Gifts with strings attached are not really gifts

The notion of a true gift is that it is an act of generosity, or love and caring. There are no strings attached. Gifts from investment companies come with two faults. The first is that they come with an expectation of loyalty. The second issue is about who is paying for the gift. In our mind, accepting gifts from investment companies inflates our clients’ costs. We want no part of that and have written to them stating that.

The recent Globe and Mail article below reflects what occurs in parts of the investment industry today. Although the regulators continue to work toward putting polices and penalties in place to discourage this kind of behaviour, it continues unabated.

“The more advisors decline gifts from investment companies, the better our industry will become.” – Stuart Kirk

It is important to know that our policy at Precision Wealth Management is to not accept any gifts from any investment companies under any circumstances regardless if we do business with them or not. We have simply determined that accepting of any gifts can lead to a conflict of interest, or the perception of a conflict of interest. Instead, we have asked all the investment managers we deal with to allocate this budget to lowering client fees. Our wish is that in the future fewer companies offer gifts and more advisors decline them. This can only make our industry better.

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