that
comprehensive review? Is a lot of the problem due
to a reluctance by advisors to discuss fees frankly
with their clients?
Question
• There was no requirement to provide any ongoing
advice while receiving a trailing commission. What
advice do consumers get if they have $10,000 in
mutual funds with an advisor slash dealer?
Question
• The greatest impetus for change is a free,
competitive market. Do you believe clients have a
right to choose from a diverse market, advisors have
a right to offer their services to a free market and
product manufacturers have a right to compete on a
free market?

8. Advisor Compensation Issues
Panel Discussion