The Capital Markets Authority (CMA) oversees the Registered Persons who buy, sell, and manage securities traded in the market. We strive to protect investors from unfair, improper and fraudulent practices while fostering a fair and efficient marketplace.
Choosing a Registered Person to help you in your investment requests a big decision. They will help you set financial goals, choose investments and track your progress.
HERE’S WHAT TO ASK
1. ARE YOU REGISTERED?
Registration helps protect investors because securities’ regulators will only register firms and individuals if they are properly qualified. Firms and individuals are registered by category – each category has different education and experience requirements, and permits different activities.
2. WHAT IS YOUR BACKGROUND?
You want someone who is qualified and has the right experience to give you the help you need. Ask questions like:
> What are your educational and professional qualifications?
> How long has your authorized institution been in business?
> How long have you been with the authorized institution?
> How long have you worked in the industry?
3. HOW ARE YOU PAID?
Registered Persons can be paid by salary, commission, a flat fee, or a combination of these methods.
If a Registered Person is paid by salary, the cost of their advice is built into the products you buy. Some advisers are paid a commission for every product they sell. Other advisers charge a flat fee based on an hourly rate or a percentage of the assets in your account. Find out how much their service will cost you and what services you’ll get for your money.
4. WHAT KINDS OF PRODUCTS AND SERVICES DO YOU OFFER?
Not all Registered Persons offer the same products and services or have the same expertise. Some specialize in certain kinds of investments. Others can offer you a wide range of investments and services.
If you’re an experienced investor, you may want a Registered Person who offers a wide range of products and lets you choose. If you’re newer to investing, you may be more comfortable with fewer choices and more guidance from them.
5. HOW WILL YOU HELP ME REACH MY GOALS?
The Registered Person should ask about your financial goals and investment objectives.
> Are you mainly looking for safety, income or long-term growth?
> Are you saving for something specific, like retirement?
> The Registered Person will also ask about your financial situation, investment knowledge and experience, and risk tolerance. This information may seem personal, but it helps them make the best recommendations for you.
Make sure the Registered Person asks for this information and to provide you with a copy. You should also let them know whenever your personal or financial situation changes so they can update this information.
6. WHAT LEVEL OF SERVICE CAN I EXPECT FROM YOU?
You should discuss this with the Registered Person up front. Ask questions like:
> How often will we meet to review my financial plan?
> How will you update me on the performance of my investments?
> How quickly will my phone calls and e-mails be returned? Will they be returned by you or by support staff?
7. MAKING THE MOST OF THE RELATIONSHIP
Think of your relationship with your Registered Person as a partnership, with both of you working to achieve your financial goals.
You’ll want to keep the lines of communication open and meet at least annually. Ask questions when you don’t understand something.
Be honest with yourself and with the Registered Person about your financial situation. They need accurate information to recommend the best investments for you.