It’s a fair question – and an important one. Your assets are protected through one of Canadas most established and regulated investment dealers, with industry leading safeguards, oversight and insurance coverage.
Overseen by CIRO
Held with approved custodians
Covered by CIFP
STARK PRIVATE WEALTH
It’s a reasonable question. When you entrust someone with your life savings, you should understand exactly how the relationship works.
As Stark Private Wealth, your investments arent simply sitting in our office or held by us personally. Your advisor,dealer,custodian and investment products each have distinct roles within the structure of your portfolio.
Trust matters. But your financial security shouldn’t depend on trust alone. Your investments operate within a broader structure involving your advisor, the dealer, the institution holding your assets and the regulatory framework governing the industry.
Each has a different responsibility. Each creates another point of accountability.
Personal Advice - Your advisor is the person you know and work with directly. We take the time to understand your goals, build your financial strategy and provide ongoing investment advice.
Dealer Oversight - Your advisor is the person you know and work with directly. We take the time to understand your goals, build your financial strategy and provide ongoing investment advice.
Your assets are held through our custodian, Computershare - not by your advisor. This creates separation between the advisors advice and the institution responsible for holding the assets.
The investment industry operates within a regulated framework. Dealers and registered individuals are subject to rules, supervision and regulatory requirements designed to protect investors and promote fair dealing.
No single person or organization is responsible for every part of the investment relationship. Advice, dealer supervision, asset custody and regulatory oversight operate as distinct functions within a broader structure designed to support your security.
There is a lot that goes into selecting an advisor and a large part of that relationship revolves around working with them to manage or help manage your investment portfolios.
Before we talk about your wealth, it helps to understand a few important questions about where your money actually goes.
Your investments are held in your own investment account through Portfolio Strategies Corporation (PSC), the investment dealer that provides the brokerage and administrative infrastructure behind your account. PSC is an independent Canadian investment dealer and provides access to a broad range of investment products.
Stark Private Wealth manages your portfolio and provides the advice. PSC provides the dealer platform, account administration, transaction processing and custody arrangements associated with your investments. Your assets are not simply held by Stark Private Wealth itself.
For registered accounts such as RRSPs and TFSAs, trustee and custody arrangements may involve specialized trust companies such as Computershare Trust Company of Canada, depending on the account and investment structure. Computershare provides registered-plan trustee services to investment firms and mutual fund dealers in Canada.
The important distinction: you own the investments in your account. Stark Private Wealth advises and manages your portfolio; PSC provides the dealer infrastructure; and the applicable custodian/trustee holds or administers the assets according to the structure of your account.
Portfolio Strategies Corporation (PSC) is the independent investment dealer behind your account. Founded in Calgary in 1994, PSC is a privately owned Canadian firm and a member of the Canadian Investment Regulatory Organization (CIRO). PSC is registered as a Mutual Fund Dealer and Exempt Market Dealer and provides the infrastructure through which independent advisors serve their clients.
PSC provides the dealer platform, account administration, transaction processing, compliance oversight and access to a broad range of investment products including mutual funds, ETFs, GICs, high-interest savings products, liquid alternatives and certain private-market investments.
The important distinction is that PSC and Stark Private Wealth have different roles. Stark Private Wealth provides your personalized financial advice and portfolio management, while PSC provides the regulated dealer infrastructure that supports your investment accounts.
PSC currently reports more than $5.4 billion in assets under administration and more than 260 advisors across Canada, giving independent advisors access to the resources of a large dealer while maintaining the flexibility of an independent practice.
Your investments are subject to several layers of protection.
Your portfolio is currently invested in mutual funds and ETFs, rather than being held as cash or as proprietary investments of Stark Private Wealth. Your accounts are administered through Portfolio Strategies Corporation (PSC), a CIRO-regulated investment dealer and member of the Canadian Investor Protection Fund (CIPF).
CIPF provides protection if a member firm becomes insolvent and eligible client property is missing. For an individual, coverage is generally up to $1 million for all general accounts combined, another $1 million for registered retirement accounts such as RRSPs and RRIFs combined, and another $1 million for RESPs. Mutual funds and ETFs held by a CIPF member on behalf of an eligible client are eligible for this protection.
It is important to understand what this protection does—and does not—cover. CIPF does not insure you against normal investment losses, market declines, poor investment performance or a decline in the value of a mutual fund or ETF. It protects eligible investment property if it is missing because of the insolvency of the dealer; it does not guarantee the value of your investments.
In addition, CIRO establishes and enforces regulatory requirements for investment dealers and mutual fund dealers, including rules designed to protect client assets and promote fair treatment of investors.
What CIFP Protects: Dealer insolvency – If an eligible member firm becomes insolvent and client property is missing, CIFP may provide coverage within prescribed limits.
What CIFP doesn’t protect: If an etf or mutual fund falls in value because markets decline, that investment loss is not covered by CIFP.
Your investments are held within a regulated Canadian investment system with multiple layers of oversight and protection.
Portfolio Strategies Corporation is regulated by the Canadian Investment Regulatory Organization (CIRO). CIRO sets and enforces rules governing investment dealers, mutual fund dealers and their representatives, including requirements around financial strength, compliance, conduct, suitability and client protection. CIRO also conducts compliance examinations and monitors the financial condition of its member firms.
PSC is also a member of the Canadian Investor Protection Fund (CIPF). If a member dealer becomes insolvent and eligible client property is missing, CIPF can provide protection within prescribed limits. Mutual funds and ETFs held by a CIPF member on behalf of an eligible client are among the securities that can qualify for CIPF protection.
These protections are not a guarantee against investment losses. If markets decline and your mutual funds or ETFs lose value, neither CIRO nor CIPF replaces that loss. CIPF’s role is principally to help return eligible client property when it is unavailable because of the insolvency of a member firm.
Your money remains under your control.
As your advisor, I can provide investment advice and, where properly authorized, place investment transactions on your behalf. However, I cannot simply withdraw your money for myself or transfer your assets to another account without the appropriate authorization and dealer procedures.
CIRO rules place restrictions on an advisor having control or authority over a client’s financial affairs. Investment instructions and transactions are also subject to authorization and recordkeeping requirements.
Withdrawals and transfers are processed through Portfolio Strategies Corporation (PSC), the dealer on your account, using the appropriate account documentation and verification procedures. Your advisor does not have unrestricted access to your account simply because they manage your investments.
In practical terms, I can help you decide what to buy, sell or withdraw, but the money ultimately belongs to you. You remain the account holder and control when and where your assets are withdrawn, subject to the normal rules and requirements of your account.
Your investments don’t leave with your advisor.
Your account remains with Portfolio Strategies Corporation (PSC), the dealer responsible for administering and supervising your account. If an advisor leaves, PSC has procedures to ensure that client accounts continue to be serviced and that clients are informed of changes to their representative.
You are not automatically required to follow your advisor to another firm. If your advisor moves to another dealer, you can choose to remain with PSC, move your account to your advisor’s new firm, or select another advisor or firm altogether.
The important point: your relationship with your advisor and your ownership of your investments are separate things. If I were to leave Stark Private Wealth or PSC, your investments would remain in your account while the appropriate servicing arrangements are made.
You should always be able to see what you own and what is happening in your accounts.
Portfolio Strategies Corporation provides clients with MyPortfolio, a secure online portal where you can access your investment account information and statements. You can register for online access and choose to receive your statements electronically, with a notification when new documents are available.
PSC also provides quarterly account statements showing your account balances and transactions. Each year, you receive an Investment Performance Report and a Charges & Compensation Report, providing additional transparency around your investment performance and the costs associated with your account.
Your statements come directly from the dealer—not just from your advisor. This gives you an independent record of your holdings, transactions, performance and account activity.