Are you no longer happy with your adviser? Is your adviser changing companies? These are both good reasons to make changes.
Losing money is not always a reason to change advisers. No one can be right all of the time. Think about why you lost money and discuss it with your adviser. You may resolve your concerns that way.
How do I know I need to change advisers?
Ask yourself if your adviser:
- Uses a lot of language that you do not understand
- Does more telling than asking. Your adviser should take time to learn about you and your financial goals
- Wants to buy and sell more often than you'd like
- Gives you less attention or advice than promised
- Does not provide the products or services you need
- Is not acting in your best interest.
Tips for changing your adviser
- Talk to the branch manager: If you are thinking about changing advisers in the same company, a branch manager or supervisor in the company can often help you select another adviser that meets your needs, and transfer your account to them. There should be no costs involved in changing advisers within the same company.
- Learn about the new company first: If you decide to change companies, make sure it's a good fit for you before you move your money. The new company will ask you to sign forms giving them written permission to do the transfer.
- Find out about the fees if moving to a new company: There may be fees to move your investments to another company. Ask if the new company will cover the transfer costs.
- Your adviser may need time to register: If your adviser moves to a new company and you want to move your accounts, be aware that he or she may not be registered to serve you immediately in the new company. If you need help right away, you may need to temporarily change to another adviser in the company you are with right now.
Remember: Look for quality as well as results
You can tell a lot by looking at the quality of service your adviser provides along the way. Plan carefully if you want to change advisers.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.