Case Studies


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Consumer alleges online investing app misled her about margin borrowing and interest obligations

Posted on Wednesday, April 08, 2020 10:15 AM

Key lesson

Consumers who open online investing accounts (also known as discount brokerage or “order execution only” accounts) are responsible for reviewing all account agreement terms and conditions, making their own trades, and monitoring their account activity.

Do-it-yourself investing

In early 2019, Ms. C opened an investment account at Firm K, an online broker, using the firm’s mobile app. Choosing to invest with an online broker meant that Ms. C was responsible for making her own investment decisions...

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

Posted on Wednesday, February 26, 2020 09:15 AM

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 had $100,000 in investable...

Consumers are not responsible for the cost of administrative errors

Posted on Thursday, December 19, 2019 11:00 AM

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 by April 2005....

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

Posted on Wednesday, August 28, 2019 12:30 PM

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 to a new advisor...

Senior falls prey to antivirus scam

Posted on Monday, August 05, 2019 02:30 PM

Key learnings:

  • Fraudsters often begin a relationship with a victim, appear to send them too much money, and then ask the victim to send money back. The money that the scammer sends is fake, but the money that the victim sends back is real.
  • Even when they are innocent victims of fraud, consumers are responsible for losses resulting from their own actions.

One day in 2017, Mr. R’s computer froze. A warning appeared on the screen and a message from what appeared to be a reputable company was displayed....

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