July 15, 2021 Update
The Canadian Securities Administrators, which includes the Ontario Securities Commission, published final amendments that will enhance the protection of older and vulnerable investors across Canada. The amendments provide financial advisors and firms with tools and guidance to address situations involving financial exploitation or diminished mental capacity, protecting older and vulnerable investors and their assets.
The enhanced investor protections include:
- Trusted Contact Person: All investors will have the ability to add a Trusted Contact Person, also known as a TCP, to their account. The TCP is a resource for financial advisors if there are concerns about financial exploitation or diminished mental capacity.
- Temporary Holds: A financial advisor or firm may place a temporary hold on transactions, withdrawals or transfers if there is a reasonable belief of diminished mental capacity or financial exploitation of their client .
The amendments come into effect on December 31, 2021. Read more
March 5, 2020 Update
The Canadian Securities Administrators (CSA) published for comment proposed amendments designed to clearly outline how registrants can address situations involving diminished mental capacity or the potential financial exploitation of vulnerable clients.
Under the proposed amendments, registrants will be required to take reasonable steps to obtain the name and contact information of a Trusted Contact Person (TCP) from their clients, as well as the client’s written consent to contact the TCP in specified circumstances.
Additionally, the proposed amendments set out the steps that a registered firm must take if they place a temporary hold on a transaction due to a reasonable belief that a vulnerable client is being financially exploited, or that a client lacks mental capacity. The proposed amendments also clarify that Canadian securities legislation does not prevent a registered firm from placing temporary holds in circumstances where the firm has a reasonable belief of these concerns.
The proposed amendments were developed together with the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
The comment period closes on June 3, 2020. Read more
August 19, 2019 Update
It’s been a little over a year since the Ontario Securities Commission (OSC) introduced its Seniors Strategy. We wanted to provide an update on what’s been done and where we are headed.
The OSC’s Seniors Strategy was developed to respond to the needs of older investors and to better equip registered firms and their representatives to address the challenges that may arise as their clients age. Given the realities of Ontario’s aging population, and the increased complexity of the financial lives of older Ontarians, implementation of the Seniors Strategy remains a priority for the OSC.
The OSC’s vision is a stronger and more secure financial future for all Ontario seniors. The OSC Seniors Strategy seeks to achieve this through a comprehensive action plan of targeted policy, operational, research, educational and outreach initiatives.
We look forward to continued dialogue with stakeholders as we move forward with implementing the various initiatives in the Seniors Strategy.
On June 21, 2019, the OSC, together with the Canadian Securities Administrators (CSA) published CSA Staff Notice 31-354 Suggested Practices for Engaging with Older or Vulnerable Clients (the Notice). With an aging client-base, registrants have expressed a desire for guidance on how to address the changing needs and issues they are encountering when working with older clients, particularly, responding to potential financial exploitation and diminished mental capacity. The Notice highlights red flags of diminished mental capacity and financial exploitation, and provides registrants with suggestions for adapting their practices regarding:
- Know your client and suitability obligations;
- Complaint handling;
- Supervisory procedures;
- Powers of attorney and limited trading authorizations;
- Training employees;
- Identifying trusted contact persons;
- Establishing written policies and procedures for reporting and escalating issues; and
- Communicating with older or vulnerable clients.
In addition to the Notice, the OSC is working with the CSA on developing regulations that would provide registrants with additional regulatory tools if they suspect that one of their clients is being financially exploited or is unable to make financial decisions.
The OSC has been working to build capacity to improve the ways in which we work with older investors. We have partnered with Elder Abuse Prevention Ontario to deliver training and education to our staff members who interact with older individuals, such as when receiving inquiries and complaints, or when conducting compliance reviews or enforcement matters.
We also reconstituted the OSC Seniors Expert Advisory Committee, which is a multidisciplinary group of seniors’ experts, to provide staff with specialized input on securities-related policy, operational, education and outreach activities.
On July 27, 2018, the OSC published Encouraging Retirement Planning through Behavioural Insights, a research report that identifies the barriers people experience when planning for retirement. The report suggests 30 different tactics government, regulators, employers and the financial sector can use to help remove those barriers to make planning less stressful and simpler.
The OSC will be pursuing further research, including applied behavioural insights, to better understand and meet the needs and challenges of older investors.
Education and Outreach
Financial education and investor outreach form a significant part of our Seniors Strategy. In fiscal 2018-19, we delivered 42 OSC in the Community events targeted at seniors across the province.
In the coming months we will be publishing additional tools and resources for older investors, their families and caregivers who support them, as well as their registered firms and representatives.
A number of new dedicated resources have been added to GetSmarterAboutMoney.ca, including the Retirement Cashflow Calculator, which was created to help individuals plan their cash flow in retirement and the RRIF Withdrawal Calculator, which was created to help calculate RRIF withdrawals. In addition, we have added a Resource for Seniors hub on GetSmarterAboutMoney.ca, which provides links to a number of resources for older Ontarians and their families and caregivers in a central online location.
We also recently published a Personal Information Inventory document, which is a fillable form that can be used to collect and store relevant information for a trusted person, including details of relevant legal documents, insurance information, professional advisors, medical professionals, assets, debts, utilities and services, and digital accounts.
For the full picture of how the OSC is addressing the needs of older investors, visit the OSC website to read the complete OSC Seniors Strategy and all of the initiatives we will be pursuing.