The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

e may finally be moving towards the end of hidden fees paid by many mutual fund investors. How could this have taken so long? For over a decade this column has consistently criticized mutual fund fees. Next year, new disclosure rules by the Ontario Securities Commission could correct this situation. People realize that all things have a cost; however, many do not realize there is a hidden fee that is deducted from their mutual fund holdings on a regular basis. Those fees are paid for as long as you continue to hold the fund. This is referred to as a "trailer fee." The intent is that the fee is paid to your investment advisor for ongoing financial services. That may be fair compensation for some, but a gift to others who are not adequately servicing their clients' accounts. Hidden fees may soon be coming to an end W Dollars & Sense It is time that all investors have a fee conversation with their advisor. The proposed fee disclosure proposal by the Ontario Securities Commission will help the financial services industry to evolve. You might want to take the lead and bring up this important matter with your advisor By Peter Watson 11 · Thursday, August 23, 2012 OAKVILLE BEAVER · www.insideHALTON.com during your next meeting. Fees affect your ultimate return. It is a cost of doing business. Your fees should be disclosed and they should be fair. -- Submitted by Peter Watson, MBA, CFP, R.F.P., CIM, FCSI. "It is my belief that hidden fees have not allowed the consumer to fully understand how high the fees truly are and how to go about finding lower cost alternatives." Peter Watson The problem is that the investor is often unaware the advisor is being paid a trailer fee. We need to be aware of the costs of our purchases and make our own decisions about the value we receive for the free enterprise system to work effectively. Businesses lose customers when products are too expensive relative to their value. It is ongoing competition with full cost disclosure that keeps our market place functioning efficiently. The investment industry's structural problem is evident when the consumer is not aware of the full cost of the investment. As a result they cannot determine whether the service is worth the money. Mutual fund assets have grown significantly during the past decades and are now close to $800 billion. It is my belief that hidden fees have not allowed the consumer to fully understand how high the fees truly are and how to go about finding lower cost alternatives. The fee structure established by many mutual funds 40-50 years ago has not changed that much since those early days when the industry was only a fraction of its current size. It is normal for costs to decrease as a business grows. These economies of scale have not lowered the costs. Our hidden fees have resulted in Canadians having some of the most expensive mutual funds in the world. Disclosure will bring about awareness of high fees. Investors will learn how these fees are charged and seek out information on the alternative options available to them such as a feefor-service arrangement. In a fee-based arrangement, you, together with your investment advisor, agree upon a fair fee for the services provided. It will appear on your investment statements so you can easily monitor that fee against the ongoing value of the service. A fee-for-service cost will likely be lower than the current mutual fund fees, which are expensive. As an added bonus, for non-registered accounts the fee may be used as an income tax deduction. You have a business relationship with your investment advisor so discussions about cost, as with the purchase of any goods or services, should be standard. Follow Oakville Beaver staff on Twitter @OakvilleBeaver or @NewsHooked @DavidLea6 @DominikKurek @Beaversports or @Halton_Photog Better hearing g starts this summer! For a limited time, get up to 40% off ff the th llatest t t state-of-the-art t t f th t hearing aid technology and get started on a summer of better hearing. Call or visit our Oakville Hearing Solutions clinic during our Friends & Family Event and take advantage of our best deal of the year! Buy 1, Get 1 Free (1st Visit) Massage Therapy, Acupuncture, Acupressure, Massage Therapy, Acupuncture, Acupressure, Reflexology * Back/ Neck Pain · Tension / Muscles Spasm · Headache / Whiplash · Sciatica · Pregnancy-related Reflexology Relief Rehab Relax * Joints Pain / Arthritis · Elbow, Wrist, Frozen shoulder · Knee, Ankle · Osteoarthritis · Rheumatoid Arthritis 1395 Abbeywood Drive, Unit 14. Oakville, ON Unit L6M 3B2 1395 Abbeywood Drive, 14, Oakville 905·827 ·9968 Tel: 905-827-9968 | Email: mingrmt@hotmail.com *See clinic for details * Sports / Work place Injuries · Acute / Chronic · Sprain / Muscles Tears * Chronic Disease · Stress / Anxiety / Depression · Sleeping Trouble · HBP (High Blood Pressure) · Heart Failure / Chest Pain · Diabetes / Edema (Swelling) · Weight disorder