The Ombudsman for Banking Services and Investments (OBSI) has released the results of its 2021 independent evaluation of its operations and practices for investment-related complaints.
The evaluation, conducted every five years, was undertaken by Professor Poonam Puri, expert in corporate governance, corporate law and securities law. Puri delivered her findings to the OBSI board of directors and joint regulators committee on June 13. The joint committee includes representatives from the Canadian Securities Administrators (CSA), the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
The report concluded that OBSI met and exceeded its obligations under its agreement with the CSA. It also found that OBSI dealt with complaints in a timely manner, investigators were able to identify key issues, they were skilled at conducting interviews and assessing credibility and were able to explain their views well, and as early as possible, keeping all parties apprised of progress in their investigations.
The report also states that case conclusions flowed from evidence and decisions were fair and proportionate.
Among the 22 recommendations, the report also suggests 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,” they write, adding this provides and economic incentive for both parties to settle at amounts below OBSI’s recommendations. “The reviewers observed that binding authority is more consistent with international best practices and would bring more legitimacy to the system.”
The OBSI joint regulatory committee says it has received a copy of the work, and thanked Puri for the evaluation. It says it will continue to meet with OBSI staff, will begin work analyzing the findings, and plans to meet with the OBSI board of directors in September to learn more about the ombudsman’s position on the report findings and recommendations.
