Atrocious investment advice at banks

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Atrocious investment advice at banks
Topic Started: Mar 1 2014, 03:51 AM (255 Views)
Darcie	Mar 1 2014, 03:51 AM Post #1
Skeptic Posts: 31,154 Group: Member Member #714 Joined: March 30, 2010	Quote: As RRSP season closes and many Canadians prepare for tax time, a CBC Marketplace investigation reveals that financial advisers at some of Canada’s top banks and firms are giving consumers inaccurate, misleading and inappropriate advice. Meanwhile, consumers face a complicated patchwork of regulatory bodies if they want to complain about bad investment advice, as some investor rights groups call for more robust consumer protection rules. Since a third of Canadians rely on advisers to help them make financial decisions, Marketplace sent a person wearing hidden cameras to visit the five big banks and five popular investment firms in Ontario. The full investigation, Show Me The Money, reveals how individual banks and firms performed. The show, including practical tips on how to hire a financial adviser, airs Friday at 8:00 p.m. (8:30 p.m. NL) on CBC Television. “That’s one of the worst pieces of advice I’ve ever heard in my life,” financial analyst and former adviser Preet Banerjee told Marketplace co-host Erica Johnson when shown hidden camera footage of one of the tests. “That was atrocious. That’s the only word to describe that advice.” http://www.cbc.ca/news/business/hidden-camera-investigation-uncovers-atrocious-investment-advice-1.2553560?cmp=rss This is a very serious issue as most people I know trust their bank ahead of anyone else. This show is worth watching on CBC tomorrow at 8pm. One good reason for keeping them, they do good investigative work against the paper gods that other commercial stations don't do at all.



swing	Mar 1 2014, 06:05 AM Post #2
swing Posts: 9,979 Group: Member Member #359 Joined: August 18, 2006	http://www.cbc.ca/news/business/hidden-camera-investigation-uncovers-atrocious-investment-advice-1.2553560?cmp=rss I don't think this surprises many of us!



Dana	Mar 1 2014, 06:16 AM Post #3
WWS Hummingbird Guru & Wildlife photographer extrordinaire Posts: 13,054 Group: Member Member #830 Joined: March 23, 2011	I think this has already been posted which brought back the memory of when I needed to move some money around and a CIBC financial adviser advising me that another bank where her husband worked was pleasant and everyone was very nice. When I asked about their interest rate she shrugged and said she didn't know. A friend who worked for RBC for eons (with a pittance of a pension to look forward to) spoke of how her job was changing over the years to one where all employees were required to sell bank services above all else. Sometimes customers are confused and think the advisers who are bank employees are on OUR side.



Delphi51	Mar 1 2014, 06:27 AM Post #4
Member title Posts: 13,967 Group: Administration Member #441 Joined: October 10, 2006	Thanks for this - tomorrow at 8 pm on CBC.



erka	Mar 1 2014, 06:35 AM Post #5
Gold Star Member Posts: 5,330 Group: Member Member #233 Joined: February 8, 2006	Not only are they guilty of bad advice, but also of underhanded tactics: Quote: Wong found two of the panel members — Ogden's superiors, Paula Vanni and Rod Fossen — "were motivated to fire an unhappy employee before she quit," ensuring they would retain her client accounts — worth $233 million — after she was gone. http://www.vancouversun.com/Judge+slams+CIBC+firing+Vancouver+employee/9550845/story.html



Trotsky	Mar 1 2014, 09:11 AM Post #6
Big City Boy Posts: 38,319 Group: Member Member #79 Joined: September 8, 2005	I have found that with every single expiring CD at a myriad of banks over the years, they all had the same exact advice: "Our investment advisor has some onteresting alternatives that can earn you more money." When pressed, they all distilled to the same advice: ANNUITIES that were very profitable for the bank and very confusing for the investor.



Daniel	Mar 1 2014, 02:37 PM Post #7
Small Star Member Posts: 902 Group: Member Member #759 Joined: May 9, 2010	I trust none of them. Always self-managed my own investments. If you can't understand an investment don't invest in it.



Delphi51	Mar 1 2014, 06:03 PM Post #8
Member title Posts: 13,967 Group: Administration Member #441 Joined: October 10, 2006	I must say I have never had bad advice at any bank. The licensed financial advisers at banks tend to be a bit on the careful side for my taste, but that is a good thing for most people.



swing	Mar 10 2014, 10:40 AM Post #9
swing Posts: 9,979 Group: Member Member #359 Joined: August 18, 2006	Quote: Wong found two of the panel members — Ogden's superiors, Paula Vanni and Rod Fossen — "were motivated to fire an unhappy employee before she quit," ensuring they would retain her client accounts — worth $233 million — after she was gone. She should not have transferred $$ into her own accts., even if asked by the client. I'm not defending the bank but no matter your level you don't do this! This appears to be one of the problems, however the judge ruled on her side. These clients you can be sure will follow her, no matter the judgment! I certainly was not at her level in my banking career, but was occasionally asked by clients to "bend the rules"! I would always reply "I don't make the rules, but I have to obey them or I won't have a job! Another lady and I ran the business centre, taking deposits, ordering/shipping cash etc. We had one fellow in particular, who had many million invested. He was forever asking to have his service charges, overdraft interest, reversed, extra cash bags, elastics, you name it! In his mind the bank had all these profits. They do not think or care for that matter, about the lowly customer service rep!



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