Canadian investment firms are so far not following Wealthsimple’s lead in labelling certain stocks as “risky” after the Toronto-based robo-advisor last week said it would add the label to GameStop, BlackBerry and other companies.
HSBC Bank Canada says its InvestDirect platform does not have any warnings particular to individual companies, since it does not provide any recommendations or financial advice.
An HSBC spokeswoman says the website carries a general warning that investment products do not guarantee profits and that clients should understand the risks before investing.
In contrast, Wealthsimple last week began advising traders that they should expect high volatility on certain stocks as brokerages scrambled to adjust to high volumes of trade requests after the stocks gained buzz on social media.
When asked whether whether BMO InvestorLine has plans to label “risky” securities, a spokesman said that its clients are self-directed.
BMO says the brokerage gives clients the information to make informed investment decisions, including news and research materials on the risks of various investments, including stocks and options.
This report by The Canadian Press was first published Feb. 1, 2021.
