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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Young performers offer a glimpse of what to expect for upcoming 100 Mile Festival of the Arts

Young performers showcased their talent through song, music and speech inside the… Continue reading

Electric charging stations in 100 Mile now open to the public

‘People have called from as far away as Kamloops’

B.C. Indigenous communities receive funding for hands-on trades training

Nuxalk, Witset, Penticton Indian Band, TRU Williams Lake, and Camosun College among beneficiaries

Age-Friendly presentation aiming to make pain-management a little easier

‘Having more tools to be able to cope with that pain is very helpful for people of all ages’

VIDEO: Rare ‘ice circle’ spotted on Kamloops river

An ice circle or ice pan, has formed in the chilly waters just east of the Yellowhead Bridge

Uber, Lyft approved for ride-hailing in Lower Mainland

Kater Technologies Inc.’s application was rejected

B.C. man rescued after getting trapped headfirst in well as water level rose

The rescue involved crews from Oak Bay and Saanich

Investigators in wildfire-torn Australia head to site of B.C. airtanker crash

The B.C. government sends condolences to Port Alberni-owned Coulson Aviation

RCMP investigating sexual allegation against Lower Mainland police officer

Delta officer suspended while the alleged off-duty incident involving a co-worker is investigated

Former Mountie, sports coach convicted of sex abuse in B.C. granted day parole

Alan Davidson was sentenced to almost six years for abusing seven boys in the late 1970s and early 1990s

VIDEO: Person in wheelchair narrowly avoids collision with car in Kelowna

There were no injuries in the scary looking near-accident last week in Rutland

Here’s what Canada is doing to stop the coronavirus from getting in

Health officials are monitoring multiple possible cases in Canada

Interior Health issues drug alert in Kamloops

Testing of two samples of drugs sold as crystal meth was positive for fentanyl

Most Read