The vast majority of financial advisors in Canada do not have a fiduciary duty to their clients. According the the Small Investor Protection Association (SIPA), 96% of financial advisors are simply commissioned salespeople. Meaning, they are not required to put their clients’ interests before their own.
A fiduciary duty is defined, in general, as the duty of a person to act in another person’s best interests. When it comes to investing, this means the actions of a portfolio manager like Inukshuk Capital Management must, under common law, always be in the best interests of our clients. Securities Legislation strictly imposes a fiduciary duty on registered portfolio managers. This means that because Inukshuk Capital Management is registered as an investment fund manager and portfolio manager with the Ontario Securities Commission (OSC) we must act as a fiduciary and put our client’s interests ahead of our own at all times.
We also have an obligation as Chartered Financial Analysts (CFA) under the policies of the CFA Institute. To maintain our charter we must agree to and sign the CFA Code of Ethics & Standards of Professional Conduct annually. The Code and Standards emphasize that the CFA’s clients’ interests always come first. Furthermore, Christopher Keeley, Inukshuk Capital Management’s Founder and Chief Investment Officer is a Certified Financial Planner. In this role he has an obligation to the Financial Planning Standards Council. In order to maintain his certification he must agree to adhere to the Standards of Professional Responsibility for CFP Professionals. This is a code of ethics, standards and practices that put client’s interests first to ensure they are receiving the best level of care in managing their personal finances.
What this means for our clients and Inukshuk Capital Management, is outlined by the OSC. As portfolio managers we must ensure that:
• Client interests are paramount,
• Conflicts of interest are avoided,
• Clients are not exploited,
• Clients are provided with full disclosure, and
• Services are performed reasonably prudently.
Inukshuk Capital Management is an independent investment manager fully committed to its role as a fiduciary to our clients.
