Case Studies - Investments

At OBSI, we have seen a significant increase in complaints related to cryptocurrency and fraud. The case example below was originally published in our Consumer Bulletin: Cryptocurrency scams increasingly targeting and exploiting Canadians.

Registered Education Savings Plans (RESPs) are complex investment products that usually are invested for many years before the money can be used for a child’s post-secondary education.

If you invest through a do-it-yourself account at an order-execution-only (OEO) firm, you can pay significantly less in fees than you would to an advisor. 

Investment suitability is not determined on the basis of losses. 

Financial advisors are responsible for providing sound investment advice to match the financial needs and goals of their clients.

OBSI is committed to conducting impartial investigations and recommending fair outcomes for both firms and consumers. When consumers escalate their complaints to OBSI, firms are obligated to participate in our process in good faith. 

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.

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 savings. Her investment objective was to generate income from her investment portfolio to supplement her income.

Mr. H moved his investment portfolio to a new advisor in 2008. At the time, he was 71 and was still working full-time as a physician. He was an experienced investor with an investment portfolio of approximately $1.4 million. He accepted his advisor’s recommendations to buy gold and precious metals mutual funds with DSCs.

Ms. T was a retired book editor, living on her own. Her government retirement benefits were supplemented by a small employment pension. Her only financial assets were approximately $30,000 invested in Government of Canada bonds.