About $195 million is going to discount brokers, instead of you and me

Apr 14 21:04 2018 Print This Article

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Did you notice how virtually everyone on Bay Street was up in arms when Bill Morneau announced recently that the federal deficit for the forthcoming fiscal year would be $18 billion?  The outcry was predictable and enormous:

How is this fair to future generations?

When will we ever return to surplus?

Notwithstanding the answers to the above, how long will it take to eradicate the accumulated national debt?

Well, I noticed something else…. rank silence on the matter of trailing commissions that are being paid by retail clients at discount brokerages. Specifically, the Canadian Securities Administrators (CSA) now tell us there is about $25 billion in A series mutual funds paying trailer commissions (ostensibly for financial advice) to discount brokers – a group that goes out of its way to inform its clients that it will not, under any circumstances, offer financial advice.

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Money Sense

MoneySense is a Canadian personal finance and lifestyle magazine published by Rogers Publishing Limited, a division of Rogers Communications.Written for Canadians who want to take financial control of their lives, MoneySense is Canada's best-selling investment and lifestyle magazine, helping readers make smart, informed decisions about how to get the most from their money. The magazine has received many awards, including multiple National Magazine Awards and CFA Society Toronto Awards.

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