The Professional Financial Advisor: Ethics, Unbundling and Other Things to Ask Your Financial Advisor About

Janet Arnett is the former campus manager of adult education at Ontario’s Georgian College. She is the author of Antiques and Collectibles: Starting Small, The Grange at Knock, and 673 Ways to Save Money.

Professionals make their money by charging for their advice. Salespeople
make their money by charging a commission on the products they advise
people to buy. In the financial world, which involves stocks, bonds,
mutual funds, insurance, etc., can the two be separated? Can the lofty
label of professional ever be justified for people who stand to
personally gain from the advice they give? Can the consumer ever fully
trust the advice of someone who makes a living by advising the purchase
of specific products?

De Goey explores this ethical issue at the heart of this industry: How
should financial advisors be paid? He looks at the complication of
“unbundling” —that is, separating product from product
compensation—and at how implementing such a change would cause
ripples, or possibly shock waves, throughout the financial services
sector.

Much of the book is given over to introducing and explaining the world
of financial service providers, including education, variations in
employment arrangements, licensing, financial counselling practices,
and, yes, ethics. Comparisons to other professionals, especially doctors
and dentists, are used to cut through the mystery to the familiar,
making the many lessons more easily understood.

While not light reading, the book should be mandatory for anyone
planning a career in financial services or who makes extensive use of
the services of a financial service provider.