What is the duty of a portfolio manager to advise the client of the risks associated with the portfolio?
Ontario, Canada
The following excerpt is from Vipond v. AGF Private Investment Management, 2012 ONSC 7068 (CanLII):
A portfolio manager has a duty to advise the client of the risks associated with the portfolio and those that are inherent in the underlying mandate. Again quoting from Laflamme at para. 33, This duty relates not only to the risks associated with certain initiatives, but also to the very nature of the matters agreed to between mandatary and mandator, especially where the mandatary is a lay person. Thus, the duty to advise extends to everything involved in the mandate to manage the portfolio, including the consequences for the client of any change in the object of the mandate. See also Davidson v. Noram Capital Management at paras. 52-53. (b) Causes of Action
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