CSA flags concern over investment firms' processes
The way that investment and banking firms handle complaints has raised concern of industry regulators.
The issues were flagged Thursday in a joint notice from the Canadian Securities Administrators (CSA), Investment Industry Regulatory Organization of Canada (IIROC) and Mutual Fund Dealers Association of Canada (MFDA).
It says that some registered firms’ complaint handling systems fall short of the requirements of the Ombudsman for Banking Services and Investments (OBSI) and there are also concerns about the use of an internal ‘ombudsman’ by some.
“We expect firms to participate in OBSI’s dispute resolution process in a manner consistent with their obligation to deal fairly, honestly and in good faith with their clients and to respond to each customer complaint in a manner that a reasonable investor would consider fair and effective,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.
The president and CEO of IIROC, Andrew J. Kriegler, added that investor confidence in Canada’s capital markets relies on trust and the integrity of the industry’s operators. He said that the regulator expects its members to handle client complaints “effectively, fairly and expeditiously.”
His words were echoed by Mark Gordon, President and CEO of the MFDA who said response to complaints should be “fair and timely.”
The regulators are considering stronger powers for OBSI on behalf of investors, something raised in an independent report last year.
The issues were flagged Thursday in a joint notice from the Canadian Securities Administrators (CSA), Investment Industry Regulatory Organization of Canada (IIROC) and Mutual Fund Dealers Association of Canada (MFDA).
It says that some registered firms’ complaint handling systems fall short of the requirements of the Ombudsman for Banking Services and Investments (OBSI) and there are also concerns about the use of an internal ‘ombudsman’ by some.
“We expect firms to participate in OBSI’s dispute resolution process in a manner consistent with their obligation to deal fairly, honestly and in good faith with their clients and to respond to each customer complaint in a manner that a reasonable investor would consider fair and effective,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.
The president and CEO of IIROC, Andrew J. Kriegler, added that investor confidence in Canada’s capital markets relies on trust and the integrity of the industry’s operators. He said that the regulator expects its members to handle client complaints “effectively, fairly and expeditiously.”
His words were echoed by Mark Gordon, President and CEO of the MFDA who said response to complaints should be “fair and timely.”
The regulators are considering stronger powers for OBSI on behalf of investors, something raised in an independent report last year.
