Top independent firm refuses to pay back investors

Top independent firm refuses to pay back investors

Top independent firm refuses to pay back investors

Independent firm Richardson GMP has disregarded recommendations from the Ombudsman for Banking Services and Investments by refusing to compensate investors in two separate cases.

The OBSI recommended that RGMP compensate $232,500 and $66,366 to investors, who were members of the same family.

The agency says the complainants - who were approaching retirement - invested “significant assets” with Richardson GMP, which placed components of their portfolios in
investments that were unsuitable given their investment objectives and risk tolerance.

“Richardson GMP is responsible for the financial harm incurred by the complainants as a result of the unsuitable investments recommended by the advisor,” the OBSI said in a statement.

RGMP is not the first dealer to refuse to comply with the OBSI's findings. In 2013, about 30 per cent of compensations recommended by the independent resolution agency were disregarded by 10 investment dealers, the Financial Post reported. Despite this, the Ombudsman claimed Wednesday that “over 99 per cent of the thousands of complaints brought to our office have been successfully resolved.”

The agency's terms of reference state that it must publicize any refusal of recommendations and the details of the complaint.

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