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OBSI's Terms of Reference underwent a significant amendment in 2002. In 2007, the Board of Directors approved an amendment to align the Terms of Reference with the Framework for Cooperation.

From the Ombudsman’s desk • International Ombudsman News • Case Study - Mitigation and minimizing losses • OBSI Outreach • OBSI in the news

A Canadian couple living in the UK had RRSPs with a Canadian investment firm. While visiting Canada, they met their advisor to discuss their accounts. They were upset because the advisor had kept their money in cash for almost a year and were also upset because for two months the money had only earned 0.25% interest. The advisor explained that he was waiting for the right time to invest and that the money had not been invested in a higher interest account because of an administrative error. He discussed some potential stock picks.

From the Ombudsman’s desk • OBSI Outreach • OBSI's 2007 Annual Review • Case Study - A rewards programme past its prime • OBSI in the media • Upcoming Osgoode Event - Managing Internal and Regulatory Investigations

When shopping for a credit card in 1993, the client was attracted to one of his bank's cards which included a reward program for first-time homeowners. The more spent with the card, the more he accumulated reward "dollars" which could be credited toward an undiscounted (i.e. posted rate) mortgage from the bank.

The clients, a retired couple in their early 70s, were approached by an advisor who had been referred to them by a friend. The advisor recommended that they take out a $90,000 home equity line of credit and use the money to invest in various equity mutual funds. The couple had $15,000 in retirement savings and had only fair investment knowledge. Their income came from government and company pensions. Since they did not have adequate income to cover monthly interest payments on the loan, the advisor set up a regular withdrawal to be taken from the investment account.

In early 2002 a client sold a rental property for $175,000. He asked his accountant if there was an investment product that would guarantee his capital and provide him with a regular income. His accountant suggested income trusts. Through an advisor referred to him by his financial institution, he invested in income trusts recommended by the advisor. However, the distribution from the trusts soon reduced to a trickle. Even though the capital was guaranteed, the client was not happy and looked for an alternative.

Consultation on OBSI's mandate • Independent review of OBSI • IDA proposes new complaint-handling rules • Case Study: An inconvenient mortgage • RESP Dealers Join OBSI • New OBSI brochure available Roundtable on Dispute Resolution in Retail Investor Loss Cases

CONSULTATION PERIOD IS NOW CLOSED

OBSI's mandate, or Terms of Reference, last underwent significant amendment in 2002 when we welcomed the members of the IDA, MFDA and IFIC, and expanded our coverage on the deposit-taking side as well. Much has changed in the last five years. More recently, along with the insurance ombudservices, we have approved the Framework for Cooperation with the federal and provincial regulators that have set out expectations for the scope and level of service we offer as part of the consumer protection system in financial services.

A couple took out a mortgage from a bank, agreeing that their payments would include property taxes that the bank would remit to the city. A month later, they received a notice from the city saying their taxes were due. After some finger-pointing about whether the bank's or clients' lawyer was to blame, the bank agreed to reprocess the paperwork to make sure the taxes would be paid automatically. Four months later, another notice arrived from the city: their taxes were overdue. Upset with the two missed payments, the couple told the bank they were considering moving the mortgage because of the possible impact on their reputation with the city and their credit ratings.