An overwhelming 89 per cent of Canadian investors rank trustworthiness and honesty as the most crucial characteristic when choosing an investment advisor, according to a new study released by BMO Nesbitt Burns.

The other top concerns cited by respondents include an advisors’ level of knowledge (88 per cent), followed by language clarity and experience (82 and 83 per cent respectively).

Tied at 76 per cent, track record and availability were equally important to investors. Likewise, reputation and advisor confidence level were cited as crucial by 75 per cent of respondents. Meanwhile, 69 per cent consider it “very important” that their advisor engages in “meaningful communication” on a regular basis.

Interestingly, the study also revealed that investors care more about attaining their own financial goals (84 per cent) than they are interested in their returns outperforming the markets (71 per cent). 

“It’s encouraging that Canadians appreciate the importance of having the performance of their investments track to their overall financial plan,” said Bill Brown, senior vice president and managing director at BMO Nesbitt Burns.  

“However, they are also seeking to play a more active role in managing their portfolios by better understanding the markets,” Brown added. “Advisors can set themselves up for success by engaging their clients in meaningful conversation and taking the time to explain the market forces at play and how they affect investing.”

According to Nesbitt Burns, Canadians investors looking for an investment advisor should:

- Ensure the client service involves “meaningful conversations,” either by phone or in person. Investors should also be clear about the fees/services so as to avoid any surprises.

- Opt for an advisor who will listen and take an interest in an investor's specific life situation. This involves "extending the wealth management conversation" beyond investments to include other important matters such as insurance, estate planning, tax planning, business succession planning and/or education savings.

- Require regular contact such as portfolio reviews and meetings to discuss information related to an investor's overall financial plan. 

The study, conducted by Pollara, found that over two-thirds (69 per cent) of Canadian investors have turned to a financial or investment advisor within the past year.