How to find a financial adviser

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When it comes to specializing in investment advice, a portfolio manager typically has a higher level of fiduciary responsibility compared with a mutual fund salesperson or an insurance adviser, Heath said.

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Credentials such as chartered financial analyst (CFA) and chartered investment manager (CIM) can indicate competency in investing as well, Sheluk said.

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Where can I find a financial adviser?

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Besides online search or word of mouth, organizations can help you find a financial professional, depending on what kind of advice you are looking for.

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For example, at a bank or credit union, you can get advice on purchasing products such as term deposits or guaranteed investment certificates (GICs), or setting up a registered retirement savings plan (RRSP) or a tax-free savings account (TFSA).

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At an insurance company, employees are licensed to sell insurance-related products such as segregated funds and annuities.

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Stockbrokers and mutual fund dealers can help you buy or sell stocks, bonds or mutual funds, and can also help you open a registered savings plan.

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Cindy Marques, a Toronto-based, advice-only CFP at Open Access Limited, said a financial adviser who works at a financial institution, such as a bank, is more likely to recommend in-house products or be incentivized to offer certain products, compared with professionals at independent firms. But if your assets are already housed under one financial institution and you have had a good experience with its investment products, a bank adviser may be a good choice, she said.

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The FP Canada website features a directory where you can search for financial planners by name, organization or location and provides additional information about what each professional specializes in, along with their other credentials.

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What questions should you ask when choosing an adviser?

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One of the most important questions to ask a financial adviser is whether they can support your specific needs, whether that involves managing cash flow, paying off debt or building your wealth through investments.

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Depending on what kind of financial professional you’re looking for, you should be asking whether they can provide tailored advice to cover all aspects of your financial life or if they specialize in specific areas.

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Industry experts also recommend delving further to ensure an adviser is the right fit for you.

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Ask financial advisers or planners about their background and how long they have been providing these services as a starting point, said FSRA chief consumer officer Stuart Wilkinson.

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Beyond inquiring about a professional’s credentials, ask them what each credential means and what specific services or advice it allows them to provide, said Marques.

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Ask about the prospective adviser’s cost structure, as this can vary widely. Some professionals operate on commissions through products they sell you, while others offer a fee-based model, where they receive a percentage of assets managed. Sheluk said fee-based advisers can charge as high as 2.5 to three per cent for smaller portfolios, whereas this can drop to about half a per cent for larger portfolios.

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Heath emphasized the importance of requesting full transparency, especially with a financial adviser who works on commission. For example, if a financial adviser encourages investing in proprietary mutual funds from a specific bank, you should be fully aware of what is incentivizing them to make these recommendations and only get on board if it’s the right financial decision for you, he said.

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Marques also suggested asking whether the adviser receives any referral fees from other financial professionals, in case they need to refer you to someone else for specific advice they cannot provide themselves.

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It is key to get a sense of the financial adviser’s personality and how they respond to you, Sheluk said. You should be “looking for somebody that is interested and prioritizes learning a lot about you as the individual, and your goals and objectives.”

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