And just like that, the end of yet another year is upon us. As is customary for many at this time of year, we like to reflect back before looking forward - asking what will the world remember about the year that was? Vaccines and re-openings? Clogged canals and supply chain issues? Changing political currents and climate events? While the culmination of these and many other stories will help define how history remembers 2021, they will fall short of capturing the true tone of the last 12 months. For that, we turn to Google’s latest installment of the “Year In Search 2021” – a video montage derived from popular search queries, videos and images that reflects the year back at us, reminds us of its tone, and seeks to inspire as we look ahead.
Sending you and your families our best wishes for a joyous holiday season and a happy, healthy, and prosperous New Year.
Client Focused Reforms
Regulatory Changes to Advisor Professional Titles
We are writing to you today to share an important update that is being driven industry-wide by our regulators. To better protect the interests of Canadian investors, the Canadian Securities Administrators has introduced Client Focused Reforms (CFR), which take effect December 31, 2021. These new rules introduce a legislative Best Interest Standard, based on the underlying concept that the interests of the client come first – a principle that is at the heart of everything we do.
One aspect of CFR addresses the importance of clear and transparent communication in helping clients and prospective clients understand the advisory relationship. Specifically, advisors will no longer be permitted to use any corporate titles such as “director” and “vice president,” as well as any promotional titles, designations, or industry awards, tied to sales activity or revenue generation. This is meant to ensure clients are not misled about an advisor’s qualifications or confused about what products and services a firm provides.
At Richardson Wealth, we are preparing for these industry-wide changes in advance of the regulatory deadline.
Beginning December 1, 2021, you will notice a change to our professional titles in areas such as our website or email signatures. Additionally, any accolades we have received that are not in keeping with these regulatory changes will be removed from such areas.
You can be assured that our qualifications, experience, and commitment to helping you and your family build and protect your financial legacy remain unchanged.
Protect your finances by choosing a Trusted Contact Person
Elder abuse affects hundreds of thousands of people every year, and often goes undetected or unreported. Sadly, elder abuse can happen at home or in any community setting and can be caused by family, friends, paid care providers, staff or any person in a position of authority and trust. It’s not just physical abuse – for many seniors, it’s their financial savings that are at risk. Investment advisors often hold a place of trust and have a responsibility to ensure that the best interests of clients – particularly those that are vulnerable – are protected.
That’s why the Canadian Securities Administrators recently introduced a new industry standard – a Trusted Contact Person (TCP) – to help investment advisors protect their vulnerable clients. A TCP is someone who can be contacted if an advisor feels their client is being exploited or experiencing financial abuse.
From now on, when you open an account or updates your personal information, an investment advisor should ask if there is a Trusted Contact Person that can be added to your account to help protect you from financial fraud or exploitation.
What is a TCP?
A trusted contact person is someone you trust will contact your investment advisor if they are concerned you are experiencing financial abuse or exploitation – or if he or she feels poor financial decisions are being made out of character.
Who can be a TCP?
A trusted contact may be any one of the following:
- Close friend or family member
- Caregiver
- Accountant
- Another third-party who you believe would respect your privacy and know how to handle the responsibility
To set up your chosen TCP with your investment advisor, you’ll need to know your contact’s phone number and physical address and confirm their relationship to you.
How is a TCP different from a Power of Attorney?
It's also important to remember that a TCP is not the same as a power of attorney (POA) – an individual you should also appoint and ensure your investment advisor has a record of. Unlike a POA, your TCP does not have the authority to make financial decisions on your behalf. However, this person can alert your investment advisor if he or she doesn’t believe a POA is acting in your best interest.
Who needs a TCP?
Seniors or other vulnerable people who may be more susceptible to financial fraud or age-related mental health issues should ensure they have a TCP in place, but it’s also another layer of safety for anyone. Having a trusted contact also puts your investment advisor in a better position to help keep your finances safe.
When should I appoint a TCP?
The best time is to choose a TCP is when you open an account, but you can add this information to your account by completing the TCP form with your investment advisor when you update your personal information.
If you know someone who could benefit from assigning a TCP, be sure to share this information with them.
| Heading South? If you’re a Canadian snowbird and planning to spend an extended amount of time in the United States, you likely have several housekeeping items to arrange to be taken care of while you’re away, including mail collection and snow shoveling. But did you know that keeping track of the number of days you spend in the U.S. should also be on your list?
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