Number of investment cases opened by Canadian Ombudsman rises in Q1 FY19

Maria Nikolova

Investment cases opened increased above the eight-quarter average, from 87 to 97.

Canada’s Ombudsman for Banking Services and Investments (OBSI) today announces some key metrics about its work during the period from November 1, 2018 to January 31, 2019.

In the first quarter of FY 2019, OBSI saw a decrease in cases opened from the eight-quarter average of 179 to 152, representing a 20% decrease. The sharp fall in total and bank cases opened is due to the departure of the Bank of Nova Scotia (BNS) and its subsidiary Tangerine at the end of the 2018 fiscal year.

The number of investment cases opened, however, increased above the eight-quarter average, from 87 opened cases to 97.

The first quarter saw common shares complaints fall to 18, representing a 38% decrease below the eight-quarter average. Apart from common shares, investment products complaints varied only slightly from the average over the past eight quarters.

Source: OBSI.

Suitability remained the most frequently complained about investment issue in the quarter to end-January 2019, even though such complaints dropped to 17 compared to the eight-quarter average of 21. The number of incomplete/inaccurate disclosure complaints also fell, decreasing from an average of 8 complaints over the past eight quarters to 3 complaints in the three months to January 31, 2019..

Let’s recall that, in FY 2018, OBSI registered a 5% increase in cases opened, from 721 in 2017 to 760 in 2018. Investment complaints decreased from 351 cases opened in 2017 to 345 in 2018. Banking cases opened continued a multi-year trend, increasing from 370 in 2017 to 415 in 2018, up 12% year over year.

Compared to 2017, there were decreases reported in the top investment issues in 2018 in all categories except incomplete/inaccurate disclosure, which rose 17%. Cases related to suitability of margin or leverage decreased 39% compared to 2017.

Canadian investors are still targeted by binary options fraudsters in the face of the ban on the offering and marketing of these products. In a Bulletin published in August 2018, OBSI warned that binary options present a systemic risk.

OBSI said back then it had received numerous complaints from investors who used their credit card to purchase binary options. These investors later disputed credit card charges related to these transactions. They believed that because they did not receive the promised services (such as the ability to withdraw their investment capital) that the issuing credit card company should allow a chargeback or reversal of the charge. The Ombudsman found that the banks involved were not at fault for the failure of the chargeback request because they followed the normal chargeback policies and procedures.

Read this next

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

Midas.Investments has released three new investment strategies on its custodial CeDeFi platform, creating new opportunities during the ‘crypto winter’.   The platform merges diverse approaches to digital asset management into single-click products to let investors gain steady profits in any market conditions — including the ongoing bear market. a custodial CeDeFi platform, CeDeFi: Unlocking the […]

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.

<