As the year end approaches, Canadians who celebrated their 71st during the year are likely in discussion with their advisor or custodian about the mandatory conversion of their Registered Retirement Savings Plan (RRSP) to a Registered Retirement Income Fund (RRIF). The exercise can be an intimidating one for those whose talents and interests lie outside the financial arena, but the event is really quite straightforward.
A recent proposal tabled by the Ontario Securities Commission (OSC) that was designed to hold investment advisers who work for bank-owned investment dealers, mutual fund and insurance companies to a higher standard of client care was recently rejected by the Canada’s provincial securities regulators. The quashed “best-interest standard”—an overarching rule stating that investment advisers must put their clients’ interests first—did succeed in bringing to light many conflicts of interest clients face when dealing with financial advisers. Importantly, independent portfolio managers like Bridgeport Asset Management sit outside this debate because they already owe a “fiduciary duty” to their clients: they are [...]