| |
INVESTMENT COUNSEL |
BROKER/ INVESTMENT DEALER/ SECURITIES DEALER.
Advisory and Discretionary. |
MUTUAL FUND DEALER |
| REGULATORY SUPERVISION |
Provincial Securities Commission |
Investment Dealers Association |
Provincial Securities Commission |
| QUALIFICATIONS FOR REGISTRATION |
Portfolio Manager / Investment Counsel -
Level I Chartered Financial Analyst program, Canadian Investment Management Course plus five years experience in research or portfolio management. |
Advisory -
Financial Advisor -
The Canadian Securities Course and the Conduct and Practices Handbook exam.
Discretionary
Portfolio Manager/ Investment Counsel Level 1 Chartered Financial Analyst program, Canadian Investment Management course plus five years experience in research or portfolio management. |
Investment Advisor/ Investment Planner/ Financial Planner -
One of the Canadian Securities Courses, Canadian Investment Funds Course, Investment Funds in Canada Course or Principles of Mutual Fund Investment. |
| REVENUE SOURCES |
Fees for continuous management of investment portfolio. |
Advisory -
Commissions for execution of transactions. Trailer or service fees from product sales.
Discretionary
Fees for the management of portfolios and commissions for the execution of trades. |
Revenue from commissions for product sales, known as load fees and trailer or service fees paid by fund companies. |
| ADVANTAGES |
Continuous management of investment portfolio. Freedom from bias toward transactions. Lower execution costs. No conflict between principal trading or underwriting and portfolio management. Highest minimum qualifying standards for professional staff. |
Advisory -
Can provide advice and execution to clients of all sizes. Wide selection of product availability. Available in communities of all sizes.
Discretionary
Continuous management of the portfolio. Due to the commission revenue are often able to handle accounts of smaller size. |
Ability to process transactions of relatively small dollar amounts and can usually offer regular instalment purchase plans. Wide selection of product availability. Available in communities of all sizes. |
| DISADVANTAGES |
Generally not available to clients with smaller amounts of capital. Clients served from larger financial centres. Difficult to identify service providers due to limited advertising and promotion. |
Potential bias toward transactions and high commission products due to transaction compensation. Combination of sales commissions and built in product fees can be expensive. Lower level of minimum qualification and training. Wide variety in investment experience, training and expertise. |
Potential bias toward transactions and high commission products due to transaction compensation. Combination of sales commissions and built in product fees can be expensive. Lowest level of minimum qualification and training. Wide variety in investment experience, training and expertise. |
