Change is within reach for Canadian investors, and FAIR Canada is helping to lead the way. Together with other consumer advocacy groups, we submitted a joint letter to the Canadian Securities Administrators (CSA) with a resounding call: give the Ombudsman for Banking Services and Investments (OBSI) the power to make binding decisions.
Why does this matter? Right now, investors who are treated unfairly often face roadblocks when seeking to resolve complaints. Firms can ignore OBSI’s recommendations or offer low settlements, leaving investors frustrated and empty-handed.
Now, the CSA is poised to level the playing field with its proposal to give OBSI binding authority. No more settlements that shortchange investors – just real, enforceable outcomes that make the system work.
Our coalition comment letter urges regulators to:
- Finalize these reforms quickly and encourage governments to adopt supporting legislation.
- Oversee OBSI in a way that is clear and efficient, without unnecessary bureaucracy.
- Set a $100,000 threshold for appointing an external decision maker (EDM) to review recommendations.
- Make sure EDMs are chosen quickly, and delays are avoided.
- Maintain the six-year limitation period so investors have enough time to seek help.
Strengthening complaint handling remains essential for investor protection. Giving OBSI binding authority for investment complaints will provide harmed investors with a fair and reliable way to resolve issues, helping to restore confidence in Canada’s financial system.
The Path Forward
As the CSA completes its work on the new OBSI framework for binding recommendations, we look forward to next steps. In the meantime, FAIR Canada urges all provinces and territories to follow Saskatchewan’s example and prepare to pass legislation that will enable the impending framework to be established in Canada. Investors can also contact their provincial representatives to share their views. Contact information for securities regulators can be found on the CSA website, and members of provincial legislatures can be found online.