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Old 08-28-2019, 09:55 AM   #11
Franchise Player
Join Date: Dec 2006
Location: Calgary, Alberta

Originally Posted by Wormius View Post
I wonder why anybody would sign up for that, except that they're using pressure tactics / preying on newcomers. There was no transparency that I could see. It would seem like if all you're doing is just maxing out the grant, you would be better off than in those plans. The withdrawal process for even using the money for education looks like pulling teeth. How do those outfits even exist and go unregulated?
Yeah I don't understand it myself. But the truth is, people have no idea about the fees and penalties. I can't see anyone finding out in advance what the process would be to shut this down or move it (or whatever), and deciding that is the way to do things.

One of the issues in personal finance in general, is that the information is asymmetrical. So the advisor/bank rep/whatever the title is has more knowledge and information than the consumer. There's no real fix for that because you want these people to have expertise and knowledge. The issue to me comes down to one thing in my personal opinion: fiduciary duty.

These instruments are regulated by the Securities regulators though (most are based on Ontario and as a result they're regulated by the OSC). So it's really not the wild west at all.
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