52 | winter 2017 cmba-achc.ca CMB MAGAZINE
ombudsman
An alternative to the courts or complaining
to a regulator, OBSI's process is confidential
and non-legalistic; it is funded by over 1,300
participating firms, including almost all banks
and all securities registrants (even MICs) in
Canada. As chief Complaints Officer at their
brokerage, the CMBA encourages Principal
Brokers to join. "Many of our members see
us as an extension of their client services,"
explains Bradley. "We are there to help resolve
issues. However, if there is systemic risk
identified relating to a securities firm or a bank
or to those sectors, we are required to flag a
firm to the regulators."
Would it surprise you to know that most
OBSI cases are resolved in favour of the firm?
"But when the consumer is right, and there's
been a mistake or a poorly prepared advisor,
we investigate," says Bradley. "We focus on
the issues, gather case information, review
it and make a recommendation. If we think
compensation is warranted, then we can
facilitate a settlement."
OBSI's decisions are not binding on either
the firm or the consumer, but in almost all
cases where a recommendation is made, OBSI
is able to help the firm and consumer reach
a voluntary settlement. If a consumer doesn't
like the findings, they are still able to go to
a lawyer or seek other ways of resolving the
dispute.
However, OBSI is not a regulator, and
therefore cannot punish or fine firms. Only
the regulators or government agencies have
the authority to suspend, fine or bar firms
or licensed individuals under the legislation
governing the industry.
Wright points out one difference that is
key for consumers and brokers: "FSCO can't
get money back for consumers following a
complaint. We can."
According to Bradley, the highest
settlement paid to a consumer was $425,000.
"Average investment settlements are around
$26,000, and banking ones are around $5,000."
If a complaint becomes a case at OBSI,
a decision is generally reached within 120
days for cases pertaining to banking services
and within 180 days for investment matters.
Complex cases can take longer to resolve and
many cases can be resolved more quickly.
Just who is the Ombudsman? e
Ombudsman is appointed by a board of
directors, and must be independent of both
industry and government. Sarah Bradley took
on the role in 2015 and can hold it for up to
five years. You can learn more at OBSI.ca; the
website has a list of participating firms, as well
as case studies and a resource room for firms
and consumers with regard to how to deal
with a complaint.
Using OBSI is far easier and cheaper than
getting lawyers or the FSCO involved in a
complaint that just won't go away.
"We focus on the issues, gather case
information, review it and make a recommen-
dation. If we think compensation is warranted,
then we can facilitate a settlement."
–Sarah Bradley
Sarah Bradley, OBSI's Ombudsman
and CEO.
