What investment products and services caused the biggest OBSI caseload in 2024?

The number of public inquiries received by the Ombudsman for Banking Services and Investments was lower in 2024 than in the previous year, but its investigations case load increased.
OBSI responded to more than 16,000 public inquiries, down 5% from a record number in 2023, while the number of investigations it opened totaled 3,202, a 5% increase the 2023 record, marking a new high.
Cases that resulted in an investigation were driven by a 7% increase in complaints related to the banking industry, to reach a new record high of 2,553, while those related to investment products and services were down by 2% year-over-year to 649, leaving 2023’s record intact.
Banking complaints were heavily weighted by those relating to fraud which accounted for 38% of all of those that OBSI handled, while service issues took a 21% share, 7% were about credit cards, and 6% related to product information disclosure or misinformation following a significant rise in these complaints.
For the investment industry, more than a third of all complaints where cases were opened related to service issues and product suitability. While each of these types of complaint accounted for 17% of the total investment cases handled by OBSI, this represented a 7% increase for service issues while investment product suitability complaints were down by 38%.
Fraud was involved in 14% of all investment cases opened in 2024, down 5%, while fee disclosures took an 11% share of cases, a 76% increase year-over-year.
“2024 was a pivotal and exciting year for OBSI,” said Sarah Bradley, Ombudsman and CEO, OBSI. “During the year, we responded to the highest ever levels of consumer demand for our services and we successfully prepared for our newly expanded role as the single ombudsman for banking in Canada.”
The most complained about investment products were:
- Common shares - 36% of all investment complaints, up from 27% in 2023
- Mutual fund cases decreased 34% year over year, and represented 30% of investment cases
- Crypto assets remained the third most common product for complaints for investors this year, decreasing 11%.
Investment industry low settlements
The stats are included in OBSI’s annual report which, for the first time, also included low settlements received by consumers following the Ombudsman’s recommendations, which are not binding and often result in firms offering lower amounts which consumers feel they have little option other than to accept.
Although there were no banking complaints where consumers settled for below OBSI recommendations in the 2019-203 period, there were four in 2024, but these were relatively low amounts in any case.
For investment cases, there were 33 cases from 2019-2023 where firms and consumers settled for amounts below OBSI’s recommendations, amounting to more than $1.1 million less received by complainants than was suggested as fair. In 2024, just two investment cases were settled for less than recommended, but this still amounted to almost $290K received by consumers.