It’s no wonder that a recent report from Finder.com revealed one-in-three Canadian millennials are prepared to dump their investment advisors and go it alone.
Only 21 per cent of Generation X investors and 11 per cent of Baby Boomers feel the same way. That’s still a lot of skepticism but it suggests age brings the wisdom to know the chance of success for a long-term financial plan is much greater when a professional advisor is involved.
To help battle that skepticism, the B.C. Securities Commission lists four steps to determine if advisors are registered, in good standing with regulators, and the right fit for individual investors.
Any individual or firm selling any investment product including stocks, bonds, mutual funds or exchange-traded funds (ETFs) must be registered with regulators in the provinces and territories where they do business. In addition to keeping track of whoever calls themselves advisors (which can be just about anyone), regulators try to keep tabs on them to ensure they are qualified according to certain standards, and report on any shady dealings.
Step 1: Visit the Canadian Securities Administrators’ (CSA) national registration database. Advisors not included in the database are probably a huge red flag but there’s always the possibility of error. If the “advisor” says they are registered, inform them they are not included in the database — but don’t commit until they are listed.
There are different categories of advisors depending on the investment products they sell. Mutual fund dealers, for example, can only sell mutual funds.
While “advisor” is a broad term (and also spelled “adviser”), there is a long list of designations and titles. Common ones are Fellow of the Canadian Securities Institute (FCSI) or Chartered Strategic Wealth Professional (CSWP) for advisors with leadership or training roles.
Investment and portfolio managers who work with individual clients will often have Chartered Financial Analyst (CFA) or Chartered Investment Management (CIM) designation.
Step 2: Find out if the investment advisor or firm has ever been disciplined for bad practices by going to the CSA’s disciplined list.
If they are on the list you can find a record of the violation and the discipline they received no matter how serious. The list, however, does not include advisors who are currently under investigation or involved in a hearing or settlement process.
Step 3: Take matters into your own hands with a simple internet search. It’s amazing how much you can learn about a person by putting their name in a search engine.
Individual advisors and firms often include backgrounds and qualifications on their websites, and will go to great lengths to highlight their specialities and accomplishments.
Credible media sources don’t just report negative news on investment advisors. You might find articles on how well they managed client portfolios through turbulent times or unique strategies that have paid off.
Step 4: Set up a formal meeting with an advisor, whether in person, by phone or video chat.
Ask about credentials, investment strategies, and – most important – fees. Investment fee structures can be more complicated than titles and designations, so be sure you understand what you are paying for.
Also, ask how many clients they advise and how much money they manage in total. It says a lot about the advisor’s experience and success.
A good advisor will also need to know about you; how much money you have to invest, your retirement goals, and how much risk you are prepared to take.
A good client/advisor relationship is a two-way street and you need to be comfortable with each other.
RBC Dominion Securities fined $350K for supervisory failings – Investment Executive
The friend — referred to as SC — acted as SK’s accountant and had trading authority over SK’s accounts. According to IIROC, Benson placed undue reliance on communications with SC as SK’s trading authority, rather than ensuring the account parameters were appropriate for SK.
SC went on to open margin accounts at RBC DS for himself and his spouse. The margin accounts were guaranteed by SKL, a business owned by SK that had a corporate account with RBC DS.
As with SK’s accounts, SC was the sole trading authority for SKL. SC signed the guarantees for his and his spouse’s margin accounts on behalf of SKL — representing a conflict of interest that Benson failed to address, IIROC noted.
“Benson did not take adequate steps to ensure that SK understood the nature, significance, and financial implications of the guarantees, and RBC DS failed to sufficiently supervise Benson in regard to confirming the extent of her direct communication with SK,” the settlement agreement read.
The use of margin in SC’s and his spouse’s accounts was several times their stated net worth, according to IIROC. SC’s most heavily traded account was almost always in a negative equity position, and his spouse’s account was always in a negative equity position.
When RBC DS inquired about the spouse’s account, Benson adjusted the spouse’s investment knowledge upward on a KYC form without undertaking the due diligence to support such a change, according to IIROC.
Following SK’s death in October 2014, SC began transferring money from SKL to his and his spouse’s margin accounts, beginning in December 2014. RBC DS approved three transfers totalling more than $3 million following discussions with Benson. The transfers amounted to “a substantial part of the assets of SKL,” according to the agreement.
Although Benson became aware of SK’s death shortly after it happened, she didn’t inform RBC DS of her client’s death until January 2015. When the transfers were approved, RBC DS had not been provided a copy of SK’s will or received instructions from SK’s estate trustees.
RBC DS did arrange a meeting with SK’s estate trustees and alerted them to the transfers from the SKL account. RBC DS also made a voluntary payment of $500,000 to SKL. IIROC considered both of these actions to be mitigating factors.
Nonetheless, IIROC said RBC DS “placed undue reliance on Benson’s representations regarding her knowledge and discussions with the clients at issue, when heightened supervision or direct contact with clients was required.”
In addition to a $350,000 fine, RBC DS agreed to pay $50,000 in costs.
In a separate settlement hearing, Benson agreed to a $30,000 fine and a five-year suspension from IIROC. She also agreed to pay $10,000 in costs. Benson retired from RBC DS in March 2016 and is no longer a registered representative.
RBC GAM names new global infrastructure head – Investment Executive
Canaccord Genuity G Ventures Corp. will focus on acquisitions in the mid-cap space
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July 26, 2021
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The measures would seek to avoid an unprecedented default on U.S. national debt
The notes will bear interest of 3.6% annually for the first five years
- By: IE Staff
- July 23, 2021
July 23, 2021
Euro Manganese Announces the Second Tranche of EIT InnoEnergy's Investment – Financial Post
- The Company has received a second tranche of investment from EIT InnoEnergy of €125,000, bringing the EU-backed body’s investment to date to €187,500.
- The aggregate investment from EIT InnoEnergy is intended to be €250,000 and will help accelerate the Chvaletice Manganese Project’s successful integration into Europe’s electric vehicle (EV) battery value chain.
VANCOUVER, British Columbia, July 27, 2021 (GLOBE NEWSWIRE) — Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF) (the “Company” or “EMN“) is pleased to announce the receipt of a second investment tranche from EIT InnoEnergy amounting to €125,000 (CAD$185,162).
Pursuant to the terms of a Project Support Agreement entered into by the Company and EIT InnoEnergy (the “Agreement“), announced on February 22, 2021, the Company is to receive a three-tranche investment having an aggregate value of €250,000. The funds are being used to support ongoing work on the Chvaletice Manganese Project’s (the “Project”) definitive feasibility study and on the Chvaletice demonstration plant, which is intended to produce large-scale samples of high-purity manganese for supply chain qualification by prospective customers, including European electric vehicle makers and battery manufacturers.
EIT InnoEnergy is a Knowledge and Innovation Community supported by the European Institute of Innovation and Technology. It leads the industrial stream of the European Battery Alliance, an initiative launched by The European Commission in October 2017 with the objective to build a strong and competitive battery industry in Europe. The support of EIT InnoEnergy, which also includes assistance in securing financing and offtake agreements, is intended to help accelerate the Project’s successful integration into Europe’s electric vehicle (EV) battery value chain.
The first EIT InnoEnergy investment tranche of €62,500 (CAD$92,850) was advanced to the Company on March 24, 2021, for which the Company will issue 147,380 common shares (“Shares“) at the price of CAD$0.63 per Share (refer to EMN news release dated March 30, 2021). The second investment tranche of €125,000 (CAD$185,162) was advanced to the Company on July 26, 2021. Accordingly, the Company will issue an additional 330,647 Shares to EIT InnoEnergy at the price of CAD$0.56 per Share being the 10-day volume weighted average stock price on the TSX Venture Exchange (“TSXV“) prior to receipt of the second investment tranche. This brings EIT InnoEnergy’s total investment to date to €187,500 (CAD$278,012). The issuance of the 478,027 Shares is not expected to occur until early January 2022 and remains subject to the approval of the TSXV. In accordance with Canadian securities laws and policies of the TSXV, Shares issued to EIT pursuant to the Agreement will be subject to a four month and one day statutory hold from their date of issuance.
For more information about EIT InnoEnergy’s support of the Chvaletice Manganese Project, see EMN’s news release dated February 22, 2021.
About Euro Manganese Inc.
Euro Manganese Inc. is a battery materials company whose principal focus is advancing the development of the Chvaletice Manganese Project, in which it holds a 100% interest. The proposed Project entails re-processing a significant manganese deposit hosted in mine tailings from a decommissioned mine, strategically located in the Czech Republic. The Company’s goal is to become a leading, competitive and environmentally superior primary producer of ultra-high-purity Manganese Products in the heart of Europe, serving the lithium-ion battery industry, as well as other high-technology applications.
Authorized for release by the CEO of Euro Manganese Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), or the ASX accepts responsibility for the adequacy or accuracy of this release.
|Marco A. Romero||Fausto Taddei|
|President & CEO||Vice President, Corporate Development|
|+1 (604)-681-1010 ext. 101||& Corporate Secretary +1 (604)-681-1010 ext. 105|
|Director of Communications|
|#709 -700 West Pender St.|
|Vancouver, British Columbia, Canada, V6C 1G8|
Forward Looking Statements
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or the Project to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Such forward-looking information or statements relate to future events or future performance about the Company and its business and operations, which include, among other things, the use of proceeds of the funds advanced by EIT, receipt of additional funding from EIT, TSXV approval for the issuance of Shares to EIT, the completion and timing of the definitive feasibility study, the timing of the delivery and operation of the demonstration plant, and other statements with respect to the continued development of the Chvaletice Manganese Project.
Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed under “Risks Notice” and elsewhere in the Company’s MD&A for the year ended September 30, 2020 and its most recent Annual Information Form.
The forward-looking statements contained in this news release are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
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