What Clients Are Being Told About Choosing And Working With Investment Advisors

On January 18, 2010 the British Columbia Securities Commission issued an expanded and updated guide for investors regarding how to work with their investment advisors. This document provides useful insights into the client perspective on the client and advisor relationship.

The guide provides some good general advice for investors about identifying their own objectives and choosing the type of advisory service (for example, discount, full service or financial planning) which will be most appropriate. Unfortunately, the guide does not include a significant discussion of risk or how an investor can avoid developing unrealistic expectations.

The guide has a section devoted to choosing an investment advisor. Much of the advice is focused upon confirming that any potential advisor is registered and does not have a history of serious disciplinary problems. There is relatively little advice given regarding how to gain an understanding of the potential investment advisor's