10 questions to ask before choosing a financial advisor

How to use these questions

Choosing someone to advise you on a mortgage, insurance or investments is an important decision, yet it is often made in a few minutes, on the strength of a recommendation or an advertisement. These ten questions slow the process just enough for you to stay in control.

You do not have to ask them all in order, or play the interrogator. Print the list, bring it to the meeting and tick off the answers you get. A serious professional will find the approach normal and answer without discomfort.

Also note how you are answered: clear, patient and verifiable replies are a good sign; evasive or rushed ones, or ones that turn the question back on you, deserve a pause.

These questions do not replace the AMF register, which remains the basic checking tool. They complete it by letting you understand how the person works.

Disclosure: CompareTaux is in the tenth question

CompareTaux publishes this article and appears in the tenth entry, the one answering “Where do I start?”. We say so you can take it into account.

The first nine questions concern no service in particular: they apply to anyone who proposes a financial product, including a person you found without us. The tenth describes what CompareTaux does, and only that.

CompareTaux is not an advisor. It routes a mortgage, insurance or investment request to an authorized person registered with the AMF. It shows no rates and makes no automatic decision.

You can therefore use the ten questions with any authorized person, whether they come from us, from your circle or from the public register.

1. Are you authorized to advise me on this product?

In Quebec, you cannot offer just any financial product without being authorized. Practice categories differ: a person may be registered for life insurance but not for investments, or the reverse. The title on a business card is therefore not enough.

Ask for the full name, the licence number and the practice category, then check them in the AMF’s public register. The search is free, quick and requires no sign-up on your part. The register also shows the firm the person works for and, where applicable, any related restrictions or sanctions.

When to ask: from the first contact, before handing over detailed personal information.

Practical tip: do the check live, during the call or meeting, or right after. If the category does not match the product being discussed, ask why before going further.

2. How are you paid?

Pay shapes an advisor’s work, as it does for any professional. It can take several forms: a commission paid by the lender or insurer, fees paid directly by you, a salary, or a combination.

No method is bad in itself, but each has effects you need to know. A commission may be invisible to you even though it is part of the product’s cost; fees are visible but add to your budget.

When to ask: before receiving a recommendation, so you can read it with full knowledge.

Practical tip: ask the person to explain, in their own words, who pays them and when. The answer must be clear, complete and verifiable. If it seems vague, ask again in writing. Someone who works transparently will see no problem and will answer without detours.

3. Does your pay vary by product?

This question goes one step further than the last. Even with a known pay method, the amount paid can depend on the product chosen, the lender or insurer selected, or the length of the contract. This is what is called a potential conflict of interest: the person may have an interest that differs from yours.

A potential conflict is not a fault. It is common and regulated, and authorized people have obligations about it. But you have the right to know it exists.

When to ask: after getting the answer to the second question, before comparing options.

Practical tip: phrase the question concretely. For example: “If I choose option A rather than option B, does your pay change?” If so, ask how that may influence what you are proposed and how the person manages the situation. Note the answer; it is part of your file.

4. Which products or lenders do you compare?

Authorized people do not all work with the same providers. Some represent a single company; others have access to several lenders, insurers or investment firms. Neither is bad, but it changes the scope of the comparison.

Someone who compares several options should be able to name them, explain how they are selected and say which providers they do not offer. A single brand is a choice worth knowing about: it is perfectly legitimate, as long as it is announced.

When to ask: early, because the answer determines what a “comparison” is worth.

Practical tip: ask how many providers are actually compared for your type of need, not just how many the person knows. If you have already received an offer elsewhere, mention it: it helps place what you are being proposed without leaving you to negotiate against yourself.

5. Why this product for me?

A serious recommendation rests on your situation: your income, your obligations, your goals, your time horizon and your risk tolerance. A generic pitch, valid for anyone, is not a recommendation.

The person must be able to explain the link between what they propose and what you told them. They must also present the trade-offs: what the product allows, what it limits and the alternatives they set aside.

When to ask: when the product is proposed, before any signature.

Practical tip: ask the person to restate your situation before presenting the product. If they understood, the restatement will be accurate; if not, you will have caught it before signing. Also ask what would lead you to give up on this product: an honest person can name the cases where it does not fit.

6. What are the fees, penalties and exclusions?

The cost of a financial product is not limited to a displayed price. It includes opening or management fees, withdrawal or early repayment penalties, coverage exclusions and sometimes conditions that appear only in the fine print.

These items must be presented to you before you commit, and you are better off getting them in writing. Withdrawal and early repayment conditions are particularly important: they determine the freedom you will have if your plans change.

When to ask: before signing, by requesting a document you can reread calmly.

Practical tip: ask in three parts. What do I pay? What would I pay if I leave the product earlier than planned? What is not covered? Highlight each answer in the document you receive, and compare with another offer if needed.

7. What happens if my situation changes?

A financial decision is made at a specific moment, but it often lasts years. In the meantime life moves on: job loss or change, a birth, a separation, a move, illness, buying a property.

This question helps you see whether the product is flexible or rigid: can payments be paused, an amount changed, the contract transferred, a beneficiary added or removed, an exit made without excessive penalty? The answer can vary a lot from one product to another, even within the same category.

When to ask: during the discussion of the product, before the decision, giving one or two concrete examples from your own life.

Practical tip: pick the change most likely for you in the coming years and ask how the product would react. An authorized person can also tell you when to review your file, for example after a family event or at each major renewal.

8. What is in writing, and what do you give me?

Words are forgotten; documents remain. What counts is what is written: the contract, the proposal, the summary of terms, the recommendation and any statements you signed.

Ask which documents you will receive, when and in what form. Keep a complete copy of everything you sign, including schedules, endorsements and declaration forms. If you are given a verbal promise that seems important, ask for it to be recorded.

When to ask: from the first meeting, then at each step where a document is signed.

Practical tip: create a file, paper or digital, with a copy of every document and the date of each exchange. In case of disagreement, a claim or a simple memory lapse, you will know what was agreed. Never sign an incomplete document or one with blanks left to fill in.

9. How can I file a complaint?

You hope never to need it, but knowing the procedure before signing is part of an informed choice. A serious person or firm has an internal complaint-handling procedure and must be able to explain it.

If the complaint is not settled to your satisfaction, other recourse exists. The AMF receives complaints and reports about the professionals it oversees; ethics bodies, such as the Chambre de la sécurité financière for certain categories of representatives, have their own role; the Office de la protection du consommateur and consumer associations can also point you in the right direction.

When to ask: before signing, naturally, the way you would ask about cancellation terms.

Practical tip: ask for the name of the person in charge of complaints and how to reach them, then keep that information with your contract. If a problem arises, act quickly and in writing, keeping a record of each step.

10. Where do I start?

Routes a mortgage, insurance or investment request to an authorized person. Shows no rates and makes no automatic decision.

In practice, you describe your situation in a short form and your request goes to a person registered with the AMF, who contacts you. That person, not the site, can examine your file, compare options and explain the differences. You are under no obligation to follow up.

When to use it: if you do not know an authorized person and would like to meet one, or if you want a point of comparison with someone you have already met.

Practical tip: however you find your contact, put the first nine questions to them, check their registration in the AMF register and keep the answers in writing.

Visit 10. Where do I start?

What to do with the answers

Once you have the answers, step back. Reread your notes, compare them with what the public resources say and make sure you can explain the product in a few sentences to someone you trust. If you cannot, there may still be a point to clarify.

Consult the independent resources: the AMF for the register and consumer information, the Financial Consumer Agency of Canada for neutral explanations, the Chambre de la sécurité financière for ethics questions. None of them will tell you which product to choose, but they help you ask better questions.

Accept not deciding on the spot. A sound proposal will still be valid in a few days, and a serious person will respect your timeline. If you are pressed, note it: it tells you something about how the relationship would go afterwards.

Mistakes to avoid

A few traps come up often when choosing someone for advice:

• trusting the title on a business card rather than the AMF register;
• mistaking friendliness for competence, or speed for efficiency;
• signing a document before understanding the fees, penalties and exclusions;
• accepting a verbal promise without having it written down;
• comparing with only one offer, or only on a single figure;
• not asking how the person is paid, out of embarrassment;
• letting urgency drive the decision.

Each of these mistakes is common, and each is fixed by a question asked at the right time. None of this requires distrust: it is simply about making sure the relationship rests on verifiable facts. An authorized person registered with the AMF who works rigorously will generally appreciate a well-prepared client.

Frequently asked questions

Sources

• Autorité des marchés financiers (AMF)
• Financial Consumer Agency of Canada
• Chambre de la sécurité financière
• Office de la protection du consommateur