FAIR Canada commends the OSC for the temporary order issued against Global RESP on July 26, 2012. Among other things, the order requires Global RESP to retain an independent consultant to examine its policies, practices and procedures relating to: documenting and collecting clients’ know-your-client information (“KYC Information”); ensuring that all trades are suitable for Global RESP’s clients; and preparing and distributing marketing materials. The order also requires Global RESP to retain an independent monitor, and not to accept any new clients or accounts from existing clients until this monitor is in place. The monitor will follow up with all new clients within 30 days of investment to confirm: that KYC information was recorded accurately; that the investment was suitable for the client; and that the client understands the associated fees.
Earlier this year, FAIR Canada called for an overhaul of group scholarship plan rules, stating that we believe such plans to be generally poor savings vehicles with little or no benefits to consumers. FAIR Canada reminds Canadians that unbiased information regarding registered education savings plans is available at www.smartsaver.org.