Case studies tagging test

Mr. and Ms. S invested in an exempt market fund.  The fund was comprised of a pool of mortgages.  The fund experienced financial and management difficulties.  As a result a large number of investors tried to sell their shares causing the value of the fund to plummet. 

Mr. B complained when his RESP dealer firm refused to return the funds he contributed to an RESP account. Mr. B had been making payments to a scholarship plan for several years, but due to personal circumstances requested his RESP dealer firm place a temporary stop on his required contributions.

A few years after immigrating to Canada, a middle-aged couple opened an account with a full service investment firm and deposited $80,000 from the sale of their home in the UK and the husband's severance pay.

Nearly three-quarters of a 91-year-old client's account at a full-service brokerage firm was invested in a bond mutual fund. The investment advisor convinced the client's son, who held Power of Attorney for the client, to switch the investment in the no-load bond fund to the back-end load version of the same fund. The mutual fund company paid the advisor and the brokerage firm a $30,500 commission for the switch.

The investor, a client of a full-service investment dealer, conducted more than 200 trades in an eight-month period. He then moved his account, claiming that he had suffered losses as a result of the advisor “churning" his account. (Churning is excessive trading by an advisor to maximize commissions.) The investor also said the stocks bought and sold were overly concentrated in the volatile high tech sector.