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Investment Fee Disclosure Will Improve

Investment Fee Disclosure Will Improve

July 18, 2023

Investment fees are important.

Fees and costs that are fair and pay for services that benefit an investor is acceptable.

Fees that are too high or are charged for services not provided result in a lower investment return to you the investor and unfairly compensates your financial advisor. That is unacceptable.

An upgrade to disclosing investment fees and costs to investors was announced by securities and insurance regulators.

The new regulations will be effective by the end of 2026. In the meantime, I have a recommendation.

Start the fee conversation with your investment advisor now. This is not meant to be antagonistic, just a reasonable discussion between an investor purchasing services from their advisor and fully understanding the total cost of that relationship. That is a fundamental foundation of free enterprise.

If investment fees, once they are fully understood, do not seem reasonable, there are several options. Fees can be reduced or the service level increased. This logic is consistent with the way we buy other goods and services.

The conversation about investment costs is not meant to be unfair to the advisor. It allows the advisor to clearly articulate their services and the benefit to the client. Consider this a healthy conversation.

Investing is an important component of personal financial planning. Financial planning helps individuals have a better chance of success in achieving life objectives.

For example, many want to assist their children with the cost of post-secondary education and preparing for a comfortable retirement.

Understanding all aspects of investing including fees other costs you pay is in your best interest.

Peter Watson is registered with Aligned Capital Partners Inc. (ACPI) to provide investment advice. Investment products are provided by ACPI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessarily those of ACPI. Only investment-related products and services are offered through Watson Securities of ACPI. Peter Watson provides wealth management services through Watson Investments. He can be reached at www.watsoninvestments.com