For the second year in a row, problems with investment advisors top the list of complaints received by securities regulators across Canada with issues such as suitability, customer service and registration as common complaints.
“The complaints we are receiving across the country stem from the actions of those registrants who deal directly with retail investors,” said Doug Hyndman, Chair of the Canadian Securities Administrators. “While our enforcement divisions are clamping down on these activities, in many cases, there are simple steps investors can take to avoid these types of problems.”
The top five complaints are:
- Suitabiltiy of investments;
- Unregistered sales of securities;
- Unregistered distributions or exempt market securities;
- Scams and frauds including unregistered sales; and
- Customer service regarding account statements and confirmations.
The CSA say investors who have complaints should take the following steps:
- Contact the advisor directly – be sure to make detailed notes of any conversations.
- Write to the branch manager with a copy to the firm’s compliance officer.
- Contact the provincial or territorial securities regulator in writing.
- Note that securities regulators cannot get investors’ money back. Instead, investors should contact a lawyer and they have the option of going to small claims court or proceeding to civil court or an arbitration program.
Regulators say Canadians may also consult the Financial Services OmbudsNetwork which includes the Ombudsman for Banking Services and Investments (www.obsi.ca) for help in resolving customer complaints in the banking, trust company, securities and mutual fund industries.