Case Studies


Select a Date Range

Small Business Debt

Posted on Thursday, January 26, 2017 12:45 PM

Key Learnings:

  • Ensure you read carefully and know the terms and conditions of any financial agreement you sign.

Mr. A’s small business filed for bankruptcy in 2014 after several years of financial difficulties. At the time, there was a $15,000 balance on the company credit card. The balance went unpaid for some time and the bank, unable to collect from the company, turned to Mr. A to personally pay the outstanding amount.

Mr. A explained that he was not personally responsible for the liabilities incurred...

Advisor Conducted Business Outside of Firm

Posted on Saturday, November 12, 2011 04:00 PM

In February 1999, Mr. C opened an RRSP account. Five years later, he closed the account when he sold all of his investments to purchase a new home. Mr. C had no further contact with his former advisor until early 2008, when they ran into each other at a local store.

By Mr. C's recollection, the advisor suggested they meet to discuss an investment opportunity, he could earn a guaranteed monthly return of 5% and the principal could be repaid after six months with 30-days written notice.

Mr. C and the...

Responsibility to Monitor Account Balances

Posted on Saturday, November 12, 2011 04:00 PM

In early 2009, Ms. B was set to receive $59,000 as part of a severance package. On the advice of bank staff Ms. B opened a Registered Retirement Savings Plan (RRSP) account, into which she deposited the severance payment.

One month later, Ms. B made another deposit to the RRSP account, this time a $9,000 Guaranteed Investment Certificate (GIC) from a retirement fund with her former employer. The GIC matured in 2011.

Ms. B started making monthly withdrawals of $4,800. In late 2009, she inquired with...

Son Fought to Regain POA Over His Parents' Accounts

Posted on Saturday, November 12, 2011 01:00 PM

Mr. A's parents had signed a Power of Attorney (POA), prepared by their lawyer, giving their son wide-ranging control over their financial affairs. For almost a decade, Mr. A managed his parents' finances without incident.

The parents then signed their bank's own standard POA, which Mr. A thought was a mere housekeeping measure that would supplement the existing POA.

Mr. A soon realized the latest POA was far more restrictive. His attempt to open a brokerage account under his parents' name was turned...

Deposit Error

Posted on Friday, December 10, 2010 04:45 PM

Ms. D and her common-law spouse of 33 years had a $120,000 investment to which they had both contributed over the years. Both elderly, in 2003, they decided to cash out their investment and received a jointly payable cheque. The couple visited their bank and met with their banking representative. Ms. D's spouse identified the account which the cheque was to be deposited, which the banking representative wrote on the back of the cheque. A teller completed the transaction.

Neither Ms. D nor her spouse...

High Contrast Mode is on