Duties of the financial advisor

Question 1

Duties of the Investment advisor ?

Answer 1

1. Inform: client on markets
2. Advise: recommends operations to client
3. Execute: buys and sells for the client

Question 2

What are the 3 roles of the IA ?

Answer 2

1. Agent: a specialized agent who executes orders for his client with his expertise, for a commission
2. Professionnal:
   - Offers services of particular competency and knowledge
   - Acts with high degree of independence
   - Develops his own code of conduct
   - Submits to disciplinary powers
   - Acts in public interest.
3. Fiduciary:
   - Person to who funds are entrusted
   - Act with Competency, Diligence and Good Faith
   - Avoids conflicts of interest
   - Protects Confidentiality

Question 3

What are the CSI standards of conduct of an IA ?

Answer 3

1. Duty of care
2. Trustworthyness, honesty and fairness
3. Professionalism
4. Conduct in Accordance with the Securities Act
5. Confidentiality