Suitability

OBSI's approach to investment suitability and loss assessment

In many of the investment complaints we receive each year about advice-based accounts, investors complain that they received poor advice, their investments or investment strategies were unsuitable and/or that their investments did not perform as they expected. In such "suitability" complaints, investors ask to be compensated for the investment losses they incurred.

There have been numerous steps along the way of what has been a comprehensive process of consultation on OBSI's investment suitability and loss assessment process. OBSI has published two consultation papers; participated in an industry working group; solicited opinions from experts in loss valuation and the law; held three information sessions, one for each of the public, IIROC members and MFDA members; and consulted regularly with securities regulators, industry participants, investor representatives, and OBSI's independent Consumer and Investor Advisory Council. 

Regarding loss assessment, we provide alternative approaches for consideration that have been used by Canadian courts, financial services ombudsman offices in other jurisdictions, lawyers in settlement negotiations, and our Participating Firms in responding to client complaints. To view our Process for Assessing Investment Suitability and Compensable Losses click here.

In 2011 OBSI issued for public comment a consultation paper detailing our investment suitability and loss assessment process. After considering the feedback received, on May 10, 2012 we issued a second consultation paper detailing a series of proposed changes to our process. OBSI also published the Board of Directors' decision on changes to the methodology and OBSI's response to stakeholder feedback.