Quote:
Originally Posted by Slava
^ Yeah I am licensed and have my licenses sponsored through Manulife. But it is independent in the sense that I don't have to use any of their products at all. So for example I am licensed through IIROC, and clearly clients can hold shares of any publicly traded company and don't have to own Manulife. Same goes for ETFs or funds. I think that's a huge difference, and I would have to look to be specific but I would say the vast majority of my clients aren't holding any Manulife shares or funds.
Insurance is the same and I have the freedom to use a pile of different companies. I would say it's theoretically almost anyone, save for a couple purely proprietary providers. In practice though it comes down to the larger well-known companies for the most part, and based on price for quite a few clients I do use a lot of Manulife. That's definitely not exclusive though, and I have no bias of compensation there. It's just either more sensible, or plain cheaper or whatever the case maybe.
I think it's about as independent as one can be though. Ideally I would be 100% solo and have no dealership and no sponsor for my licenses, but I haven't figured out how to do that just yet! If you have and can point me in the right direction I would be thrilled to learn how to make it happen!
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Let me be clear: I am not directing this at you, this is directed at the industry, but can one be truly independent when they are licensed through a financial institution that has products to sell?
I have no doubt that you act in an independent manner and put your clients best interests first. That is not up for debate, and is not my point.
My point is that the structure of the industry is still drastically flawed. The idea that someone is supposed to be independent, while being licensed through a company that isn't independent, is a pretty silly model. (Again, I am not saying it's silly of you, I am saying the way the industry licenses independent advisors is flawed - that is not the fault of the advisor).
As to the bold, the way to be truly independent is to be licensed by an independent firm. In Canada right now, that means an Investment Counsel. However, that does
not mean that Investment Counsels are all independent (unfortunately) - most are actually very proprietary.
What we need in Canada is a platform of licensing that is completely independent, and that the public
knows and can trust is completely independent. Like the fiduciary license in the US.
But I doubt we'll see that anytime soon.