“Except for a few high profile cases — in which the investors did not get their money back despite the criminal convictions — investors are pretty much on their own. The regulatory regime must change so that there are consequences for a breach of trust that can be pursued directly with the help of an investor’s champion,” Susan Eng, vice-president of advocacy for the Canadian Association of Retired Persons (CARP), a national advocacy organization for aging Canadians.
The importance of communication between client and advisor goes beyond the markets. It is an important piece in the insurance industry. Financial planner and insurance broker Stephen Smith, of Port Hope, Ont.-based Yorkminster Insurance Brokers calls clients three to four times during the course of a typical 10-year renewable and convertible life insurance policy. This way clients are alerted about the possibility of a considerable increase in premiums when the policy ends and have an opportunity to hedge against such increases by purchasing a replacement policy a few years earlier.
As for Bob Lawrence, he continues to be his own financial advisor taking the view that if he makes a mistake he only has himself to blame. And more recently when his son was stalled in an investment strategy, he stepped in.
“Being retired allows me extra time to seek out what I want. But for any individual wanting to do investing on his own he has just to keep reading and searching. The approach being do thorough, very thorough research and if carried out properly, the stock you purchase can be held for as long as you wish,” says Mr. Lawrence. No one will be calling him to sell it.