The Scorpion and the Frog

This excellent book was written by David Yudelman in 2001. It provides a consumer view of Canadian  financial services and ways to transform them. Its message is just as valid today.Read the book      

OBSI Name and Shame The Octagon Capital case

This was the second case in OBSI's history that it named and shamed a firm.It also published the full recommendation Report keeping the victim's identity confidential. The Report provides an excellent insight into OBSI's approach to investigations and the type of issues that investors are exposed to. There are lessons to be learned for those who take the time to read it.

When it first appeared Ms. Debra McFadden , someone who also had been exposed to complaining to firms remarked:

"I am glad that OBSI has had a taste of what clients have to deal with when trying to resolve things with a firm. The defer, delay dispute crap has to stop! Many clients never even go as far as to complain to OBSI so you can imagine how many just give up when up against these arrogant firms. I know myself I bent over backwards wanting to give the firm every opportunity to do the right thing but they would just play me along. It isn't until they realize you won't back down and that it is all going to come out in a courtroom and to the public that they cave. It is a very unfair game of who blinks first in a child like game of staring them down. Since they have high powered guns on their side the imbalance of power is extreme. Since I believe many that are taken advantage of are likely seniors most are unable to engage in this formidable battle. I bet for every 1 complaint that goes to OBSI there are at least 1,000 more just like it that should be complaining. So for 21 complaints to at one time be stuck at an impasse with OBSI is deplorable. Instead of OBSI going to extreme measures to get them to comply the gov't should step in and crack the whip hard to bring this whole industry inline! Read the OBSI Report

Your investments are protected, right?

Your investments are protected, right? Well, maybe. A 2008 Mutual Fund Dealers Association of Canada (MFDA)  report has recommended that provincial securities commissions expand protection for investors because the two key funds - the Investor Protection Corp. for mutual fund investors, and the Canadian Investor Protection Fund for brokerage industry investors - have significant gaps. Both compensation funds protect investors' assets up to $1 million in the event that financial firms go bankrupt .But failed investment firms such as Portus Alternative Asset Management Inc. and Norshield Asset Management (Canada) Ltd. were not licensed as mutual fund dealers, which are covered by the IPF. Rather, they were licensed as portfolio and mutual fund managers, which are not covered at all, the report notes.

The MFDA recommends that both the fund manager and portfolio manager categories of firms be required to join either the IPC or the CIPF to ensure seamless coverage. According to a G&M article , the Ontario Securities Commission said its staff do not agree that there are gaps in the regulation and oversight of fund managers and portfolio managers. "While mutual fund assets are not held at mutual fund dealers, these assets are held at qualified custodians which are IIROC members or Canadian financial institutions, such as banks . We suggest you check on your specific investments . The MFDA report .

Legal liabilities of Financial Advisors in canada

This paper provides an excellent summary of the legal liabilities of financial advisers.It is worth the read if you are at all interested in this subject.Read the full paper 

The value of financial advice ( or not)

Does financial advice yield better results? Read the full article

Checking Registration and Disciplinary history

Securities Regulators rightfully recommend that investors check out their dealer and dealing Representatives ( aka “advisors” or salespersons) .Their websites are promoted as the starting place for investors to make informed decisions. Let's explore this in more detail.  Read the full article

Advisor Risk

When you use an adviser here's always the possibility you'll not get the full story. That's because most "advisers" aren't fiduciaries. They do not have to put your interests first. Read the full article

Sales incentives skew adviser behaviour

This Comment letter to the UK financial regulator summarizes our views and experiences with financial incentives used to "motivate" adviser sales of certain products. Most retail investorse do not understand the true nature of their relationship with their advisers.Read the full article.

Suitability system needs overhaul

The KYC -suitability system is not working as intended. Financial consumers are being exposed to undue risk. We call on the Joint Forum of Financial Regulators to address the issue on a priority basis. Read the ALERT 

ALERT on new bank complaint system

Read the full article