Industry News

Fee-based advisors are not looking after average and below-average clients, so where are these people going to turn?

By Andrew Lau |

RE: Science-denying tactics will do the mutual fund industry no good, by Neil Gross, Inside Track, investmentexecutive.com, February 22, 2016

Banning commission does not serve the public at all. In fact, there are various ways to help consumers achieve their financial goals.

Let me give you an example: My 77-year-old sister, who lives in Vancouver, has $300,000 to invest after selling her small condominium. As I am licensed in Ontario, I called the wealth-management division at one of the big banks in Vancouver to see if they would handle the money. The answer was negative; they are only interested in high net-worth clients. In reality, fee-based advisors are not looking after average and below-average clients.

And would a client who makes $40,000 gross household income per year be willing to pay hundreds or thousands of dollars to a fee-based advisor to do a financial plan?  Where are these lower income earners going to turn?

Andrew Lau
Insurance Agent and Financial Planner
Andrew Lau Insurance Agency Inc.
Toronto