May 10, 2012

Investment Suitability and Loss Assessment Process

In the majority of investment complaints we receive each year about advice-based accounts, investors complain that they received poor advice, their investments or investment strategies were unsuitable and/or that their investments did not perform as they expected. In such “suitability” complaints, investors ask to be compensated for the investment losses they incurred.

On May 26, 2011, OBSI issued for public comment a consultation paper detailing our suitability and loss assessment process. Twenty-one comment letters were submitted from investors, participating firms, industry associations, and other interested stakeholders. All comment letters have been posted on OBSI’s website, along with a complete summary of stakeholder feedback.

OBSI’s Board of Directors has proposed a number of enhancements to our suitability and loss assessment process. These proposals, as well as a summary of stakeholder feedback received during the first round of the consultation, are contained in a new consultation paper found on our website.

OBSI invites written comment on the proposed changes to our process. After receipt and consideration of any further comments OBSI’s Board of Directors will finalize a new methodology, which will be published on OBSI’s website.

Comment letters may be addressed to:

Tyler Fleming
Director, Stakeholder Relations and Communications
401 Bay St.
Suite 1505, P.O. Box 5
Toronto ON M5H 2Y4

Fax: 1-888-422-2865
Email: publicaffairs@obsi.ca

Comments will be accepted until July 9, 2012, and will be posted on OBSI’s website.


DOCUMENTS

Consultation Paper
Suitable Performance Comparison Case Studies

2011 Consultation – Investment Suitability and Loss Assessment Process

DOCUMENTS

Consultation Paper: Suitability and Loss Assessment Process
Document: Summary of Stakeholder Comments

Submissions:     

Larry Elford (May 27 2011)
SIPA (May 27 2011)
Kenmar Associates (June 3 2011)
Mike Macdonald (June 7 2011)
Burgeonvest Bick Securities Ltd. (June 14 2011)
J Maser (June 21 2011)
Robert Goldin (June 27 2011)
Investors-Aid Cooperative (June 27 2011)
Mildred Jagdeo (July 14 2011)
MÉDAC (July 20 2011) In French
Debra A. McFadden (July 22 2011)
IFIC (July 22 2011)
RBC Ombudsman (July 22 2011)
Dave McNabb (July 23 2011)
Advocis (July 25 2011)
IIAC (July 25 2011)
RBC (July 25 2011)
FAIR Canada (July 25 2011)
PIAC (July 25 2011)
Pamela J Reeve (July 25 2011)
Raymond James Ltd (July 25 2011)