20 November 2023
By Ellen BessnerThe annual enforcement report of the Canadian Investment Regulatory Organization (CIRO) showed a huge jump in complaints at mutual fund dealers (2,541 in 2023, up from 1,635 in 2022), with only 96 investigations completed compared to 133 the previous year. There was also a drop in proceedings commenced (68 in 2023, down from 87 in 2022). (For investment dealers too, complaints were up and proceedings commenced were down, though more investigations were completed — 91 in 2023 versus 76 in 2022.)
1 November 2023
By Ellen Bessner, Brittany ShalesA closer look at CIRO’s enforcement trends identifies issues affecting registrants that remain unanswered – further, we hope that this report will be rethought to introduce more meaningful stats for better understanding and transparency.
25 October 2023
By Brittany ShalesThis is the first column in a two-part series on what advisors can to do to make their practice more inclusive. This column discusses the importance of advisors showing that they are an ally to LGBTQI+ clients and provides tips on how to put allyship into practice. The second column will be about key questions to ask LGBTQI+ clients to better understand the unique financial circumstances and planning required to set them up for success.
11 October 2023
By Zachary Pringle, Ellen BessnerWhy wouldn’t your clients want to appoint you, their trusted advisor, as their power of attorney and executor/estate trustee? Advisors develop comprehensive knowledge of their elderly clients’ personal and financial circumstances, and foster a deep sense of trust with their clients. It is reasonable for your clients to view this appointment as a natural progression in their relationship with you, and certainly a testament to your strong relationship building. So while you may want to accept the appointment, regulations and your dealer’s policy manual specifically prohibit it!
19 July 2023
By Ellen BessnerIf you are thinking of leaving your dealer to join another, or even to start your own firm, there are some important issues to consider to ensure you protect your business, reputation and clients. These include informing yourself of your legal rights and obligations before you pull the trigger.
31 May 2023
By Ellen BessnerWhen I sat down to write this article, I could not settle on which issues to warn you about. While this article might be an entire year’s debrief, there are too many issues to warn you about to wait until year-end. My goal is to protect you from falling into these traps and to save your licence, livelihood and reputation.
13 March 2023
By Ellen BessnerAdvisors will be under the regulatory microscope as they are audited for compliance with the client-focused reforms (CFRs) and with their firms’ internal policies. Further, since a considerable number of your clients are seniors, it is likely that their children, as powers of attorney or executors and beneficiaries, will make suitability complaints if there are any account losses from a volatile market.
1 February 2023
By Ellen BessnerI have spent years writing and presenting workshops with direct, tough messages trying to convince advisors that they need to integrate compliance with growing their businesses. When they do this, they reduce their business risks and protect their licences and reputations. This article is more tough love.
14 November 2022
By Ellen BessnerHow to set your client-advisor relationship up for success may seem like a strange topic for a litigation lawyer who has seen the results of relationships gone bad, when the client is dissatisfied, issues complaints to the dealer and regulator, and sues in court.
18 October 2022
By Ellen BessnerIn a previous article on client investment knowledge/sophistication, I explained how judges and regulators assess the client’s investment knowledge as well as their understanding of the product risks when assessing the merits of a client suitability complaint. In this article, I will explain how to assess client knowledge and support your choice so that when you are faced with a client complaint and called onto the carpet by your dealer, regulator, and OBSI or a judge, you will be armed with the evidence you need.