The Canadian Securities regulators have amended our regulatory obligations including those related to conflicts of Interest; Therefore, we are updating our relationship disclosure information to you. The following is intended to be informational and not contractual.
Planmar Financial Corp. (“Planmar”) takes steps to identify material conflicts of interest that are reasonably foreseeable and that may arise between you and our firm or between you and each individual acting on our behalf as an Advisor. We will respond as appropriate to each such conflict of interest by avoiding, or controlling and then disclosing it to you.
A conflict of interest is considered material if the conflict may be reasonably expected to influence either a client’s decision or Planmar’s or its Advisor’s recommendations under the circumstances.
Should any additional material conflicts of interest be identified after account opening, we will inform you in a timely manner.
Nature of this conflict: Planmar and its Advisors are compensated by third party mutual fund providers. Different products generate different compensation. Your Advisor may be tempted to sell you funds which pay a higher commission.
Potential impact on you: You may not receive the investments that are best suited to your needs.
How we plan to address this conflict of interest: This office works diligently to meet our regulatory compliance guidelines.
We will ensure that all investments provided to you are suitable. All fees and any other costs will be disclosed to you on a pre-trade basis through such documents as “Fund Facts”.
Gifts and Entertainment
Nature of this conflict: Advisors receiving gifts or entertainment from clients.
Potential impact on you: This could compromise or give the impression that these clients are requesting preferential treatment or compromising the independence of the Advisors.
How we plan to address this conflict of interest: Planmar has adopted internal policies and procedures that exceed regulatory requirements, including policies regarding gifts and entertainment. We track such gifts and entertainment received by Advisors and we prohibit Advisors from accepting compensation, other than in nominal amounts, from any person unless the Advisor obtains prior approval from our supervisory staff. Excessive gifts by way of material goods or entertainment are not permitted.
Leveraging to Invest
Nature of this conflict: The Advisor will receive compensation when a client decides to use leverage for the purpose of investment.
Potential impact on you: Leveraged accounts allow the client to dramatically increase the potential for return on the investment. However, leveraging also dramatically increases the potential for loss if the investment decreases in value. Your Advisors may feel inclined to offer leverage to increase the assets in their book, but this may not be suitable for you.
How we plan to address this conflict of interest: We fully review, with our clients, their financial status (income and net worth and tolerance for risk) to ensure that they can afford and are reasonably comfortable with the idea of a potential loss. We wish to protect against having to sell your investment at loss to pay off the loan.
Personal Financial Dealings
Nature of this conflict: Borrowing from and lending to clients may raise a significant and direct conflict of interest as the line between the advisor and client becomes blurred.
Potential impact on you: The advisor may focus more time on one client over another.
How we plan to address this conflict of interest: Advisors are not allowed to become involved with clients on an individual basis; for example, where an Advisor is making decisions on behalf of an investment club.
Powers of Attorney, Executors and Trustees
Nature of this conflict: An advisor may be tempted to act to his own betterment rather than that of the individual, the Estate or the beneficiaries.
Potential impact on you: There may be a reduced financial benefit to the individual, the Estate or the beneficiaries.
How we plan to address this conflict of interest: Advisors are not permitted to be Powers of Attorney, Executors or Trustees unless they are acting on behalf of a parent, spouse or child.
Nature of this conflict: Advisors being compensated for referring clients to third parties for financial products.
Potential impact on you: an advisor, in order to receive compensation, may refer you for a financial product which is unsuitable.
How we plan to address this conflict of interest: We confirm that any such referral will be in your best interest. Before those referrals are made, they are reviewed and approved by our supervisory staff to ensure that the product is suitable for you and that the compensation to the Advisor is reasonable. You will be kept informed.
Nature of this conflict: Advisors engaging in employment outside of Planmar.
Potential impact on you: clients may feel pressured to deal with an Advisor based upon the Advisor’s level of Influence outside of Planmar. Examples of positions of influence include, but are not limited to:
1) A leader in a religious or similar organization
2) Medical doctor
4) Professor, instructor, teacher
7) Elder caregiver
How we plan to address this conflict of interest: Our policies require that all Advisors obtain prior approval from our supervisory staff, pursuant to our Code of Ethics, before participating in any outside activity. We are responsible for approving/ monitoring and disclosing said activity so that it doesn’t interfere with the Advisor’s ability to properly service our clients. Where required, clients will be provided with such disclosure. This is done so that any actual, potential or perceived conflicts of interest can be avoided.