20 June 2017 07:00
Photo : Freepik
For Pierre Lortie, senior business advisor with the law firm Dentons Canada, the positive impact of the board plays out and adds up in time. Abolish commissions integrated, does not seem a good idea.
Mr. Lortie made the remarks at the 11th Symposium of compliance, organized by the Council of the Québec investment funds on 26 April last. Mr. Lortie is well known in the world of business in Quebec, having directed several well-known enterprises du Québec inc., in particular, the Bourse de Montreal, Provigo and Bombardier Transportation.
To build his argument, Mr. Lortie has relied on data Centre interuniversitaire de recherche en analyse des organisations (CIRANO). According to this organization, an investor with access to a financial advisor accumulates financial wealth 3.9-fold greater after 15 years that an investor is going consulting services.
«The difference between those who are rich and those who are poorest in retirement lies in the way they have distributed their savings in different investment types. Investors who do business with financial advisors tend to have a balanced portfolio, but a large part of which is placed in the investment more risky, such as mutual funds, which offer better yields. «
Mr. Lortie remember that 80% of mutual funds are purchased through a financial advisor. «A regulation that changes the compensation structure of the mutual fund will have significant systemic impact on the entire canadian financial sector,» he said.
And this change is due to the economic nature of the council, which is not a good. «The behavior of a client in the face of the board is different as compared to a well. When one buys fruit at the grocery store, as one sees, one knows if it is good or not. The consumers are not willing to pay in advance for something they don’t know the value, » says Lortie.