Investment Industry Regulatory Organization of Canada President and CEO Andrew J. Kriegler poses for a portrait on April 27, 2018. One of the watchdogs for Canada’s investment industry says it’s working towards creating regulatory safeguards for clients who may be targets of financial exploitation, particularly seniors. THE CANADIAN PRESS/Chad Hipolito

Industry watchdog pushing for safeguards for vulnerable Canadian investors

The protections would particularly help seniors

One of the watchdogs for Canada’s investment industry says it’s working towards creating regulatory safeguards for clients who may be targets of financial exploitation, particularly seniors.

The Investment Industry Regulatory Organization of Canada says a survey done for IIROC found wide public support for having tools and rules in place to protect vulnerable clients.

The idea of having a ”trusted contact” on file, who can be consulted by an investment professional who suspects a client is being exploited or vulnerable, was supported by 93 per cent of 1,000 people surveyed for IIROC.

IIROC is a private-sector body that shares responsibility for regulating about 160 Canadian investment dealers, including subsidiaries of the country’s major banks.

Andrew Kriegler, IIROC’s chief executive officer, says that the next step is to work out the details with other regulatory bodies including the provincial and territorial regulators represented by the Canadian Securities Administrators.

While there’s strong support for putting protections in place, he says “Canadians want us to do it right.”

“And doing it right … means respecting privacy and not compromising that in a rush to do a simple answer.”

The desire for privacy runs deep with many people and investment professionals want to be sure they don’t overstep a line if they interfere with a client’s decision, Kriegler suggests.

“Viewed from one perspective, that’s an intrusive act. It’a surrendering of control,” he says.

“It may be done for exactly the right reasons … but, inherently, that’s a surrendering of control, a surrendering of privacy, a surrendering of mastery over your own life, over your own decisions.”

“And I think that’s inherently a tricky question.”

But Kriegler says there’s also evidence, from one of Canada’s largest groups representing older people, that there is need for some sort of protection for seniors.

He cites an estimate from the Canadian Association for Retired Persons that about one-in-five older Canadians are subject to elder financial abuse and notes that dementia may also reduce the abilities of people as they age.

Immigrants are another potentially vulnerable group, although IIROC hasn’t collected information on that front.

“We didn’t address that question in the survey work,” Kriegler says. “It would be speculation but I think reasonable speculation.”

In fact, he says, all of the issues are likely magnified when a client is uncomfortable or unfamiliar with the system and that’s one reason IIROC wants to tread carefully in conjunction with other Canadian regulatory bodies.

They would include the CSA members and the Mutual Fund Dealers Association, another of the financial industry’s self-regulating organizations.

The survey, conducted by The Strategic Counsel, involved 1,000 people selected from IIROC’s online advisory pool of 10,000 investors.

Besides support for establishing a trusted contact, the Strategic Counsel survey of 1,000 people found 89 per cent of respondents supported giving investment advisers and firms the ability to put a “temporary hold” on account activity.

Support was also high (86 per cent) for providing a regulatory “safe harbour” to protect investment advisers who second-guess a client’s instructions, either by placing a temporary hold or consulting the trusted contact.

“I think investment dealers want regulatory certainty and that’s what’s behind the whole safeharbour idea,” Kriegler says. “This gives them the cover to take the right actions on behalf of the client.”

ALSO READ: Victoria resident barred from trading securities for fraud

ALSO READ: B.C. man raised more than $450K while pretending to be licensed day-trader: BCSC

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Maskwacis now has permanent library

Only one of two in province

Ponoka County dealing with extraordinary rise in outstanding taxes

Nearly $4 million in property taxes, penalties remain unpaid

Justice Minister discusses rural crime in Lacombe

Minister Doug Schweitzer: “Our democracy is founded on public safety”

VIDEO: Trudeau asks Canada to look to current, not past, actions on race

Liberal leader says he never spoke about the racist photo because he was embarrassed

Walmart to quit selling e-cigarettes amid vaping backlash

U.S.’s largest retailer points to ‘growing’ complications in federal, state and local regulations

Trudeau seeks meeting with Singh to apologize for blackface, brownface photos

‘I will be apologizing to him personally as a racialized Canadian,’ Trudeau said Friday

Charges stayed against Alberta RCMP officer in alleged off-duty Whistler assault

Const. Vernon Hagen instead completed an alternative measures program

‘Unacceptable’: What politicians have to say about Trudeau in blackface

Calgary Mayor Naheed Nenshi: ‘When I saw that picture last night, certainly it was a sucker-punch’

Judge finds Alberta couple not guilty in toddler son’s death

It was the second trial for the Stephans, who were found guilty by a jury in 2016

Alberta couple charged in toddler son’s death to learn fate from judge

David and Collet Stephan are charged with failing to provide the necessaries of life

Alberta government pitching that small rural areas pay for policing: NDP

Those 291 districts represent about 20 per cent of the Alberta population

Alberta inquiry into oil and gas foes could face legal challenge from Ecojustice

Alberta Premier Jason Kenney has repeatedly accused U.S. charities of bankrolling efforts

Most Read