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Case Studies

  • Investor partially responsible for losses

    When Mrs. K, a 51-year-old life insurance advisor, opened an investment account at Firm ABC, she signed a Know-Your-Client (KYC) form indicating 100% medium risk tolerance and an objective of 100% long-term capital gains. Soon after this, her investment advisor began to purchase higher-risk securities. While Mrs. K was privately concerned, she chose not to complain.

  • Elderly investor solely relied on advisor for investment advice

    In 2002, Mrs. E, then 71-years-old, began investing at Firm ABC with the help of an investment advisor. As her financial knowledge was limited, she let her advisor manage her registered account. The Know-Your-Client (KYC) form she signed indicated she was a conservative investor seeking to preserve her capital.

  • Son used mother's home as security for a loan

    Mr. C brought a complaint to OBSI on behalf of his mother regarding a Power of Attorney (POA) document she signed appointing her three children to act as attorneys on her behalf. Each of her children could act alone.

  • Nephew argued aunt's bequeathment should have been more

    Mr. S was his late aunt's primary caregiver. For three years, he took care of her by taking her to doctor's appointments, hiring additional support persons, consulting lawyers, making medical decisions and attending to other needs as they arose.

  • Unexpectedly large mortgage prepayment penalty

    Mr. W had a mortgage with his bank, and wanted to know what penalty he would be charged if he paid out his mortgage early. Mr. W was told that the penalty would be $2,300. He was also made aware that this amount could be significantly higher if five years or less were remaining on his term. At the time of this call, this second clause did not apply.

  • Life insurance on lines of credit denied

    Mrs. A's husband passed away in 2008 leaving her the sole beneficiary of his estate. After his passing, Mrs. A submitted life insurance claims for $88,000 covering the two lines of credit (LOC) that her late husband had taken out in 2000 at their bank.

  • Unauthorized purchases while travelling

    Ms. H went on a trip overseas where she claimed she was the victim of a credit card fraud. Ms. H insisted that while she was travelling she never used her credit card or gave her PIN or card to anyone. Several overseas cash advances were recorded during her time abroad. She therefore asserted that she was a victim of fraud and requested that her bank compensate her for her loss of just over $3,000.

  • Unauthorized loans made on investor's account

    A couple in their sixties first met an advisor at an investment seminar. He arranged a meeting and recommended that they borrow $450,000 to invest. Although uncertain, the clients signed the loan documents. A week later, the advisor found out that the clients only qualified for a lesser $300,000 loan. He authorized the amendment to the loan and the money was invested a few days later. After receiving a loan acknowledgement and investment confirmation in the mail, the clients immediately called the advisor to complain as they believed they had just signed an application.

  • Investors dismissed advisor's concerns

    A couple in their 40s deposited $100,000 with a mutual fund dealer, obtained a “2 for 1" loan, and invested a total of $250,000 in mutual funds.

  • Investor delayed accepting firm settlement offer

    A client with about $1,000,000 in GICs and a number of real estate investments met with an advisor. His account application said that he had an investment time horizon of 15+ years and objectives of balanced capital growth. He was quite knowledgeable and worked in real estate development.


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