Industry

Delivered by e-mail

July 17, 2014


Requirement to make OBSI available to clients

This is to remind you that after August 1, 2014, all registered dealers and all registered advisers outside of Québec will be required to make the services of the Ombudsman for Banking Services and Investments (OBSI) available to their clients in respect of eligible complaints.

August 1st is the last day of the transition period for the new requirement, which designates OBSI as the common service provider for these purposes. The new requirement is set out in amendments to section 13.16 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103). There is an exemption available for permitted clients who are not individuals (“permitted client” is a defined term in NI 31-103).

Guidance is provided in the Companion Policy to NI 31-103 and in CSA Staff Notice 31-338 Guidance on Dispute Resolution Services - Client Disclosure for Registered Dealers and Advisers that are not members of a Self-Regulatory Organization. The Staff Notice includes as sample client disclosure document. You can access these documents by clicking the links below.

In order to be able to meet the new requirement, registered dealer or adviser firms operating outside of Québec should join OBSI as “Participating Firms” by August 2, 2014, unless all of their clients are permitted clients who are not individuals.

For more information about becoming an OBSI Participating Firm, please click https://www.obsi.ca/en/resource-room/resources-for-firms to access the Membership Kit OBSI has developed for new participating firms or contact Mr. Tyler Fleming, Director, Stakeholder Relations and
Communications at 416-218-4244 or by email at Tfleming@obsi.ca.

Although the new requirement does not apply to firms that are solely registered in the category of Commodity Trading Manager, we encourage you to consider becoming an OBSI Participating Firm as a best practice.

Click here to see the full text of the amendments, including the Companion Policy guidance: http://www.osc.gov.on.ca/en/SecuritiesLaw_ni_20131219_31-103_amendments.htm

Click here for CSA Staff Notice 31-338 Guidance on Dispute Resolution Services - Client Disclosure for Registered Dealers and Advisers that are not members of a Self-Regulatory Organization