Peter needs some advice on his retirement planning because he intends to move to Ottawa when he retires. Peter speaks to two financial planners Gary who works for ABIG bank and Ivan who is runs his own practice. Gary recommends that Peter invest in ABIGs GIC using an RRSP account. Ivan recommends he invests in 2 different GICs- one with ABIG bank and the other with ASMALL bank. Ivan states he can recommend more GIC options because he is more independent than other financial planners in that he only receives commissions from financial institutions and not a salary. Peter is concerned about independence of the financial advice he receives and has come to you for advice on choosing a financial planner.

Required:

1. Explain to Peter whether Ivans statement is correct and a method to tell if a financial planner is independent from financial institutions. (10 Marks)
2. Explain to Peter another aspect he should look for in a financial planner when seeking financial advice and why it is important. (10 Marks)