Geller Law
Generally, a complainant may try to do one or more of these three objectives:
· Avoid further misconduct.
· Punish the wrongdoer.
· Seek compensation for the financial loss.
Stopping Misconduct
The goal of avoiding further misconduct by the advisor and the dealer is an altruistic goal. This does not help those who have already suffered harm.
There are two levels of complaints.
The first is the dealer or insurer who the advisor works for. The monetary incentive is for the dealer or insurer to dismiss the complaint. The incentive is that the advisor generates revenue for the dealer or insurer. The complaint could stop that revenue source. Furthermore, the harm done may result in you asking for compensation. The dealer or insurer would be liable for the losses caused by their representative.
The second type of complaint is to a regulator. Regulators take a narrow approach to investigating complaints. A complaint should reference the regulations breached. The complaint should append the written evidence of the breached regulations.
Punishing the wrongdoer
The goal of punishing the wrongdoer does not lead to you getting your money back. While punishment may be appropriate, how will this help you? If you seek punishment, you also seek compensation. Seeking compensation can stop the misconduct and can punish the wrongdoer.
You will face legal teams with seemingly unlimited budgets. A common defence strategy is delaying, denying and confusing your efforts. Don't fall into this trap.
Be sure to take detailed notes of all dealings. Be sure to gather all available documents. You will have some of these records. You can also gather many important documents through a privacy (PIPEDA) request).
Consider lawyering up to level the playing field.
Seeking CompensationThere are a few viable options for seeking compensation.
- Complaint to the dealer
- Complaint to the Ombudsoffice
- Lawsuit
1. Complaints to dealers
Complaints to dealers and insurers are the choices that the dealers and insurers want. This gives them an opportunity to delay and to deny. This gives them an opportunity to probe your claim. They gather the information that weakens your claim. Rarely, very rarely, is the result fair, full or a way to get your money back.
2. Complaints to the Ombudsoffice are not viable for insurance.
Complaints to the Ombudsman of Banking and Investment Services (OBSI are an option for losses under 100k. You can try OBSI for bigger losses, OBSI almost never recommends that industry pay over 100k. OBSI will only investigate what you tell them to. If you don’t know the ins and outs of the regulatory world, the history of lawsuits, etc. then you won’t know what to tell OBSI. OBSI does not have binding authority. If the dealer doesn't agree, you are out of luck. Now you have wasted your time and efforts. This is one of the ways that industry reduces the claims that they pay.
2. Lawsuit
A lawsuit is a complex matter. It is often the best, or only, option to get your money back. This too can be a long and frustrating process. Best to lawyer up with lawyers that have devoted their careers to these cases. Best to lawyer up with lawyers who are experts in these cases. While success is not guaranteed, this is often the only viable route to get your money back.
Conclusion
This is a tortious process where the dealer and insurers have power because they have money. Don't be put off. Be prepared.
Caution
Remember, a common defence strategy is to string out the process so that you miss out on your right to sue. In general in Canada, you have two years from when you first knew of a wrong, a loss, and a right to seek compensation. If you don't sue within 2 years, you may be out of time. Talk to a lawyer about your rights. Don't delay or allow the advisor, dealer, or insurer to delay you - you might lose out.
