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
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 investing philosophy. However, there is a
good emphasis on the ability of a potential investment advisor to
explain concepts in an understandable way.
The guide includes a very useful section on how to work with an
investment advisor on an ongoing basis. The guide recommends that
investors keep their advisor informed about changes to financial
situation, investment goals and risk tolerances. It is recommended
that investors read all materials provided and ask questions until
the investor fully understands each investment. It is made clear
that the role of the investment advisor is to give advice and the
investor must then consider that advice and make a decision.
The guide advises investors to keep in touch with their advisors
and to pay attention to statements and other materials received
from an advisor.
The guide also includes a section which assists investors in
collecting information regarding suitability and coming to their
own conclusions regarding suitability.
Overall, the guide may be a useful tool for investors to use in
choosing an investment advisor. The guide will help investors
understand what to expect from their advisors and, although the
guide could be more explicit on this point, the guide may help
reduce the frequency of clients of investment dealers having
unrealistic expectations. Where an investment advisor is having
difficulty managing client expectations it may be worthwhile for
the investment advisor to refer a client to the guide. The guide
can be located on the website of the British Columbia Securities
Commission under the heading of News and Publications.
IIROC AND TAUB SETTLE
Disciplinary proceedings commenced by the IDA and continued by
IIROC against Stephen Taub have come to an end. The allegations
against Mr. Taub dated back to the 1998 to 2003 period, but
enforcement proceedings were delayed by steps taken by Mr. Taub to
challenge the jurisdiction of the IDA on the basis that by the time
the proceedings were undertaken Mr. Taub had left the industry and
was no longer approved by the IDA. In September of 2009 the Ontario
Securities Commission confirmed the continuing jurisdiction of the
IDA (then IIROC) to enforce its rules against individuals who were
under IDA jurisdiction at the time of the alleged infraction. By
notice dated January 27, 2010 IIROC has confirmed that a settlement
has been approved with Mr. Taub. Under the settlement, Mr. Taub has
agreed to pay a penalty of $50,000, costs of $15,000 and to accept
a permanent ban from registration approval with any IIROC
The Law Society of British Columbia’s Cloud Computing Working Group issued its Final Report on Cloud Computing on January 27, 2012, amending an earlier consultation report approved by the "Benchers" on July 15, 2011.
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