Case Studies

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investment suitability

High-risk exempt market securities unsuitable for older investor with limited assets

Posted Wednesday, February 26, 2020

Key learnings:

  • High-risk, illiquid investments are not suitable for low-to-medium risk, semi-retired or retired consumers with limited financial assets who rely on their investments to supplement their retirement income.

Consumer makes risky investing decisions

In December 2010, Ms. R was 60 years old, had been retired since 2008, and had been divorced for several years. Between 2008 and 2010, her annual income averaged $17,500. She owned her home that was valued at $352,000 and...

student loan

Consumers are not responsible for the cost of administrative errors

Posted Thursday, December 19, 2019

Key learnings

  • All borrowers are responsible for ensuring that they review and understand their loan instructions for repayment and follow them.
  • If consumers have complaints about their loans, refusing to make a payment is never a good way to fix the problem.
  • Financial consumers should be able to rely on the loan balances clearly and repeatedly communicated to them by their financial service providers.

In September 2004, Mr. D returned to school with the intention to complete his studies...

cheques

Consumer recovers thousands lost when cheques are stolen from his home and forged

Posted Friday, September 20, 2019

Key learnings

  • Consumers with chequing accounts are responsible for properly securing their cheques, chequebooks and other bank documentation, particularly if others may have access to their home.
  • Consumers are responsible for regularly verifying their account statements and notifying their bank immediately when they become aware of any unauthorized activity in their account.
  • Banks must comply with the Bills of Exchange Act when assisting customers with cheque problems.

In early 2017,...

senior man

High risk investments suitable for this senior investor, but DSCs unsuitable

Posted Wednesday, August 28, 2019

Key learnings

  • Seniors are not always low-risk investors – high risk investments can be suitable for some seniors, depending on their circumstances.
  • Deferred sales charge (DSC) funds are generally not appropriate for senior investors due to their shorter investment timeframes.
  • Investors should always confirm the accuracy of their Know-Your-Client (KYC) and read their disclosure documents carefully and ask questions to be sure they understand them.

Mr. H moved his investment portfolio...

POA

Firm acted fairly and reasonably when refusing a request made under a power of attorney

Posted Tuesday, July 16, 2019

Key learnings

  • All actions taken by a person using a power of attorney document (POA) must be for the benefit of the person who granted the POA.
  • A financial firm can refuse a transaction request made by a person using a POA if the firm has a reason to be concerned that the request is not being used for the benefit of an account holder.

Mr. D was a terminally ill senior. He had named his daughter, Ms. M, to be a substitute decision maker for him in a POA. In early 2018, she contacted...

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