The 2018 Annual Report of the Joint Regulators Committee (JRC) of the Ombudsman for Banking Services and Investments (OBSI) (the Annual Report) has been published jointly by its member organizations: the Canadian Securities Administrators (CSA), the Investment Industry Regulatory Organization of Canada (IIROC), and the Mutual Fund Dealers Association of Canada (MFDA).

The goals of the JRC are to promote investor protection and confidence in the external dispute resolution process (the dispute resolution process) and facilitate information sharing and monitor the dispute resolution process between registered dealers and clients; support fairness, accessibility and the effectiveness of the dispute resolution process; and, facilitate the consultation process among JRC members and the OBSI.

The Annual Report reviews the actions of the JRC during the past year, which include:

  • Identifying and addressing systemic issues: In 2018, there was one matter relating to fee disclosure reported to the JRC that OBSI determined as being a systemic issue. In response to OBSI’s notification, the applicable regulator reviewed the matter and took appropriate action;
  • As part of its mandate to continuously monitor for investor-related complaints of issues such as compensation refusals and the settling for lower amounts than recommended by OBSI, the JRC found no compensation refusals in 2018. However, the JRC noted that among the closed investment-related cases ending with monetary compensation in 2018, approximately 8% were settled for amounts lower than recommended by OBSI as compared with 15% the year before;
  • The JRC continued to facilitate consultation among its members and the OBSI, providing feedback on proposed changes to the OBSI’s key documents; and,
  • An independent evaluation of the OBSI and of its practices and investment mandate. The OBSI released its findings in June, 2016, Independent Evaluation of the Canadian Ombudsman for Banking Services and Investments’ (OBSI) Investment Mandate (the Report).

The JRC was founded as a result of  amendments to National Instrument NI-31-103, Registration Requirements and Ongoing Registrant Obligations (the Amendments) coming into force in May 2014.  The Amendments required all registered dealers and advisers to make OBSI available to their clients as their dispute resolution service. Initially, all participating CSA jurisdictions except for Quebec’s Autorité des marchés financiers (AMF) signed on, with the AMF subsequently joining in 2015.

CSA Staff Notice 31-335: 2018 OBSI Joint Regulators Annual Report is available for download from the websites of the participating jurisdictions.

For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.

This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.