Survey says: many advisers lack integrity - MoneySense

Survey says: many advisers lack integrity

Canadian CFAs rank advisers poorly on ethics; complaints against advisers at record levels


A recent survey of Canadian chartered financial analysts indicates a strong confidence in the Canadian financial system — but also a skepticism about the ethical integrity of our financial advisers, who ranked only slightly above hedge fund managers for “integrity.”

“Most advisers are not out for the client’s best interest; instead they are out for their own interests,” one /investment consultant is quoted as saying.

The survey comes on the heels of another report indicating that complaints by Canadians against investment advisers are at record highs. Douglas Melville, Canada’s ombudsman for banking services and investments, says that complaints may be partly driven by global economic troubles. Still, the ombudsman’s office awarded compensation to 28% of those who filed complaints in 2009.