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WHITBY FREE PRESS.WEDNESDAY, NOVEMBER 27, 1985, PAGE 11 Financial Planners a case of buyers beware Fears about the potential for fraud in the financial planning business are growing as fast as the industry it- Thousands of con- sumers - many of them middle income earners - are now turning to professional planners to their financial goals. Unfortunately, unethi- cal or inept advisors can easily lead clients down a trail of bad investmen- As of November 18,1985, VIA Rail operates on a new, improved schedule. Now, it's even right to the heart of downtown Toronto. Dp Toronto Ar F Locust Hill F Claremont F Dagmar F Myrtle F Burketon "We haven't had the abuses here that the Americans have had," says John Leybourne, deputy director of en- fnriment for the On- tario Securities Com- mission (OSC). "There are many fine financial planners operating in Ontario, but con artists and totally unqualified people could set up shop easily." Unlike most members of the financial services industry, planners are largely unregulated, its daily Toronto - Havelock service more convenient to take the train, Ex. Sat./Sun.* 8:30 a.m. 7:57 a.m. 7:47 a.m. 7:39 a.m. 7:33 a.m. 7:20 a.m. F Pontypool 1 7:07 a.m. F Manvers F Cavan Peterboroug h F Indian River F Norwood Ar Havelock Dp F Stops on signal * Will not operate December 25 For further information, see your Travel Agent or cali (no charge). Our phone lines are open 24 hours a day. VIA Rail at 1-800-268-9511 se l. help map out a path to ts. ..orce _dLI mi,*vie IMPROVED SERVICE TO Leybourne explains. They are not generally required to meet any licensing or testing standards. According to Leybourne, the key to protecting yourself is to know exactly what you're buying and who is selling it to you. Some planners work on a commission basis; making their money from the sale of various investment schemes. "These people have an obvious interest in selling you specific plans," says Leybourne. "Find out how a planner makes his money. If he's on commission and suggests you buy a par- ticular insurance plan, for example, check out competitor's prices and terms to be sure you're getting the best deal possible." Planning companies may also operate on hourly fees or com- binations of fees and commission. Shop around at a few different offices before picking an advisor and research the final choice carefully, Leybourne says. Aside from asking how the. planner is paid, find out how he used to make a living. "A good rule of thumb is that he or she should have had some ex- perience in the financial planning field and should also have logged several years as a securities dealer, mutual fund dealer, in- surance agent, accoun- tant or lawyer," Leybourne says. A local Better Business Bureau or the OSC may have infor- mation about the plan- ner's past business and investment activities. Stay away from anyone who "guaran- tees" profits from an investment or promises astronomical interest payments. Also be wary if a planner pressures you to buy a specific in- vestment product without suggesting alternatives. "He may be more in- terested in his com- mission than in your financial well-being," warns Leybourne. "And never sign up with a planner who operates on a shoe-string, with no of- fice staff or, worse, no office." It's safest to deal with someone recommended by friends, business colleagues, bankers or a trusted acquaintance. You should also ask for references from clients who have used the plan- ner's services for at least a year or two. No matter who you deal with, be sure you will get certain specific services for your money, including a clearly written personal financial plan showing your assets versus liabilities. The plan should give a projected cash flow statement covering at least one year. A precise definition of your finan- cial goals and the steps you will take to reach them should also be listed. SEE PG. 13 DOWNTOWN TORONTO 7:01 a.m. 6:49 a.m. 6:30 a.m. 6:10 a.m. 5:59 a.m. 5:50 a.rm. Canada's passenger rail network