OBSI releases 25th Anniversary Report: a look back at its evolution and financial complaint trends
Toronto, March 31, 2022 – The Ombudsman for Banking Services and Investments (OBSI) has released a report to commemorate 25 years of financial services ombudsmanship in Canada and to reflect on the organization’s growth, accomplishments, and challenges since opening its doors in 1996.
“Throughout its 25-year history, OBSI has worked with financial sector regulators, firms, industry, and consumer groups to establish and strengthen access to independent ombuds services for Canadian financial consumers,” said Sarah Bradley, Ombudsman and CEO, OBSI. “From the beginning, our vision has been to help to build fairness, effectiveness, and trust in the financial services sector. In our current environment – amid the pandemic and related economic pressure and market volatility – the need for accessible, independent ombudsman services that serve the public interest is more important than ever,” said Ms. Bradley.
Through a retrospective lens, OBSI’s 25th Anniversary Report captures key periods of growth and significant milestones in OBSI’s 25-year history. The report also provides a glimpse into the complaint trends in Canada’s financial services sector, identifying the leading product complaints and issues among Canadian consumers over the last 25 years.
Report highlights
- Since opening its doors in 1996, OBSI has responded to over 125,000 Canadians who reached out to us with inquiries and requests for assistance.
- OBSI has investigated and resolved over 13,000 cases and facilitated settlements of over $39 million dollars in compensation.
- In the aftermath of the 2008 global financial crisis, OBSI’s case volumes increased significantly and never returned to pre-crisis levels.
- In 2020, market volatility and economic uncertainty associated with the COVID-19 pandemic triggered a sharp rise in banking and investment case volumes that continued into 2021, setting a new case-opening record over OBSI’s 25-year history.
OBSI complaints over time
The report also identifies the products and issues most often at the centre of banking and investment complaints as well as their fluctuations over the past 25 years. Some notable trends include:
- Banking disputes by issue: Case volumes related to service concerns have led banking disputes for many years, while fraud cases have surged to record levels twice – in the years following the global financial crisis and again in 2021 in the wake of the COVID-19 pandemic.
- Banking disputes by product: Credit card complaints to OBSI have steadily increased since 1997, with a significant surge between 2017 and 2021, largely related to chargeback and fraud issues.
- Investment disputes by issue: Suitability has long been the leading issue for investors who turn to OBSI for help, and suitability complaints saw a sharp rise during the post-global financial crisis era. In 2021, however, service issues replaced suitability as the most complained-about investment issue, largely as a result of a surge in complaints relating to DIY online investing platforms.
- Investment disputes by product: Complaints relating to mutual funds have led concerns among investors in the post-financial crisis era and into the pandemic, while complaints about common shares have spiked twice – following the global financial crisis associated with suitability complaints, and again in 2021 associated with DIY investment complaints.
Methodology
The case data in this report has been compiled from OBSI’s past annual reports and its internal data sources. Over the years, OBSI’s reporting and categorization of products and issues has evolved significantly to align with mandate expansions and to reflect the evolving expectations of regulators and the public. Where possible, the report identifies emerging trends and highlights the products, issues, and influences that were prominent in each historical era.
The report also briefly looks ahead to OBSI’s future. “The financial services sector, and the public interest more broadly, is best served by a strong ombudsman that inspires confidence in the system,” said Ms. Bradley. “Our expertise and 25 years of experience put us in an excellent position to fulfill those needs, and we look forward to elevating the services we offer to meet the opportunities and challenges of this new era.”
OBSI’s 25th Anniversary Report: A retrospective look at the organization’s evolution and complaint trends in Canada’s financial services sector can be found on www.obsi.ca in both English and French.
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Canada’s Ombudsman for Banking Services and Investments (OBSI) is a national, independent and not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with the stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.
For more information or to request an interview with Ms. Bradley, contact:
Mark Wright, Director, Communications and Stakeholder Relations
416-287-2877 ext.2225
publicaffairs@obsi.ca