Given our many years of previous public accounting experience, we completely understand how an accountant’s public practice operates and we also understand the incredible potential that exists for an accountant to review and discuss the areas of financial and investment management to ensure their client’s best interests are being served. For those accountants that are interested in this area, they soon find out that today’s investment industry is very poorly structured given most financial advisors are only able to promote financial products that they are licensed to sell. This reality means an accountants tax client will continually receive biased financial information from their current advisors who can only discuss their own product shelf while excluding many different investment opportunities that may very well be better suited for the client. For example, most investors are very eager to learn about the many real estate related investment opportunities that are available to them in both the regulated investment marketplaces (ie private REITS, real estate MICs etc) as well as the non regulated marketplaces (ie private lending, private JVs, FixNFlips etc) but soon realize their current advisor is not allowed to discusses these opportunities with them. Once accountants understand this reality, many feel an obligation to help their tax clients in this area.
Through our in-house company Accountants Capital Corp, which was created specifically to work with accountants, we partner with accountants in public practice to ensure their valued clients are properly educated and informed and that they are able to access all of the investment opportunities they desire in both the regulated investment marketplace as well as the non regulated marketplace. This has become a very popular structure for accountants given it not only ensures their clients are much better served compared to the services provided by traditional licensed financial advisors but it also adds an additional revenue stream to their current accounting practice which then becomes a lifetime annuity for them while having the choice to be as involved, or not involved, with Accountants Capital Corp. Think of a typical corporate structure whereby an individual owns a holding company and that holding company owns an operating company. Assuming success, the operating company will flow non taxable intercompany dividends up to their holding company for possible future investment purposes and, needless to say, most accountants would welcome the chance to help their clients with these types of investment opportunities while, at the same time, creating a secondary stream of income into their tax practices. To provide these types of investment services for the tax clients of accountants in public practice, Accountants Capital Corp uses the Canadian Investment Services framework.