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NEWSLETTER SUBSCRIPTION

Published quarterly, the CFA Montreal newsletter is an online publication offering content that is both interesting and beneficial to our professionals. Offering exclusive interviews, opinion pieces, information about the Society’s events and activities, industry appointments and personalities, market outlook news, and articles on a wide variety of subjects, the newsletter aims to spur ongoing dialogue among professionals in the Montreal financial industry.
We invite you to send us your areas of interest and ideas for articles. You are also welcome to submit texts you have written and wish us to consider for publication.*
*CFA Montreal reserves the right to decide whether or not to publish articles and to request revisions if it judges that the subject matter represents a sensitive issue or one that may negatively affect the Society or its members.
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mike-schroer

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Visit CFA Québec website

 

CFA

Three simple letters that mean so much more than the words behind them.

Ask any one of the 139,000 charterholders around the world who’ve earned the Chartered Financial Analyst® designation and they’ll proudly tell you why they put those letters at the end of their names.

They’ll tell you that it’s the most rigorous certification program for investment managers.

That it gives them a comprehensive and proven understanding of investment management.

That it demands strict ethical guidelines when dealing with investors while always putting their interests first.

That employers feel reassured because of a charterholder’s ability to understand clients.

That developing markets rely on charterholder expertise to help shape policy and regulations for emerging economies.

But what our charterholders will speak most glowingly about is how complete they feel as investment management professionals.

How well equipped they are to navigate the uncertainties of the financial world.

And how committed they are to raising the standards of the investment management industry.

Because, for them, those three letters make a real difference.

A DIFFERENCE THAT MATTERS

mike-schroer

If you cannot see the video, please click here.  

 

Ask high-net-worth investors why they work with investment managers with the CFA designation after their names and they’ll tell you it’s because of their commitment and professionalism. That those letters represent their proven understanding of everything investment management. And that they apply strict ethical guidelines to every decision they make on behalf of clients while simultaneously putting their interests first. What does all of the above mean to high-net-worth-investors? It means they can rely on CFA charterholders to stay true to their financial goals.

Because, for charterholders and their employers, those three letters are making a real difference every day.

ASK THE RIGHT QUESTIONS

Don’t hesitate to ask questions

It is completely appropriate and in fact encouraged to interview any investment advisor with whom you are considering entrusting the management of your assets. It’s your money, so don’t hesitate to ask questions.

Below are a few examples of questions to help you identify a qualified advisor who meets the CFA’s professional standards.

  • What overall training have you had, and what professional designations do you hold?
  • What positions have you held to date in the financial industry?
  • Have your firm’s clients used your services for an extended period of time? Do you have an established clientele?
  • What specific services do you offer (retirement planning, investments, tax services, insurance, etc.)?
  • What is your compensation structure?? Is it related to portfolio turnover?
  • Are you paid commission on some of the products you sell and are you affiliated with any firm whose products you recommend?
  • What is your philosophy of total portfolio management fees?
  • Have you ever had a conviction, or have you been disciplined for professional misconduct?
  • What is your portfolio management approach?
  • How can your approach help me achieve my investment objectives?
  • What are the expected returns, limitations and risks associated with the investments you are recommending?
  • How often will you communicate with me?
  • What printed reports will I receive?

WHAT YOUR ADVISOR SHOULD KNOW AND ASK

Any competent advisor will want to know your investment objectives, risk tolerance level and overall financial situation. During your initial meeting, the questions the advisor asks will provide you with valuable insight into his or her approach to investing and the professional relationship you can expect.

Below are a few examples of questions an advisor should ask you.

  • What are your investment objectives?
  • How do you define risk?
  • If markets experience a downturn, how low a drop in your portfolio can you tolerate over a one-year period?
  • What personal and professional circumstances currently affect your financial situation?
  • What is the total income, savings level and indebtedness (such as a mortgage) of your household?
  • How would a potential financial loss affect your standard of living?
  • What timeframe are you setting to achieve your objectives?
  • What portion of your assets would you like me to manage?
  • Do other professionals also help you manage your assets, such as an accountant or lawyer?
  • Would you like me to work in collaboration with these professionals?
  • How often would you like to be in contact with your portfolio manager?

These are just a few examples of questions you should ask or be asked. Your goal should always be to establish a transparent and productive professional relationship that provides you with a sense of confidence and support.

SELECTING AN ADVISOR

FINDING THE RIGHT ADVISOR

In order to select an advisor who’s best for you, you must first determine the type of services you need.

  • Do you need assistance buying and selling specific investment products?
  • Are you seeking an advisor to manage your investments on an ongoing basis?
  • Would you like your advisor to develop a long-term, detailed financial plan for you?
  • What is your investor profile, and based on this profile, what type of services or advice do you require?

When selecting an advisor, one factor to consider is the method of compensation. The most common are as follows:

Commission

Many finance professionals are paid on commission. A commission is charged each time a client buys or sells an investment product. It should be noted that in certain situations, this payment method may represent a conflict of interest, should the advisor recommend frequent transactions or try to steer the client towards a particular type of product.

Percentage of assets under management

Some investment advisors charge a fee as a percentage of the client’s total assets, with the percentage determined at the outset by the client and advisor. This compensation method can be a performance incentive to the advisor to grow the client’s portfolio.

Fees

Some investment advisors charge professional fees that may take the form of an hourly rate or a flat fee to cover a pre-determined set of services.

Once you have defined the type of services you need, you will be able to choose the advisor who can best respond to your objectives.

Autorité des marchés financiers

In Quebec, investment advisors must be registered with the Autorité des marchés financiers (AMF). By consulting the “Register of firms and individuals authorized to practise” on the AMF site www.lautorite.qc.ca, you can verify that the firm or professional you wish to do business with is authorized to act as an advisor and/or sell financial products.

raising_standards

If you cannot see the video, please click here.  

 

Ask firms why they hire investment managers with the CFA® designation after their names they’ll tell you it’s because of their commitment and professionalism. That those letters represent their proven understanding of everything investment management. And that they apply strict ethical guidelines to every decision they make on behalf of clients while simultaneously putting their interests first. What does all of the above translate to? It means employers rely on CFA charterholders to help raise the overall integrity and credibility of the entire organization.

Because, for charterholders and their employers, those three letters are making a real difference every day.

Find the professional your team needs

Institutional fund managers, private wealth managers, investment banks and brokers, consultants and service providers, and even non-financial firms and public sector entities recognize the advantages of hiring professionals who hold the CFA® designation.

CFA Montreal invites you to post your job offers on its website and benefit from weekly mailings to our members. Raise awareness about your business among high-calibre CFA® professionals who are active in the Montreal financial industry.

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