Case Studies

Client’s credit card is frozen because he refuses to answer a question about his occupation

Posted Friday, May 24, 2019

Key learnings

• Banks must ask consumers for certain information to meet their legal obligations and to help them make risk decisions.
• Consumers will not have access to certain products or services if they do not provide the required information to banks.

Mr. F had held his credit card, and a number of other products, with the bank for over 25 years. In early 2018, he noticed he had not received his credit card statement in the mail. He called the bank. He asked about the missing...

The Investment Firm should tell the client how to stop management fees when requested

Posted Thursday, February 28, 2019

Key Learnings

• Firms should fully explain their management fees. This includes explaining how investors can avoid further charges if they no longer agree to pay them.

• Advisors have an obligation to ensure an investor’s account is invested in accordance with their objectives and risk tolerance. Advisors are not obligated to recommend any specific trading strategies unless they are specified in the Investment Management Agreement.

Mr. P opened a managed account...

The bank is responsible for correcting issues arising from their own administrative errors

Posted Thursday, December 06, 2018

Key Learnings

• Administrative errors are the bank’s responsibility. But the customer must show evidence that they took reasonable steps to resolve any issues.
  
  
• The bank is responsible for non-financial harm placed on the customer because of the bank’s action/inaction.
  
  

In early 2016, Mr. and Mrs. J noticed that their bank had not taken the regularly scheduled mortgage payments from their account. The couple had diligently paid their mortgage on time for the past 5 years....

Investment dealers are responsible for unauthorized off-book transactions but consumers must remain diligent

Posted Monday, July 16, 2018

Key Learnings

• Investment advisors must conduct all securities trading through their investment firm.
• Firms are often responsible for investment recommendations their advisors make outside of the firm (off-book transactions) even if the firm was not aware of the investment.
• Consumers should make efforts to know that their investment firm is aware of, and approves of, the investment being made.

Ms. G sold her home in 2015. She had no investment experience. She had recently been...

Understand RESP categories when making withdrawals

Posted Wednesday, April 25, 2018

Key Learnings:

• There are different types of RESP withdrawals, and the choice you make can have important financial consequences. Always review your RESP withdrawal options with your advisor.
• Make sure you understand the tax and cost implications of withdrawals from your RESP and work with your advisor to create a withdrawal plan that is best for you and your family. Otherwise, your beneficiary may lose out on government grants or have to pay additional income taxes.

Ms. K had a...