Statement Regarding Macquarie Private Wealth Refusals to Compensate

November 30, 2012

Earlier today OBSI announced the refusal of Macquarie Private Wealth to compensate several retail investors in the amounts of $74,791 and $157,274 as recommended by OBSI after investigating the merits of their complaints.

Macquarie Private Wealth has since issued a statement asserting that they came to Canada through the acquisition of Blackmont Capital Corp. in January 2010 (not 2009 as OBSI stated), that the advisors in question were no longer with Blackmont at that time, and that this is material to OBSI's findings.

As OBSI has noted, the investment dealer that is the subject of the two complaints at issue here has changed names and ownership over the years. When Macquarie Group acquired the dealer, the existing obligations of the dealer remained unchanged. The issue of the time of the advisors' employment is irrelevant to the issue of the obligations of the dealer toward their former clients. These obligations do not disappear with a name change.

Nevertheless, for the purposes of setting the record straight, OBSI relied on several publicly-available documents when determining the date of the transaction, including IIROC Notice 10-0002 and CI Financial Corp’s Annual Information Form, both of which identify it as December 31, 2009. Macquarie Private Wealth was also provided with the opportunity to provide its comments on OBSI’s investigation reports before they were released to the public if it felt there was an error.