“If you’re a financial planning client of a bank that has stopped selling third-party funds, it’s time to schedule a chat about the future.”
An interesting article with this headline by columnist Rob Carrick in the Globe and Mail can be found here: https://www.theglobeandmail.com/investing/personal-finance/retirement/article-big-bank-policy-on-third-party-funds-sabotages-advisers-and-serves/ Last month, many of Canada’s largest bank’s decided to stop selling mutual funds from outside companies through their financial advisors.
For many years, the big banks have focused sharply on selling products and services. In 2018, the columnist wrote “most people don’t understand that bankers are salespeople and that banks exploit the loyalty of consumers by encouraging and pressuring their employees to rack up sales… Banks are vendors of financial products, not advisors.”
Now, with the news that Banks will ban the sale of third-party funds, they have chosen to make it clear that they will emphasize selling over advice. Banks introduced planners to their operations many years ago as a way of broadening their service and selling more in-house products.
The alternative if you do not want to deal with your bank planner who is now restricted to using only in house products? Deal with an independent investment advisor or do it yourself with an online/robo-advisor experience. As independent advisors at Ming & Associates, we tend to agree with Mr. Carrick on this one. We have stated for 25 years we firmly believe that independent financial advice provides the best value for Canadians now and into the future.
We make sure to help you understand all of your options so that we can create a solution together that is right for you.
Your individual retirement plan, investment management, and/or overall estate plan should not be entangled with sales tactics. We take pride in being a truly independent firm, which means we can provide the product or service you need from a large number of high-quality financial service providers. This leads to a wide variety of investment services that accommodate client needs on an individual basis.