More direct control
You choose the account, investments, trades and timing. This can offer flexibility and lower service costs, but research, diversification, recordkeeping and ongoing review remain your responsibility.
Module 05 · Choose how you will decide
Support, control and cost come in different combinations.
You can make investment decisions yourself, work with a registered adviser or use elements of both. The useful question is not which approach is universally better, but which responsibilities and services fit your needs.
Compare the approaches
Start with the work each option requires.
Neither approach removes investment risk. Both require you to understand what you own, what you pay and whether decisions still match your goals.
Recommendations and support
A registered adviser may help assess your circumstances, recommend suitable investments and provide ongoing service. Available products, service depth and compensation vary by adviser and firm.
Not always either-or
Some people seek planning or advice for complex decisions while managing other investments themselves. Be clear about which decisions each person is responsible for and how the combined portfolio will be reviewed.
Decision check
Consider more than investment selection.
- Time: Can you research, implement, monitor and rebalance a plan consistently?
- Knowledge: Can you evaluate products, risks, costs, taxes and account rules without relying on promotional claims?
- Behaviour: Can you follow a plan during sharp gains, losses and alarming headlines?
- Complexity: Do your planning, family, tax, business or estate circumstances call for specialized help?
- Service: Do you want recommendations, comprehensive planning, transaction help or only a second opinion?
- Cost: What will you pay in dollars and percentages, and which services are included?
Understand the trade-off
Advice is a service, not a guarantee.
Paying for advice does not guarantee positive returns or eliminate your responsibility to ask questions. Investing on your own does not make investing free: product expenses, trading, spreads, administration and currency conversion may still apply.
Compare total value, not one fee.
Ask what planning, recommendations, monitoring, communication and other services are included. Then compare the total costs with the services you expect to use.
Ask what planning, recommendations, monitoring, communication and other services are included. Then compare the total costs with the services you expect to use.
Before choosing an adviser
Interview the person and verify the record.
A title alone does not tell you what someone is registered or qualified to do. Meet more than one candidate, take notes and do not feel pressured to decide at the first meeting.
Are you registered?
Ask for the person’s full legal name, firm and registration category. Check the National Registration Search and review any terms, conditions or disciplinary history.
What can you provide?
Ask about qualifications, experience, products, planning services and limits. Confirm whether tax, legal or estate matters require another qualified professional.
How are you paid?
Ask about salary, commissions, asset-based fees, hourly or flat fees, product costs and referral arrangements. Request the full fee schedule in writing.
What might influence the advice?
Ask which conflicts exist, how they are addressed in your best interest and whether the adviser or firm receives more for certain products or referrals.
How will decisions be made?
Ask how your goals, finances, investment knowledge, time horizon, risk profile and capacity for loss will shape recommendations and future reviews.
What happens after opening?
Confirm who will serve you, how often you will meet, what reports you will receive, how changes are handled and how to make a complaint or leave the firm.
Know your investor rights
You still have the final say.
CIRO states that investors working with an adviser have rights that include fair, honest and good-faith treatment; suitable recommendations that put the client’s interests first; clear information about risks, performance, fees and costs; disclosure of conflicts; and a complaint process.
Keep copies of agreements, statements and trade confirmations. Read them, question anything unclear and update the firm when your circumstances change.
Verify before acting
Use current registration and regulatory information.
Registration categories, services and rules can differ. Confirm that a person and firm are registered for the activity and province or territory involved before investing.
Primary references: CIRO: DIY vs. advised investing, CIRO: Selecting an advisor, CIRO: Know your rights as an investor, National Registration Search, and FCAC: Choosing a financial advisor.