What to know about the know-your-client forms + MORE Nov 28th

Q: When an investment advisor takes on a new client and does not complete the know-your-client forms, is there disciplinary action? Which governing body is responsible?
— Don Henderson
A: Investment advisors are required to follow what are called the know-your-client (KYC) obligations, which are part of provincial securities law. Advisors must verify your identity and personal details such as date of birth, marital status, occupation, income, net worth, and so on. Before they recommend investments, they also need to understand your risk tolerance, objectives, time horizon and investment knowledge. The KYC documents are collectively referred to as the New Account Application Form (NAAF), and they must be updated whenever there is a material change in your situation.
The KYC rules are enforced through regular audits by the Mutual Fund Dealers Association and the Investment Industry Regulatory Organization of Canada, the bodies that license most advisors in Canada.
Say an advisor takes on a new client named Gladys…

There are a number of people working in the financial services industry who, in my humble and respectful opinion, are whistling past the graveyard when it comes setting return assumptions for their clients. Many in the industry continue to rely on historical returns to build out their plans. But there are many reasons why this is no longer a reasonable approach and it could be setting investors up for a great disappointment when those forecasts don’t pan out.
You don’t have to look far to see why advisors want to cling to historical returns. According to Morningstar, the returns for major indexes from 1950 to mid-2015 are as follows:

Index
Historical return

91-Day T-Bills
5.4%

FTSE TMX (Long Bonds)
7.5%

S&P/TSX Composite (Canada)
10…

In in this Feb. 6, 1959 file photo, Cuba’s leader Fidel Castro speaks to a crowd during his triumphant march to Havana after the fall of the Batista regime. (AP Photo/File)
OTTAWA — Prime Minister Justin Trudeau’s office says he won’t be attending any memorial or funeral services for the late Cuban leader Fidel Castro, saying his schedule wouldn’t allow him to attend.
Instead, Trudeau has dispatched Governor General David Johnston to attend a memorial service scheduled to take place Tuesday in Havana.
The service is to take place in Plaza de la Revolucion in Havana, a massive square where Castro often spoke to supporters. It will also be steps away from a memorial where Trudeau laid a wreath during his recent visit to the island nation.

Related: Trudeau’s turn from cool to laughing stock

The Prime Minister’s Office would not say if any other government representatives would attend memorial services or Castro’s funeral.
Other world leaders are also staying away from Castro’s funeral, including Russian President Vladimir Putin, U…

ALBANY, N.Y. – A New York accountant has admitted stealing at least $3.1 million from a Minnesota-based grain shipping company she worked for at the Port of Albany.
Diane Backis, of Athens, New York, pleaded guilty Monday in federal court in Albany to mail fraud and filing a false income tax return. U.S. Attorney Richard Hartunian says Backis not only stole from Cargill, Inc., but caused at least $25 million in losses to the company by manipulating customer invoices and payments.
Backis admitted she stole hundreds of customer payments over 10 years. As part of her guilty plea, she agreed to pay at least $3.5 million in restitution to Cargill and to forfeit her house and other assets.
She faces up to 20 years in prison when she’s sentenced on March 28.
The post Accountant admits stealing $3 million from grain shipper appeared first on Canadian Business – Your Source For Business News.

Canada’s banking regulator warned lenders Monday to remain strict in the way they underwrite mortgages as a way of preventing crises for financial institutions if low interest rates rise and property values drop.