How to Double Check a Client's Onboarding

Onboarding is learning a lot about the client. Ask them what they understood just to confirm that the communication has been effective. If you've embedded a question and they followed up with you, check, they must have read to there.

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Our guest today, Harold Gellar, is a lawyer who helps clients dealing with fraud and negligence perpetrated by financial advisors, and is a passionate advocate for investors and their rights. Tuning in you’ll hear details of some of the most common issues Harold has come across in his work, along with his practical advice for financial advisors and investors. We discuss the importance of clear communication between advisors and their clients, the concept of KYC (Know Your Client), and simple steps investors can take to ensure that their advice is properly understood by their clients. Harold goes on to provide an outline of factors that could make individuals vulnerable to negligent financial advice (such as marital problems or a sudden health crisis) and how to gain perspective in extreme situations. We also discuss the key differences between salespeople and financial advisors, the type of credentials investors should be looking for, and how regulation needs to be modernized in Canada for investors to be properly protected. Harold has been in this industry for a long time and is immensely knowledgeable on the subject of fraud and negligent investment advice.

Key Points From This Episode:

An overview of Harold’s practice and how he helps clients get their money back. (0:03:22)
The difference between salespeople and financial advisors and the vulnerability of investors. (0:05:40)
Practical advice for investors to ensure their financial advisor is doing due diligence and the concept of KYP (Know Your Product). (0:10:46)
The concept of KYC (Know Your Client) and how to be sure your financial advisor understands you as a client. (0:15:32)
The type of individuals who are particularly vulnerable to negligent financial advice, and why we can all be vulnerable in certain situations. (0:18:33)
The role of the trusted contact person in Canada specifically, and how to know when to take the advice of your financial advisor. (0:25:13)
Harold’s thoughts on what is causing Canada’s slow adoption of low-cost index funds. (0:32:27)
How financial advisors earn money and why we need an updated regulatory system. (0:34:21)
Harold’s approach to crypto and why he classifies it as a speculative asset. (0:41:50)
Examples of negligence when the investment made was too conservative and why clear communication between client and advisor is crucial. (0:44:20)
The worst insurance products that Harold has come across. (0:46:10)
What financial advisors should be doing to make sure that their advice is properly understood by their clients. (0:49:23)
What investors can do to make sure that they understand what the advisor is saying to them. (0:51:16)
Ontario’s recent implementation of title regulation for financial planners and advisors and some of its key flaws. (0:52:16)
The credentials that investors should expect from their financial advisors. (0:55:34)
The value of good advice when it comes to financial planning and investment, and what motivates Harold to be such a strong investor advocate. (0:56:56)