Independent Evaluation of OBSI’s Investment Complaints Mandate Released

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TORONTO, ON / ACCESSWIRE / June 13, 2022 / Today, the Ombudsman for Banking Services and Investments (OBSI) released the results of its 2021 independent evaluation of its operations and practices for investment related complaints. OBSI undertakes independent expert evaluations of its operations every five years.

This evaluation was conducted by Professor Poonam Puri, one of Canada’s leading experts in corporate governance, corporate law, and securities law. Professor Puri delivered her findings to the OBSI Board of Directors and to the OBSI Joint Regulators Committee, which includes representatives from the Canadian Securities Administrators (CSA), the Investment Industry Regulatory Organization of Canada, and the Mutual Fund Dealers Association of Canada.

The report concluded that OBSI had met and exceeded its obligations under the Memorandum of Understanding (MOU) with the CSA, and found that OBSI:

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The report also made 22 recommendations, including that OBSI be given binding authority when rendering its decisions. This was also recommended in the previous review, completed in 2016. The report stated that OBSI’s inability to universally secure redress for consumers through the name and shame system continues to limit its effectiveness, because it provides an economic incentive for both parties to settle for amounts below the OBSI recommendation. The reviewers observed that binding authority is more consistent with international best practices and would bring more legitimacy to the system.

“We are pleased to see that Professor Puri’s report recognizes OBSI’s strengths and achievements, while putting forward important ideas for improvement,” said OBSI Chair Maureen Jensen. “The board would like to thank her for her excellent work leading this review. We will consider the recommendations carefully and engage with all of our stakeholders to ensure that OBSI makes any changes needed to continue to fulfill its public interest mandate.”

To read the 2021 investment mandate report, click here. Previous independent reviews can be found here. The independent review of OBSI’s banking mandate is expected to be published in the coming weeks.

OBSI’s Terms of Reference, its MOU with the CSA, and Bank Act regulations require OBSI to be independently evaluated every five years. The purpose of these independent reviews is to determine whether OBSI is fulfilling its regulatory obligations and operating effectively in accordance with recognized best practices for financial services ombudsmen.

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Canada’s Ombudsman for Banking Services and Investments (OBSI) is a national, independent, not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with all stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.

For more information, contact:

Mark Wright, Director, Communications and Stakeholder Relations

416-287-2877 ext.2225

publicaffairs@obsi.ca

SOURCE: Ombudsman for Banking Services and Investments

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