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Ontario|Investments & Securities
The Stock Market
274 What is an Investment Advisor and how do you choose one? Investment Advisors, also referred to as salespersons, brokers or dealers, are people who are trained to provide investment advice and buy and sell securities. To be registered as an Investment Advisor, the individual must be at least 18 years old, must have successfully completed the Canadian Securities Course and the Conduct and Practices Handbook Course offered by the Canadian Securities Institute. The individual must then complete an in-house 90 day Training Program, during which client contact is not permitted.
After those 3 elements are completed, the individual must become registered as an Investment Advisor with the Investment Dealers Association of Canada or the relevant stock exchange. Following registration, the Investment Advisor must operate under supervision for 6 months and complete an additional course within 30 months of registration.
- What an Investment Advisor can doAn Investment Advisor can help you manage your investment portfolio. Investment Advisors provide investment advice and guidance to clients by accessing a client's needs, and recommending the appropriate mix of investment options for that client, including bonds, mutual funds, and stocks. The recommendations made by the Investment Advisor must be appropriate for the client. This is known in the securities industry as "suitability" or the "Know Your Client Rule". It is important to discuss your investment objectives with your advisor, so that he or she can invest your money in investments that you are comfortable with.
You can set limits on the level of risk you are willing to accept and on the types of investments you are prepared to make. All investments come with some risk, but your Investment Advisor can structure your portfolio so that it matches your comfort level and investment objectives.
Investment Advisors are usually paid by taking a commission when they buy or sell securities on your behalf. An Investment Advisor cannot buy or sell a security in your account without consulting you, unless you grant the firm permission in writing. Also, you must receive a confirmation of all trades made in your account as well as regular account statements.