John De Goey Financial Advice Reform Challenges Industry Norms
The investment world rarely embraces those who challenge its foundations, yet John De Goey has made a career of exactly that. Standing in a Toronto conference room last month, the portfolio manager delivered a message that sent ripples through the assembled financial advisors: much of what they consider financial wisdom might actually be damaging their clients’ wealth.
“The financial services industry operates on many beliefs that simply don’t withstand scrutiny,” De Goey told the hushed audience. “Yet these myths persist because they’re profitable for the industry, not because they benefit investors.”
De Goey’s latest book, “STANDUP to the Financial Services Industry,” represents his most comprehensive challenge yet to conventional financial planning wisdom. The veteran advisor, who manages over $220 million in assets at Wellington-Altus Private Wealth, has built a reputation as the industry’s internal critic—a role that’s earned him both devoted followers and powerful detractors.
His core argument centers on what he calls “professional obliviousness“—the tendency of financial advisors to ignore evidence that contradicts long-held beliefs about investment management. Chief among these beliefs is the value of active management, which De Goey argues consistently underperforms passive strategies when costs are factored in.
“The data is unambiguous,” De Goey explains. “After fees, fewer than 10 percent of active managers outperform their benchmarks over meaningful time periods. Yet the industry continues selling the myth that they can pick winners.”
The implications are substantial. Canadian investors pay among the highest investment fees in the developed world, with the average equity mutual fund charging approximately 2.3% annually—fees that compound dramatically over time and can reduce retirement savings by hundreds of thousands of dollars.
Mark Yamada, president of PÜR Investing Inc., notes that De Goey’s message threatens the status quo. “John is challenging a business model that’s made a lot of people very wealthy. That doesn’t win friends in certain circles, but it’s necessary work.”
Beyond active management, De Goey targets other industry practices including advisor compensation structures, the proliferation of financial credentials with minimal regulatory oversight, and what he sees as inadequate fiduciary standards. Many advisors, he notes, are not legally required to put clients’ interests ahead of their own—a surprising reality for most Canadian investors who assume otherwise.
The response from the investment community has been mixed. Some firms have embraced De Goey’s evidence-based approach, while others have fought vigorously against his reforms. Several major financial institutions declined to comment for this article.
Larry Berman, co-founder of ETF Capital Management, acknowledges the tension. “John forces uncomfortable conversations the industry needs to have. Not everyone wants to have those conversations, but they’re essential for the profession’s evolution.”
For retail investors, De Goey’s message is straightforward: question everything, understand what you’re paying for, and recognize that simplicity often outperforms complexity in investment portfolios. His advocacy has helped drive the growth of low-cost index funds and exchange-traded funds (ETFs) in Canada, products that have seen assets under management triple over the past decade.
Despite pushback, De Goey remains optimistic about the future of financial advice. “The industry is changing, just slower than it should,” he says. “My goal isn’t to tear down the profession but to improve it. Clients deserve better.”
As traditional investment models face increasing scrutiny and technology democratizes access to financial markets, De Goey’s reform agenda may be arriving at precisely the right moment. The question remains whether the industry will embrace change voluntarily or resist until market forces and regulation leave no alternative.
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