The online study was conducted on 2000 Canadian investors and issues of the study were divided into two; advisor relationships and investor decision-making.
The study found that most Canadian investors seek the advice of their advisor on asset mix, planning and specific types of investments to buy.
It is also stated that the investors’ trust in their advisors’ opinions dominates all other factors in the decision to buy investments.
Regarding the investors knowledge of investor’s fees, the study reveals that investors are unaware of it and are also unaware of potential conflicts of interest.
Further, most investors are not aware of the products which their advisors are registered or licensed to sell and believed that advisor has a legal duty to put their interest ahead of his or her own.
Tom Hamza, president of IEF said, "Investors need to do more to understand how their advisor impacts their investment choices and, ultimately, their returns."
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"This study emphasizes the need for Canadian investors to get clarity about the nature of their advisory relationships and to closely match their needs with the skills and capabilities of their advisor," he further added.