As global market volatility continues, financial advisors should continue to encourage investors to remain calm and to stick to their financial plans, according to Katie Walmsley, president of the Portfolio Management Association of Canada.

At PMAC’s annual conference in Toronto on Tuesday, Walmsley presented results of a recent survey of PMAC members. The survey showed that portfolio management firms are actively encouraging investors to stay calm and to stay the course

This is important, Walmsley said, as investors need this kind of reassurance now more than ever.

“It’s not a time for quick changes to investment decisions, investment strategies – it’s a time to engage with who ever your partner is in managing your savings and finances,” she said. “Investors would be prudent in keeping communication lines open with their portfolio managers, so they don’t make any rash moves that could impact them negatively in the long run.”

Clients are asking tough questions, Walmsley said, and they’re doing more due diligence when looking for a money manager.

These tough times have presented an opportunity for money managers and advisors to sit down with clients and re-visit their long-term goals and asset allocation, according to Robert Hill, chairman of PMAC.

“Certainly, having come through the last three or four years of market turmoil, investors are getting a much better sense of their tolerance for risk, and that’s enabled managers to have a discussion about the right structure for an individual,” Hill said. “Having the right mix of investments is key, and ultimately it will drive investment performance for these individuals over the longer run.”

Added Hill: “I think that’s a positive outcome of some of this negative market volatility.”

Still, the survey showed that volatility continues to present a major challenge to the investment industry, along with negative economic events around the world. In addition, provincial differentiations in regulatory policies pose challenges for the industry.

“In Canada we’re still with a fragmented regulatory system…and that does cause some inefficiencies,” Walmsley said. “Our survey did show that members are still finding that challenging.”

PMAC is encouraged by the recent progress that the federal government has made towards establishing a single securities regulator, Walmsley said.

“We’re hopeful that the Supreme Court will see fit to rule positively in favour of having a national regulator in the coming months.”