In Canada, not everyone can be a financial advisor. There are courses to take, exams to pass, and then you have to sign up with (become sponsored by) a dealership. Beyond that, the dealerships are overseen by the SRO (self regulatory organizations) which is in turn overseen by the individual provincial securities regulators.
Each level of oversight provides protection for the investor by various means, and although this doesn’t mean that fraud is eliminated entirely, it is certainly reduced because of it.
There are investor insurance pools against default (CDIC, IPC,CIPF). These funds provide significant individual coverage against investor loss due to bankruptcy and/or insolvency of the dealers and product providers. Please see their respective websites here, and they are also posted in my links section on the right. The coverages vary, so look into the details for each that apply to you.
Investor protection:
CIPF
IPC
CDIC
Government bodies:
Ontario Securities Commission
Financial Services Commission of Ontario
Robust complaint handling processes are enforced through dealerships and product manufacturers right up through the provincial ombudsmans office.
It is frequently overlooked by investors that the markets have pricing risk; there is no one to complain to if the price of what you own goes down. No insurance protection against normal losses. These structures are set up against fraud and insolvency.
