In a recent decision, the Ontario Securities Commission (OSC) found that well-known Canadian financial author and broadcaster Brian Costello contravened the Ontario Securities Act by failing to become registered as an advisor prior to recommending investments. The OSC also ruled that "his failure to make full, complete and conspicuous disclosure of his many conflicts of interest was contrary to the public interest."

Costello earned money recommending real estate partnerships and other high risk investments to consumers who subsequently lost thousands in life savings.

Canadians who rely on investment advice from highly visible, media-acknowledged "expert advisors" have been misled in the past and will continue to be so since these "credentials" do not guarantee unbiased information. This recent public scandal makes those attempting to sort out RRSPs, REITs and other real estate and financial investments painfully aware of their vulnerability.

Real estate professionals work in agency relationships with clients and, therefore, owe consumers a complex set of fiduciary duties that put the client's interests first. This is not the case for most financial advisors. The majority of financial advisors are paid by their employer - either by salary, commission or both - to sell that company's services or products. This bias is reflected in the advice they provide. Given a choice, consumers should seek out and pay for financial advice from an independent advisor.

Consumers who do not hire fee-for-service financial advisors can reduce the impact of this bias by using a small network or circle of financial contacts instead of relying on one source of information. Differing points of view will help investors get a clear picture of a service or product, relative to their needs and goals.

The following exercise from my personal strategic planning book, The Actionbook: Financial Strategies for Your Future, will get you started on your financial network.

Actionsheetİ - Questions to ask when selecting a financial advisor

These questions will assist you in preparing for and assessing an interview with a potential advisor. You may want to tape-record some meetings and go over the material again to be sure you really understand what to expect from a specific professional.

Published: February 25, 2003

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Futurist and Strategist PJ Wade is "The Catalyst" -- intent on "Challenging The Best Become Even Better." PJ earned this title by translating the dynamic impact of Boomers and their multi-generation families into relevant insights that start people thinking and taking action—in business and in life. Author of 7 books and more than 1600 published articles, PJ encourages individuals to become their own futurist. PJ writes and speaks about the insight, knowledge and solid decision-making skills that professionals and their clients need to live and work in this vortex of change. For instance, since PJ knows that home is headquarters for the new decades-long "unretirement," she wrote the popular book "Reverse Mortgages: Best Friend, Worst Enemy... Your Choice! (CatapultPublishing.com), which is filled with suggestions and insight on protecting and using home equity. Her new business book, "What's Your Point?," which identifies 7 common mistakes professionals unknowingly repeat to their detriment, will be published in 2009. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently-quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more on blogs, books and topics, visit TheCatalyst.com.