Close
Close
Browser Compatibility Notification
It appears you are trying to access this site using an outdated browser. As a result, parts of the site may not function properly for you. We recommend updating your browser to its most recent version at your earliest convenience.
Skip to Content Skip to Subnavigation

OBSI – Ombudsman for Banking Services and Investments

Consumer Portal LoginFirm Portal Login
Français
Increase Contrast
Fran�aisFR Main menu icon Open Menu
  • For Consumers
    • Can OBSI Help?
    • Consumer Bulletins
    • Consumer Portal
    • Consumer Resources
    • FAQs
    • Find Your Firm
    • How the Complaint Process Works
    • How We're Funded
    • Make a Complaint
    • Past Feedback and Input

    View our Make a Complaint page

    Make a Complaint

  • For Firms
    • Apply for Membership
    • Fee Payment Structure
    • Firm Bulletins
    • Firm Feedback and Input
    • Firm Helpdesk
    • Firm Portal
    • Firm Resources
    • Participating Firms

    Log in to OBSI Firm Portal

    Firm Login

  • How We Work
    • FAQs
    • OBSI and the Legal System
    • Our Approaches
    • Our Process
    • Our Service Standards
    • Our Vision, Mission and Values
    • Principles and Practice
    • Reconsiderations and Complaints About OBSI
    • Responsibilities of Firms and Consumers

    View our FAQs page

    FAQs

  • Case Data and Insights
    • Case Data
    • Case Studies

    View our Case Studies page

    Case Studies

  • News and Publications
    • Annual Reports
    • Firm Refusals
    • Media Releases
    • OBSI News
    • Presentations, Reports and Submissions
    • Print Materials
    • Public Consultations

    View our OBSI News page

    OBSI News

  • About Us
    • About OBSI
    • Accessibility
    • Careers
    • Contact Us
    • COVID-19 Update
    • Governance
    • How We're Regulated
    • Our History
    • Privacy
    • Staff
    • Strategic Plan
    • Terms of Reference

    View our Contact Us page

    Contact Us

I'd Like To... Open icon Close Icon
  • Make a complaint
  • Contact OBSI
  • Find my firm
  • Apply for membership
  • Log in to the Consumer Portal
  • Log in to the Firm Portal
  • Know how the complaint process works
  • Subscribe
  • Follow OBSI on Twitter
  • Follow OBSI on LinkedIn

Media Releases

HomeNews and PublicationsMedia Releases
Print Print link
Share Share icon
  • Open new window to share this page via Facebook Facebook
  • Open new window to share this page via LinkedIn LinkedIn
  • Open new window to share this page via Twitter Twitter
  • Email this page Email
Increase link Increase text size
Descrease link Decrease text size

Becksley Capital Inc. refuses to compensate investor for losses

Posted On Tuesday December 01, 2020
Tweet
Open new window to subscribe via RSS
Subscribe
News Release

Toronto, December 1, 2020 - The Ombudsman for Banking Services and Investments (OBSI) today announced the refusal of Becksley Capital Inc. (Becksley) to compensate an investor $33,055 for losses caused by the firm’s sale of unsuitable investments.

Becksley is an exempt market dealer based in Richmond Hill, Ontario.

At the time of the investment, Mr. J was a 37-year old skilled tradesman with a high school education. Mr. J had an income of $69,000 and a net worth of less than $100,000.

On the advice of an agent of Becksley Capital, Mr. J borrowed $60,000 on a line of credit to invest in an exempt market product. Exempt market products are private investments that can only legally be sold to investors who meet certain income and net worth requirements.

The Becksley agent was a financial planner and a family friend of Mr. J’s who was not licensed to sell this kind of investment. He wasn’t an employee of Becksley but worked as a referral agent. He helped Mr. J complete false documentation about Mr. J’s assets so he would appear to be a high net worth “accredited” investor.  

Becksley Capital received Mr. J’s forms from the referral agent, opened his account and sold him the exempt market investment without taking any steps to verify that the information about him was accurate or know anything else about him. Exempt market dealers are required to take steps to “know their client” before selling investments to them and are not allowed to delegate that obligation to any unlicensed individuals.

The income and wealth requirements for investors in exempt market or “private” investments are in place to ensure that investors are:

  • sophisticated enough to understand the investment and its risks, and
  • financially able to withstand the potential loss of all the money they invest.

Through our investigation, OBSI found that Mr. J did not qualify as an accredited investor and that exempt market products were unsuitable for him. We determined that Becksley Capital had improperly delegated its know-your-client and suitability obligations to an unlicensed referral agent and failed to verify that Mr. J was an accredited investor.

We also found that Mr. J had some responsibility for his losses because he had the capacity to understand the risks of the investment which were disclosed to him and signed documents that he knew or should have known contained false information.

As a result, we recommended that Becksley Capital and Mr. J both shared responsibility for Mr. J’s financial losses, which is reflected in the recommendation amount.

A copy of OBSI's investigation report for Mr. J's complaint is available here. Some names and personal information have been edited to protect the identity of certain individuals involved, including the complainant.

All investment firms in Canada are required to make OBSI services available to their clients. Following the investigation of a complaint, OBSI may make a recommendation for compensation where it would be fair to do so, considering all the facts and circumstances of the case. If a firm refuses to follow a recommendation, OBSI is required to publicize that refusal and the details of the complaint.

-30-

Canada’s Ombudsman for Banking Services and Investments (OBSI) is a national, independent and not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with the stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.

For more information, contact:
Mark Wright, Director, Communications and Stakeholder Relations
416-287-2877 ext.2225
mwright@obsi.ca

Back to Search
  • Media Releases
  • Annual Reports
  • Firm Refusals
  • OBSI News
    Toggle Section
    • Bulletins
    • News Releases
    • OBSI Newsletters
    • Stakeholder Announcements
  • Presentations, Reports and Submissions
  • Print Materials
  • Public Consultations
  • For Consumers
  • For Firms
  • How We Work
  • Case Data and Insights
  • News and Publications
  • About Us
  • Other Links
  • Can OBSI Help?
  • Consumer Bulletins
  • Consumer Portal
  • Consumer Resources
  • FAQs
  • Find Your Firm
  • View All...
  • Apply for Membership
  • Fee Payment Structure
  • Firm Bulletins
  • Firm Feedback and Input
  • Firm Helpdesk
  • Firm Portal
  • View All...
  • FAQs
  • OBSI and the Legal System
  • Our Approaches
  • Our Process
  • Our Service Standards
  • Our Vision, Mission and Values
  • View All...
  • Case Data
  • Case Studies
  • Annual Reports
  • Firm Refusals
  • Media Releases
  • OBSI News
  • Presentations, Reports and Submissions
  • Print Materials
  • View All...
  • About OBSI
  • Accessibility
  • Careers
  • Contact Us
  • COVID-19 Update
  • Governance
  • View All...
  • Privacy
  • Sitemap
  • Accessibility
  • Subscribe to Our News
  • Contact Us
  • Website Feedback
  • View All...

Ombudsman for Banking Services and Investments logo

Toll-Free Telephone: 1 (888) 451-4519
Greater Toronto Area: (416) 287-2877
TTY Telephone: 1 (855) TTY-OBSI

Toll-Free Fax: 1 (888) 422-2865
Greater Toronto Area Fax: (416) 225-4722

Design by eSolutionsGroup

© 2017 Ombudsman for Banking Services and Investments (OBSI), 20 Queen Street West, Suite 2400, P.O. Box 8, Toronto ON M5H 3R3

High Contrast Mode is on