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

    Fintech

    Volt secures EMI license, expands payment solutions in UK

    Volt has successfully obtained an Electronic Money Institution (EMI) license from the UK’s Financial Conduct Authority (FCA).

    Retail FX

    ASIC bankrupts finfluencer Tyson Scholz over stock tips

    The Australian Securities and Investments Commission (ASIC) has effectively bankrupted Tyson Robert Scholz, the figure behind “Black Wolf Pit.” The action marks a significant crackdown on so-called ‘finfluencers’ and individuals providing unlicensed financial services.

    Digital Assets

    Green Bitcoin Presale Raises $1M as Bitcoin Approaches its ATH

    The eco-friendly crypto project Green Bitcoin has seen its limited-time presale phase cross $1 million in funding. With an innovative gamified staking model and energy-efficient foundation, Green Bitcoin offers token holders a way to stake their tokens and generate yield.

    Web3

    Introducing QuickNode Streams: Elevating Blockchain Data Management

    Discover QuickNode’s Latest Innovation: Streamlining Blockchain Data Streaming for Enhanced Efficiency and Accessibility. Explore the Future of Blockchain Technology with Streams.

    Industry News

    John Oliver rips into MetaTrader over role in ‘Pig Butchering’ scams

    “If your friend told you to download an app, and you saw it in the app store with good reviews, you might assume everything on it was legitimate. In before, you saw MetaTrader’s logo which looks like three men in suits jerking each other off under a table – an appropriate metaphor for cryptocurrency if I have ever seen one,” Oliver quipped.

    Digital Assets

    Coinbase supports Nethermind and Erigon to ease Geth dependency

    Coinbase plans to support additional execution clients as America’s largest crypto platform aims to improve the Ethereum blockchain’s resilience and mitigate the risks associated with the network’s heavy reliance on a single client.

    Opinion

    How AI Transforms Trading: Current Trends and Perspectives

    In 2023, we observed a boom of news about Artificial Intelligence (AI) in every field, whether finance, tech or medicine. In 2024 and later, AI will take an even more significant place.

    Industry News, Uncategorized

    FCA wants to tackle lack of competition in wholesale data market

    “Complex licensing practices by MDVs and trade data providers who deliver their data through MDVs increase costs for data users. Many Market Data Vendor (MDV) users have to hold licences both from the data generator (such as a trading venue) and from the MDV through which they access data. We have seen an increasing proliferation of licences for similar data types and different use cases. Complexity also drives additional costs for data users, such as operating a compliance team.”

    Digital Assets

    SEC objects to Terraform’s $166 million legal retainer

    The U.S. Securities and Exchange Commission (SEC) has lodged objections against Terraform Labs for a $166 million retainer payment to its legal representatives ahead of its trial.

    <