Equipping advisors to be better financial advisors


Aside from the incredible surge in GameStop stock prices, a staggering spike in Bitcoin in the past few months – currently at around $ 60,000 – has caught people’s imagination. Individual investors are full of cash and have instant access to online investment platforms. They are eagerly looking for ways to get some of the action. Many get burned for buying high, selling low, and focusing too much on risky assets.

“I think it’s a good time to invest, but invest based on your long-term goals,” said Milum. “Many people may expect double-digit returns all the time, so advisors need to remind them that this is not sustainable.”

The course also comes to a crucial point for the Canadian financial services industry. Given that Customer Faced Reforms (CFRs) will come into effect later this year, advisors are expected to better consider conflicts of interest, product suitability, and knowledge of their customers’ risk tolerances. It is all the more important to collect customer information.

“We didn’t create the course with CFRs in mind, but I think it’s a tremendous addition to the tools that consultants need to prepare,” said Milum. “Have you updated your customers’ goals? Did you ask her what has changed in her financial situation over the past year? Do you really grasp the context in which people make decisions? I think the lessons we share will help the advisors ask the kind of thought-provoking questions that the reforms will make even more important. “

Finance professionals not only have to unlock important information, they also have to become good behavior trainers. For many Canadians, living with COVID-19 may feel like the edge of a knife, putting more customers at risk of making emotional financial decisions. Instead of saving money, they may be looking for online retail therapy, doing unnecessary home renovations, or investing in meme stocks for thrills.


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