1. www.investinknowingmore.ca Investing 101 – Part 2 Working With Financial Professionals

2. www.investinknowingmore.ca Who am I and why am I here? NBSC –Crown corporation –Protect investors and foster capital markets Marissa –BBA (E-com) –6 years with the NBSC –I’ve made $$ mistakes too

3. www.investinknowingmore.ca Financial Advisers - Expectations What DON’T they do? –Predict market performance with certainty –Recommend investments that are always profitable –Act on vague instructions –Meet unrealistic goals What DO they do? –Make clear and specific recommendations –Explain the reasons for the recommendations –Point out the strengths and weaknesses of opportunities and recommendations –Outline the risks involved The term ’financial adviser’ includes: securities dealers; advisers; dealing representatives; advising representatives; or other registrants.

4. www.investinknowingmore.ca Financial Advisers – How to choose? 1. Decide what kind of help you need How much advice do I need? How experienced am I? How much am I planning to invest?

5. www.investinknowingmore.ca Financial Advisers – How to choose 2.Ask around Make a short list Check registration One size does not fit all!

6. www.investinknowingmore.ca Financial Advisers – How to choose 3. Set up a meeting Screen over the phone Meet in person Ask questions.

7. www.investinknowingmore.ca What to ask? Are you and your firm registered with the NBSC? Registration tells you: –The type of products or services they are qualified to sell or provide advice on. –That they are properly qualified and meet a certain standard.

8. www.investinknowingmore.ca What to ask? What products and services do you offer? –Specialized –Wide range What level of services can I expect? –How often will we meet? –How will you update me?

9. www.investinknowingmore.ca What to ask? How are you paid for your services? –Salary (built into the products you buy) –Commission (on products they sell) –Flat fee (hourly rate or % of assets) –Combination

10. www.investinknowingmore.ca Mutual Fund Fees Fees reduce your return –Sales Charges –Transaction fees –Account fees –Fund expenses A fund’s fees are described in the Fund Facts or Simplified prospectus disclosure documents

11. www.investinknowingmore.ca Top 3 Costs - Loads 1. Sales Charges (“Loads”)– charged when you buy or sell units or shares of a fund. 1. Front-end Load / Initial sales charge 2. Back-end Load / Deferred sales charge 3. Low load / Low sales charge 4. No load 5. Fee-for-services

12. www.investinknowingmore.ca Top 3 Costs - MER Management Expense Ratio (MER) –Measure of what it costs to operate a mutual fund (expressed as a % of the fund’s value) –Average 2.5% but varies depending on type of fund –The higher the MER, the more the fund will have to earn in order for you to make money

13. www.investinknowingmore.ca Top 3 Costs – Trailing Commissions Paid each year to the company that sold you the fund Reflected in the MER Ranges from 0.25% - 1.5% of the value of your investment each year

14. www.investinknowingmore.ca Your Responsibilities Be prepared Ask questions and take notes Be informed Stay up to date Keep your adviser up to date

15. www.investinknowingmore.ca What if I have a problem? Step 1: Do I have a complaint? –Not registered –Conducts transactions without your permission –Switches you from one mutual fund to another without legitimate reason –Recommends unsuitable products based on the information you provided

16. www.investinknowingmore.ca What if I have a problem? Step 2: Contact the adviser. –Clearly define the issue and outcome you expect –Gather all relevant documents –Keep notes Step 3: Contact the firm. –Follow their complaint process

17. www.investinknowingmore.ca Learn more! www.investinknowingmore.ca Facebook.com/4NBInvestors Twitter.com/4NBInvestors info@nbsc-cvmnb.ca 1 866 933-2222