3 Things You Should Never Do With Your Investment Advisor

Never Lend Money to Your Advisor

You should never lend money to your advisor. CIRO rules prevent advisors from asking for, or accepting a loan from a client. If an advisor ever asks you for a loan, or if you have lent money to an advisor in the past, you should report this fact to the advisor’s firm immediately.

Never Name Your Advisor as a Power of Attorney or Executor

You should never name your advisor as your power of attorney or an executor in your will because it is contrary to CIRO rules and may place your advisor in a significant conflict of interest. You should also never name your advisor as a beneficiary of your will as this may also put your advisor in a significant conflict of interest. When selecting a person to act under a power of attorney or as an executor, or naming a beneficiary of your will, it is best to consult with a lawyer or other professional who deals in estate matters.

Never Sign a Blank or Incomplete Form

You should never sign a blank or incomplete form. Signing a blank form can pose similar risks to signing a blank cheque, which is something most Canadians would never do. There are instances where blank signed forms have been used for unauthorized trading and fraud.