fiduciary or not? a "Bait and Switch" game

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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 8:20 pm

93 Uniform Fiduciary Standards_020.jpg
once again the US is a few years ahead of understanding and admitting what relationship truly exists.
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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 8:13 pm

58 industry codes_059.jpg
58 industry codes_059.jpg
funny, that your canadian investment dealers, some claiming the highest degrees of ethics and transparency in their codes of conduct cannot even be upfront with customers and tell them in advance what duty of care they should expect......instead they rely on the industry "bait" with trusted professional advice, and then the industry "switch" by delivery of a correspondence trained commission salesperson
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59 Playing the market_060.jpg
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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 8:06 pm

54 Courts Approach_055.jpg
54 Courts Approach_055.jpg
a bit more common sense from the Fair Dealing Model


there is an awful lot of fraudulent and negligent misrepresentation involved in selling someone on the concept of trusted advice, and then delivery of commission sales. Those are two different services, and fraud is the only way to sell one and deliver the other.
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57 advisory relationship_058.jpg
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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 8:04 pm

53 Law and Fair Deraling_054.jpg
the industry killed this FAIR DEALING MODEL. I felt that it was to .........um.......fair.
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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 8:00 pm

51 RBC Investment Philosophy_052.jpg
seems to me this firm is promising a fiduciary duty........or certainly leading customers to believe such a relationship exists:
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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 7:57 pm

47 Hunt V TD_048.jpg
another big bank beats an elderly couple in court

(best bait and switch in the industry) see http://www.examiner.com/crime-in-calgar ... and-switch
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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 7:55 pm

44 introduction Case Study_045.jpg
Here is more from industry training manuals:
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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 7:52 pm

Here is what the big firms tell 80 to 90 year old clients who put their faith and trust in people who called themselves, "investment advisors"
20 legal Fiduciary_020.jpg
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Re: fiduciary: lets play it both ways

Postby admin » Fri Apr 08, 2011 7:50 pm

26 Fiduciary Duty open client_027.jpg
here is a page from the Branch Manager course from the CSI

I don't think lawyers and courts should let investment firms skate away freely from the fiduciary word, when I look at the next few posts and documents.

They are simply playing the 800lb gorilla game, meaning they get to do whatever it is that they wish to. Call them on this game, take them to court and hold them accountable to their words, and their promises.
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Re: fiduciary: lets play it both ways

Postby admin » Sun Mar 27, 2011 10:39 pm

Here is illustration #1 which comes from the handbook about fiduciary duty:
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Re: fiduciary: lets play it both ways

Postby admin » Sun Mar 27, 2011 10:37 pm

B Managers.jpg


The Canadian Securities Institute has BRANCH MANAGERS COURSE BOOK which includes some interesting comments on FIDUCIARY DUTY

Unfortunately the investment business does not follow these, and instead prefers to use the great "bait and switch" tactic of advertising and luring customers into a false sense of security using great promises of trust, professionalism, reliance, capability, and wealth management etc., etc. Then the industry uses the average clients trust and vulnerability to make the maximum commissions possible in about 80% to 90% of the cases as researched by industry sales stats of mutual fund class sales, wrap account sales, etc.
to be continued.........
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Re: fiduciary: lets play it both ways

Postby admin » Fri Mar 25, 2011 7:15 pm

In a slight, but not too far deviation, for history sake, the following about the German Hyperinflation of the early 1900's:


characteristics of Weimer Germany are apparent in the United States. Parallel observations are sometimes less than they appear (e.g., in both cases, the people enjoyed eating meat), but are striking. The German incident happened over four years (also arbitrary. It can be argued that any year from 1914 to 1921 was the point of departure.)

Similarities to the U.S. have been in motion for 30 years or so. These include: (1) a high concentration of wealth among those who leverage, (2) the middle- and lower-classes falling behind, but not understanding or knowing it (or - knowing it but not allowing themselves to think about it), (3) the rise of a gambling culture, (4) including financial speculation on the stock exchange, which spread to all ranks of the population, (5) the blossoming of a financial industry, with quantity crushing quality (Weimer bank tellers became financial advisers since most people were at a loss, and would take any advice, which was often horrible, but probably well-intentioned)

read the whole thing at

http://www.aucontrarian.com/
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fiduciary or not? a "Bait and Switch" game

Postby admin » Fri Mar 25, 2011 7:08 pm

A securities dealer may perform a variety of functions. First, in his most common role, the dealer is an intermediary. He buys and sells securities on behalf of his client, in accordance with the client's instructions. The dealer is in no way involved in the management of his client's portfolio and has no discretion regarding its content and [page650] the transactions to be carried out. In this situation, the client's account is sometimes referred to as "non-discretionary".

The above paragraph is from a court case called LAFLAMME v PRUDENTIAL-BACHE Co File No.: 26659 Supreme Court of Canada 1999: November 2 / 2000: May 3.

I print it to show how the courts (and the investment dealers) use this "antiquated" thinking to NEVER have to owe a duty of care to their customers. I know. I was a broker from 1984 until 2004. I watched the entire game change before my eyes.

In late 1987, or early 1988, after the great crash of Oct 1987, they took away our business cards that said "stockbroker" on them, and gave us new cards that said "investment advisor". Marketing felt that "stocks" were a dirty world, and that we would succeed bette with "advisor". And so off we went as "advisors". It was not until long after I was retired in 2004, that I ever learned that my license and registration category was always "salesperson", as was nearly every person in Canada calling themselves "advisor". Our industry is an 800 lb gorilla, in that we get to do "whatever we want", regardless of rules, codes, or nice words. We police ourselves, we are self regulating, we take the high moral ground by virtue of this, and we then can do immoral things with it for money. Nobody could stop us. Police stayed away, Courts deferred to our "self regulators". We were a force unto ourselves.
I was not on side with this "high moral ground" thing. I am just letting you know how it was.

this forum topic will try and condense down the aspects of fraudulently misrepresenting the role of investment product sellers in Canada, and how they have captured a place in the public minds of "trusted advisors". Further how we have misused this placement to abuse and cause financial violence to our customers, with seemingly no consequence to ourselves. Nice work if you can get it.
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