Canadian investment advisors are becoming increasingly interested in using exchange-traded funds to diversify their client portfolios. ETFs offer many advantages, including lower fees, transparency, and a wide range of products. According to a recent survey by Evolve Funds Group Inc., advisors are increasingly inclined to use ETFs, although a perception of a limited number of Canadian active ETFs hinders their use. Resource : ex-ponent.com
Fort Washington Investment Advisors, Inc. | Asset Management
However, Canadian investment advisors must be knowledgeable about the tax implications of keeping a Canadian account after leaving the country. Most Canadian investment advisors are not registered with FINRA or SEC, so they are not allowed to manage an existing Canadian account. Consequently, if a Canadian expat decides to leave the country and start investing in the U.S., they may need to dissolve their Canadian retirement plans. In addition to the tax implications, this can result in taxable income for the individual.
The survey also found that Canadian investment advisors are bullish on domestic equities and commodities. This is a change from the bearish outlook advisors held in the second quarter. This is consistent with the fact that advisors are seeking advanced knowledge for their clients. This can also be seen in their willingness to pay for CEPD courses.
In addition, the CSA is implementing a new best interest standard that would impose a legal duty on Canadian investment advisors to protect their clients’ best interests. While the new standard may raise some questions, there is progress on the way the standard is to be implemented. Ontario is implementing a whistleblower program and provincial securities regulators are collaborating more with each other to enforce the new standards.