Friday, June 24, 2011

Short Takes: Proposed New Financial Advisor Reporting Rules, 4-Letter Financial Words, and more

Rob Carrick reports that Canadian regulators issued proposals to make investment dealers and advisors give investors two critical pieces of information: the dollar cost of fees and commissions and your personal rate of return. This sounds like a great development to me.

Money Smarts isn’t as optimistic that these new disclosure rules would help investors much. I’m more optimistic, but I would be happy with this change even if it only makes a small difference.

Scott Ronalds at the Steadyhand Blog bemoans the fact that (mutual) “fund” has become a dirty word and predicts that the same fate awaits other 4-letter words like bond, debt, and gold.

Larry MacDonald has 20 reasons for ending Canada Post’s monopoly.

The Blunt Bean Counter explains how CRA applies penalties for failing to report income: two strikes and you’re out.

Canadian Couch Potato explains how Claymore’s Advantaged ETFs are structured. It’s amazing how clever people can find ways to reduce tax burdens.

Preet Banerjee explains why it is difficult to rotate your money from one dividend-paying stock to another in an attempt to capture all the dividends.

Canadian Capitalist reports that PowerShares has added 6 new ETFs to the increasingly crowded ETF space in Canada.

Retire Happy Blog answers the question of how much debt is too much by explaining debt servicing ratios as well as signs of debt problems.

Million Dollar Journey looks at the income of members of the Royal Family and the sources of their income.

Big Cajun Man has an amusing list of the top 5 reasons why you are in debt. You’ll notice a pattern.

8 comments:

  1. Thanks for the inclusion, enjoy your water flow this weekend

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  2. The Blunt Bean CounterJune 24, 2011 at 7:58 AM

    Thanks for the cite: Just a ridiculous provision that provides for a potentially massive penalty if you miss reporting one cent of a slip and than have another occurence.

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  3. I do think the disclosure proposals are a great development, but we won't know the impact for a while. It could take up to three years to implement and we also don't know what the final rule will be.

    It could get watered down a lot.

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  4. @Mike: The proposed rules seem so good that big efforts to water them down are inevitable.

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  5. Thanks for the mention. New disclosures won't do much IMO.

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  6. Thanks for the mention, and have a great weekend.

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  7. Thanks for the mention. Seems to have struck a nerve with some investors.

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  8. Hi Canajun,

    Great Article! Recently, the Canadian Securities Administrators put out a proposal calling for the performance of investments and fees related to investments to be posted on financial statements. We were wondering if you thought this would be a good idea. Take a look - http://blog.getsmarteraboutmoney.ca/index.php/csa-proposal-investor-fees-performance

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