This week, Investment Executive launches a new addition to our Compliance Calendar for Advisors: “Avoiding trouble.”

This section will take note of recent decisions from Canadian courts and tribunals that may be of interest to financial advisors and their firms. The decisions are chosen to reflect situations that advisors may encounter in their daily practices. “Avoiding trouble” does not include cases primarily concerned with fraud or criminal activity.

The section will be updated monthly. Submissions for consideration are welcome and should be sent to: pchisholm@investmentexecutive.com.

> Access to personal financial information/Privacy/Banks/Class actions, June 6, 2014
Privacy of clients and access to financial information
A class action was certified against the Bank of Nova Scotia for vicarious liability under Ontario’s new tort of “intrusion upon seclusion.” That tort, which deals with breach of privacy rights, first arose in 2012 in the context of a bank employee misusing confidential client information. These, and other cases, point to an escalating trend in regard to protecting clients’ personal financial information.

> Investments/Class actions/Common issues, May 27, 2014
Failure to establish method of finding common issues
In a class action claim against Merrill Lynch Canada Inc., the Alberta Court of Appeal refused certification. The court found the plaintiffs (clients) failed to establish a viable method for showing causation and damages for the class as a whole. The claim dealt with allegations that Merrill acted in its own interest and opposed to that of its clients. It arose in relation to holdings of a speculative biotech stock, near the end of 2000.

> Removal of trustees or executors, May 20, 2014
Trustee removed for creating conflict
A decision from the Supreme Court of British Columbia, Re: Newton Trust, deals with the issue of acrimony and dissension among joint trustees. The court held that the conflict was preventing the trust from being properly executed. A comment on the case and on the issue generally is available from law firm Lawson Lundell LLP.

> Advisor dismissal, Mar. 7, 2014
Advisor successfully sues CIBC over termination
A former top investment advisor at CIBC successfully challenged her dismissal for cause. The British Columbia Supreme Court ordered that the bank make a correction to its filing about the dismissal with IIROC. The filing had effectively prevented the plaintiff from continuing to work as an advisor.

> Divorce/Business practice, Feb. 21, 2014
Advisor’s book of business ruled a family asset
British Columbia Court of Appeal rules that a financial advisor’s book of business is a family asset; and that the book of business and a related business debt must be equally divided.

> Broker accounts, Feb. 11, 2014
Delayed investor complaint may be dismissed
The Quebec Court of Appeal ruled that an aggrieved investor who waits too long to lodge a complaint against a broker will have their claim dismissed.

> Advisor defamation, Feb. 3, 2014
Advisor defamation lawsuit to proceed
An Ontario court allowed a lawsuit brought by a pair of advisors against their former firm to proceed. The advisors allege that the firm, Manulife Securities Inc., intentionally defamed them in a regulatory filing, making them unemployable in the industry.