Investors looking to do a basic background check of their investment adviser will now have a more complete report available from the Investment Industry Regulatory Organization of Canada (IIROC).
On Monday, IIROC announced it had replaced its previous information service on member firms and registrants with a streamlined IIROC adviser report, which is aimed at helping investors who want to perform basic due diligence on financial advisers approved at IIROC-regulated firms.
The new service provides in a single, electronic report an adviser’s background that includes everything from companies he or she had been registered with in the past, investment categories and jurisdictions the adviser is approved to do business, industry courses and exams they may have taken, or been exempted from taking, as well as any disciplinary actions taken against the adviser.
In the past, investors were only able to obtain an adviser’s disciplinary history and had to make a separate written request for an adviser’s background information. Despite the limitations of the older system, IIROC had received about 1,700 requests per month in the past year alone for adviser background information.
Susan Wolburgh Jenah, IIROC president and CEO, said, “Recent frauds and Ponzi schemes that have victimized investors underscore the need to give investors better tools to verify that their financial adviser is registered with and regulated by a securities industry regulator.”
To do a search of your own IIROC-registered investment adviser, go to: http://www.iiroc.ca/English/Investors/KnowYourAdvisor/Pages/default.aspx
Business in Vancouver recently reported on the record number of complaints Canadians made against banks and their investment brokerage firms, many related to concerns over the appropriateness of investments advisers recommended to their clients (See “Recession results in record number of complaints”– issue 1080; July 6-12).