Our Commitment to Investors
The IIROC maintains a strong commitment to the integrity of the Canadian marketplace and the protection on investors. As part of this commitment, we provide a robust and effective system of resources dedicated to investor protection and the fair resolution of disputes.
Resolving disputes amicably, fairly, and quickly is a priority for both investment dealers and their clients. Trust and mutual respect are at the heart of any successful client – investment advisor relationship. That’s why any disagreement needs to be dealt with quickly, effectively and in a manner that will maintain this relationship.
The first step for a client who has a complaint with his or her investment advisor or firm is to complain directly to the firm’s management or compliance department. A prompt letter of complaint is often the fastest and easiest way to resolve disagreements and settle disputes.
Statute of Limitations
Provincial statutes of limitations set time limits on filing court actions and accessing arbitration programs. Time limits vary from province to province. If you do not file within the time limit you might permanently lose your right to access arbitration, sure for recovery or enforce any claims you may have. You may wish to consult a lawyer to determine how best to proceed.
Your Options
If you need help in settling a disagreement with an IIROC Member firm, here are the options available to you:
IIROC Enforcement
The IIROC provides front-line regulation of day-to-day activities involving clients and their investment dealer firms.
The IIROC’s Enforcement Department investigates complaints about activities such as making unauthorized transactions and recommending unsuitable investments. Those who are found guilty of violating IDA rules and regulations face penalties including fines, restrictions on dealings with the public, suspensions, permanent bans and expulsion from membership.
If you believe that your investment advisor has acted improperly, making a complaint to the IIROC is important as it allows us to prevent continuing abuses.
Ombudsman for Banking Services and Investments (OBSI)
OBSI offers a free, independent and impartial resolution service for clients of any firm that is a member of one of four non-profit organizations: the IIROC; the Mutual Fund Dealers Association (MFDA); the Investment Funds Institute of Canada (IFIC); or the Canadian Bankers Association (CBA). Disputes can involve claims for restitution of up to $350,000.
In order to use OBSI, investors must first try to resolve their dispute with their investment dealer firm. Once it is clear that a resolution of the matter is not possible, clients should take their complaint to OBSI immediately. OBSI requires that, as a general policy, investors submit their complaints within 180 days of completing the dispute resolution process at their investment dealer firm.
There are no fees associated with using OBSI and legal representation is not required. IDA Member firms are required to participate fully with any investigation carried out by OBSI.
If OBSI finds in favour of the client, it recommends a course of action to resolve the complaint, which may include compensation. All matters are confidential, although a summary of recommendations will be made public should the firm not comply with the recommendations.
OBSI is a participant in the Financial Services OmbudsNetwork(FSON), an information and assistance service for the consumers of the Canadian financial industry. Clients with non-securities industry complaints should contact the Centre of FSON at (866) 538-FSON (3766) or www.cfson-crcsf.ca.
Arbitration
Clients of IIROC Member firms may also choose arbitration, a cheaper and faster alternative to pursuing compensation through the civil court system. IIROC Member firms are required to participate if a client chooses arbitration.
Arbitration is a method of resolving a dispute in which the parties involved appoint an independent arbitrator to listen to their facts and arguments and to decide how the dispute should be resolved. Arbitrations are conducted by a neutral agency that provides arbitrators who are usually retired judges and lawyers knowledgeable about the securities industry. All aspects of the proceedings are confidential and all the hearings private, unless both parties agree otherwise.
Arbitration has its own set of straightforward rules that are established by provincial legislation. An arbitrator’s decision is binding. In choosing arbitration, the parties give up the right to pursue the matter further through the courts or any other resolution service, including OBSI, and they sign an agreement to this effect at the beginning of the process. Parties can choose to be represented by a lawyer during the arbitration process but this is not a requirement.
Costs for arbitration range between $3,000 and $4,000 for a typical dispute. Costs are generally split equally between the parties, but the arbitrator can make a different determination. The arbitrator may also assign, at his or her discretion, one party’s legal cost to the other party in the arbitration.
The arbitration program is available to clients of IIROC Member firms who have already made a written complaint to the firm. To qualify for arbitration, the dispute in question must involve $100,000 or less, and have occurred after the start date of the program in each province.
Autorite des marches financiers (AMF)
In Quebec, the Autorite des marches financiers, the regulatory body charged with administering the regulatory framework governing the financial sector, has as its mission to provide assistance to consumers and users of financial products and services, and to see to the implementation of protection and compensation programs for these consumers. The Autorite also operates an Information Centre to answer investor’s questions.
Upon receipt of a complaint from a client residing in Quebec, a firm must, without delay, notify the client in writing that, in the event of dissatisfaction with the processing of the complaint or with the result of the firm’s examination of the complaint, the client may request that a copy of the complaint file be transferred to the AMF. The AMF will review the file and, if it deems appropriate, offer a mediation service for the parties. Participation is voluntary and requires the consent of both the firm and the client. This service is free.
What to Do
Making a Complaint to the IIROC
We require a written complaint with your name and contact information, the name and contact information of any individual or firm mentioned in your complaint, and specific details of how, why and when you encountered problems with your investments or investment professional. We recommend that you include as much relevant documentation as possible to enable us to assess your complaint properly.
Although you are not required to use a specific form, you may wish to use our Customer Complaint Form, available on our website, www.iiroc.ca.
You may also call our toll-free Info/Complaint line, (877) 442-4322, to learn about our Complaint process, to have a Customer Complaint Form mailed to you, or for general information about the IIROC.
Choosing Arbitration
Clients who wish to begin arbitration proceedings should prepare a summary of their dispute, the amount in question, details of attempts to resolve the matter with the firm, and appropriate supporting documents such as client account statements.
Atlantic Provinces and Ontario
ADR Chambers
C/o The IIROC Program Administrator
112 Adelaide Street East
Toronto, Ontario M5C 1K9
Tel.: (416) 362-8555 or (800) 856-5154
Fax: (416) 362- 362-8825
Website: www.adrchambers.com
Email: adr@adrchambers.com
Quebec
Canadian Commercial Arbitration Cemtre
215 Caron Street
Quebec, Quebec G1K 5V6
Tel:(418) 649-1374 or (877) 909-3794
Fax: (418) 649-0845
Website: www.ccar-adr.org
Email: info@ccar-adr.org
BC, Prairies, NWT, Nunavut, and Yukon
British Columbia International
Commercial Arbitration Centre
Suite 103, 1260 Hornby street
Vancouver, British Columbia V6Z 1W2
Tel: (604) 684-2821 or (877) 684-2821
Fax: (604) 736-9233
Website: wwwbcicac.com
Email: info@bcicac.com
Contacting the Ombudsman for Banking services and Investments
Please call OSBI toll-free at (888) 451-4519 or visit their website, www.obsi.ca.
Written complaints are required and may be sent by:
Email:ombudsman@obsi.ca