The thing we’re told most often about alternative investments is the importance of due diligence. The complexity of these products is such that advisors put themselves and their clients in a vulnerable position if they make poorly researched recommendations.

This is somewhat counterintuitive, given the value many of these products offer from a risk management perspective. But their complexity — and in some cases their lack of transparency — makes them a poor fit for many investors.

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The Office of the Taxpayers’ Ombudsperson reviewed the CRA’s administration of bare trust filings and the Canada Child Benefit for temporary residents, finding issues with unclear communication, lengthy processing times and unnecessary payment interruptions.

Morningstar’s new global study finds investors favour newly launched funds with frequent portfolio disclosures and those managed by CFA holders or women, preferences that tend to align with stronger future performance.

A former GlobeNewswire developer, Harpreet Saini, was fined $1.4 million and sentenced to six months in jail after pleading guilty to insider trading, having made US$770,000 trading on confidential information. The Ontario Securities Commission also imposed a 10-year trading ban; charges against co-defendant John Natividad are still before the courts.

AI-powered planning software is revolutionizing the advisory industry by boosting efficiency and consistency, but firms must also invest in developing advisors’ human skills like empathy and judgment to truly succeed. The future of advice depends on balancing advanced technology with deeper, trust-based client relationships.