Case Studies - Investments | Ombudsman for Banking Services and Investments

Savings are at risk when scholarship trust plan rules are overlooked or misunderstood

Registered Education Savings Plans (RESPs) are complex investment products that usually are invested for many years before the money can be used for a child’s post-secondary education.

DIY investing leads to more than $100,000 in losses

If you invest through a do-it-yourself account at an order-execution-only (OEO) firm, you can pay significantly less in fees than you would to an advisor.

Investors incur significant losses and seek compensation, believing themselves to be unsuitably invested in high-risk securities

Investment suitability is not determined on the basis of losses.

Retiree seeks compensation for financial advisor’s alleged lack of service and poor advice

Financial advisors are responsible for providing sound investment advice to match the financial needs and goals of their clients.

Investor incurs significant losses from unsuitable advice and excessive trading and accepts low settlement offer

OBSI is committed to conducting impartial investigations and recommending fair outcomes for both firms and consumers. When consumers escalate their complaints to OBSI, firms are obligated to participate in our process in good faith.

Consumer alleges online investing app misled her about margin borrowing and interest obligations

Consumers who open online investing accounts (also known as discount brokerage or “order execution only” accounts) are responsible for reviewing all account agreement terms and conditions, making their own trades, and monitoring their account activity.

High-risk exempt market securities unsuitable for older investor with limited assets

In December 2010, Ms. R was 60 years old, had been retired since 2008, and had been divorced for several years. Between 2008 and 2010, her annual income averaged $17,500. She owned her home that was valued at $352,000 and had $100,000 in investable savings. Her investment objective was to generate income from her investment portfolio to supplement her income.

High-risk investments suitable for this senior investor, but DSCs unsuitable

Mr. H moved his investment portfolio to a new advisor in 2008. At the time, he was 71 and was still working full-time as a physician. He was an experienced investor with an investment portfolio of approximately $1.4 million. He accepted his advisor’s recommendations to buy gold and precious metals mutual funds with DSCs.

Unsuitable investment in high-risk products and over concentration lead to financial harm

Ms. T was a retired book editor, living on her own. Her government retirement benefits were supplemented by a small employment pension. Her only financial assets were approximately $30,000 invested in Government of Canada bonds.

Estate planning in a time of crisis leads to miscommunication and wishes not being followed

In 2014, Mr. M was gravely ill. At the time, most of his assets were held in a sizeable RRIF account, with his three sons designated as beneficiaries. His existing will provided that each of his three adult sons would receive an equal share of his estate outright, but this no longer matched his wishes because he felt that two of his sons were not capable of responsibly managing a sizeable inheritance.