Canadian investment firms have not yet followed Wealthsimple’s lead in labeling certain stocks as « risky » after the Toronto-based robo-advisor announced last week it would add the label to GameStop, BlackBerry and other companies.
According to HSBC Bank Canada, the InvestDirect platform does not contain any warnings for individual companies because it does not contain any recommendations or financial advice.
An HSBC spokeswoman says the website includes a general warning that investment products do not guarantee returns and that clients should understand the risks before investing.
In contrast, Wealthsimple started telling traders last week that they should expect high volatility in certain stocks as brokers had to cope with high volume of trade requests after stocks gained prominence on social media.
When asked if BMO InvestorLine plans to label « risky » securities, a spokesman said its customers are self-determined.
According to BMO, the broker provides the information to clients 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 on February 1, 2021.