What to Know Before (and After) You Hire an Advisor (w/ Matthew Taylor) | #427

In this episode, we're joined by Matthew Taylor, a litigation lawyer with Sotos Class Actions in Toronto who represents retail investors and pension funds in securities class actions. We take a deep dive into what makes a successful negligence claim against a financial advisor, how courts assess fiduciary relationships in Canada, and what investors should look for when evaluating the people managing their money.

We explore the evidence that can strengthen or weaken a negligence claim, from one-size-fits-all portfolios and unexplained trades to poor communication and failures to account for changing life circumstances. Matthew also explains the distinction between suitability and fiduciary standards, the factors courts consider when determining whether a fiduciary relationship exists, and why professional affiliations and explicit fiduciary commitments can matter.

The conversation then turns to class actions, including how securities claims differ from individual negligence lawsuits, what makes a claim suitable for class proceedings, and why regulatory investigations, specialist law firms, litigation funding, and parallel U.S. proceedings can provide important signals. We also discuss pension funds, their role as plaintiffs, and why monitoring potential claims and settlements can be part of managing beneficiaries' assets.

Finally, we examine the growing retailization of private assets and the risks created by limited information, complex structures, opaque fees, illiquidity, and manager-determined valuations. Matthew explains what advisors and clients should consider before investing in private funds—and why he expects more litigation in this area. We close with the legal and regulatory challenges created by financial influencers, and how investors and advisors can build greater resilience against misleading financial content.

Key Points From This Episode:

(0:01:04) Advisor errors leading to negligence claims—KYC, KYP, suitability failures, plus warning signs like one-size-fits-all portfolios, unexplained trades, concentrated positions, churning, and double dipping.

(0:02:20) Why evidence matters: the gap between what people know and what they can prove in court.

(0:04:08) How investors can recognize poor advice—changes in communication, failure to address life circumstances, or lack of transparency.

(0:06:41) Importance of checking an advisor's regulatory history before entrusting significant assets.

(0:07:51) Investor vulnerabili