Financial Advisors and Insurance Representatives

In a recent decision from the Superior Court of Quebec, brokers and financial advisors are reminded about the "know your client rule". The mere fact that a client may agree to or request any order or investment, does not alleviate the financial advisor's various legal and contractual duties to provide adequate counsel, information, care and to act in the client's best interest. A financial advisor or broker may even have to advise against any given transaction contemplated by a client if it is not in line with the client's investment profil, portfolio and overall assets. Dussault v. Lévesque, Beaubien, Geoffrion inc., January 28, 2008. It should be noted that the "know your client rule" has been held to apply as well to insurance representatives or agents who are also governed by the Act respecting the distribution of financial products and services and by the Code of ethics of the Chambre de la sécurité financière. Dubé Légal inc., Montreal Civil and Commercial Litigation Lawyers.