Case Studies

Search

Select a Date Range

Low-Risk Investor Held High-Risk Debentures

Posted on Friday, November 11, 2005 03:45 PM

The client was a low-risk investor looking for safe, income-producing investments. He wanted to avoid the volatility of the stock market, although he would tolerate a small share of his portfolio in equities as an inflation hedge.

The client's investment advisor recommended an investment in Air Canada debentures, suggesting they were “not very risky." He failed, however, to share the prospectus for the debenture which contained rating agency descriptions ranging from “lower quality" to “speculative...

Unauthorized ATM Withdrawal

Posted on Friday, November 11, 2005 12:45 PM

The client lived and worked overseas, but continued to use a Canadian bank account and her Canadian bank access card at ATMs. From overseas, she complained to her bank that a withdrawal for about $1,100 was made at a nearby ATM without her knowledge.

The bank replied that the cash was withdrawn using the client's PIN number, and it was entered correctly on the first attempt. As well, the card was not reported stolen. Finally, there was only the one disputed transaction, and it was at an ATM the client...

Dispute Over Mortgage Prepayment Terms

Posted on Friday, November 12, 2004 01:00 PM

A couple decided to sell their house and buy one better suited to their needs. They contacted their bank and inquired about their financing options for their future house. They also asked about the effect an early discharge would have on their existing mortgage and were advised that an early discharge would result in the bank charging them a $4,000 prepayment fee.

Despite their unhappiness with the amount, the couple went ahead and bought a new house a few months later. When it came time to close...

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

Posted on Friday, September 20, 2019 01:45 PM

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, Mr. W returned from...

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

Posted on Thursday, February 28, 2019 09:45 AM

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 with his investment firm in 2012....

High Contrast Mode is on