FURTHER TO DUTY OF CARE OWED TO CLIENTS
(easy steps to elder abuse in Canadian financial services industry)
My time working in the financial services industry gave me some interesting insights into the relationship between client and advisor or salesperson.
It reminded me a great deal of the dependant kind of relationship that exisits in a few other fields I am aware of. One is my local flight instructor, who holds my life in his or her hands, my future ability to fly, perhaps to earn my licence, perhaps to earn my living in this area. Another is the local hockey coach who may have players who hope to have a future in hockey. The player, as well as the flyer become so dependant on the good graces, good references and support of the instructor/coach that never will they think of questioning the behavior, the advice, or the activities of that person. Even when they cross over to improper behavior. To speak out might seriously impair the ability to progress and proceed to your goals.
Similar relationships exist between investment expert and client. The typical elderly client, may be trusting, vulnerable, alone, uninformed, basically a very easy target for a financial predator. The advisor is usually, young, informed, confident, backed by a very large firm, and full of promises of care and service. The balance of power between these two parties is so significant that those who fall victim to the odd financial services predator have virtually no chance in Canada. They often rely so heavily on their financial person, that they may never find out that they were ever abused. Firms are not yet doing the proper job of protecting clients, and in fact are far more active in self protection, secrecy, and limiting their liability if one looks at the many cases on record.
Those few who would abuse clients know this, and as an added bonus, are aware that the oldest, most vulnerable, most alone clients out there, may also have the most money. It is a relationship that requires the highest standards of care, and so far all I can point to is that we have the highest standards of talk and advertising promises in Canada. The care is yet to come.
To learn more visit
www.sipa.to small investor protection association
www.regulators.itgo.com website of industry indiscretions
