Since December 31, 2021, Canadian investment firms must ask clients to name a Trusted Contact Person (TCP) and may place temporary holds on transactions if they suspect their client may be subject to financial exploitation or diminished capacity. These measures are designed to protect investors during vulnerable situations – such as cognitive decline, family pressure, and suspected abuse. They are based on recommendations from FAIR Canada’s 2017 joint report on vulnerable investors.
The tools only work if investors use them. A TCP is someone you name in advance, usually a family member or close friend, whom your firm can contact if it has concerns about your account. The TCP does not have authority over your investments. They cannot make trades, access your account, or make investment decisions on your behalf. Instead, their role is simpler but important: they give your firm someone to contact if something seems wrong, helping to address issues before they get worse.
Naming a TCP only takes a few minutes. Most firms let you do this through your online account, by phone, or at your next account review. Choose someone you trust to act in your best interests, who is not involved in managing your finances, and can be reached if needed.
For more information, the B.C. Securities Commission’s InvestRight website maintains a helpful hub on elder financial abuse, and the OSC’s GetSmarterAboutMoney site has a clear explainer on Trusted Contact Persons and how the process works.
With World Elder Abuse Awareness Day on June 15, this is a practical step worth taking, and worth encouraging the people you care about to take as well.