CSA, IIROC and the MFDA have released a joint notice, Complying with requirements regarding the Ombudsman for Banking Services and Investments. The notice highlights concerns about some registered firms’ complaint handling systems and participation in OBSI’s services, and sets out potential regulatory responses. In the notice, the regulators say that, though OBSI’s compensation recommendations aren’t […]
The SEC says in a release that it has obtained an emergency asset freeze to halt an initial coin offering fraud that raised up to US$15 million from thousands of investors since August. The offering falsely promised a 1,354% profit, says the SEC. The commission has filed charges against “a recidivist Quebec securities law violator,” […]
In 2016 investment complaints to the Ombudsman for Banking Services and Investments (OBSI) were up 17% from the previous year. Better online service might help clients with complaints feel less frustrated: OBSI has launched a new website, which includes a “simplified” complaint process for clients, says the ombudsman in a release. The overall complaint process […]
On Oct. 11, 2017, an MFDA hearing panel permanently banned and fined a previously registered representative, Walter John Dixon. The sanctions result from Dixon’s failure to respond to numerous communication attempts by the MFDA about a client complaint. Over 11 months, the MFDA attempted to contact Dixon by regular mail, registered mail, process servers, email […]
Online platforms may be on the rise, but the advisor-client relationship isn’t going anywhere. “The prospect of fully automated advice is not something Canadians should expect in the near term,” says a draft report on fintech innovation by the Competition Bureau. The comment is made in relation to suitability risk for robo-advisors, such as flawed […]
The SRO is currently reviewing its CE program
An MFDA hearing panel has accepted a settlement agreement between MFDA staff and Investia Financial Services, and the following sanctions were imposed: a fine of $200,000; and costs of $20,000. In the settlement agreement, Investia Financial admits it failed to adequately supervise, and establish and maintain adequate internal controls pertaining to, outside business activities of […]
Global regulators get high-tech with enforcement
Typical Canadian robos are held to a fiduciary standard.
In 2016-2017, financial institutions reimbursed $10.5 million to 1.2 million consumer accounts, reveals the annual report from the Financial Consumer Agency of Canada (FCAC). The reimbursement made up for inaccurate fee disclosure or interest rate calculations, or for incorrect charges to accounts. Read: Pro bono legal clinic backs wronged investors FCAC’s annual report also details […]