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Wealth Professional | 08 Jun 2016, 08:15 AM Agree 0
An independent report of OBSI finds the banking ombudsman unable to enforce own compensation recommendations
  • Alan Blanes | 08 Jun 2016, 01:04 PM Agree 0
    I am glad that OBSI has done an analysis of the 2016 public consultation input. I have a great deal of admiration for their releasing the submissions the day after submissions closed in February, 2016. I come to a diametrically different conclusion, however.

    Instead of seeing "exception progress" [since the 2013 review] I see a pattern of lawlessness and contempt for rule of law. Since the last review, in my dad's experience, evidence has been released that Canaccord Capital was convicted of failing to supervise its Kelowna and Montreal offices. My dad had submitted a fully documented complaint about the two breach of contract experience he had with this firm back in 2007 - and the regulatory system had precisely zero interest in seeing rule of law adhered to. My dad has had his retirement derailed because of having to battle the bad faith and the limitations of SRO regulators and the inadequacy of mechanisms available in the courts. Provincial Court can not provide awards for court costs - which in my dad's experience in his gaining two convictions for breach of contract against Canaccord came to over $51,000. My dad and I are adamant that the fact that Canaccord was convicted of failing to supervise their Kelowna office should make restitution for its forcing people to have to get a genuine hearing from the justice system - the negligent company should pay for the expenses to the client for this kind of added costs to the client.

    Ombuds services are not appropriate in the case of clients having to battle companies that use predatory and deceptive business practices that violate common law and criminal code prohibitions. The fact that Supreme Court of BC case law - as we found in a subsequent case with a different company - provides award to the successful plaintiff of $3000-$7500 for hijacking a client's savings for a 7 year lock-in to a volatile seg fund when the company was peddling counterfeit contracts for selling GICs. The awards for court costs in BC amount to 40-60% of the clients' court and lawyer bills. This brutal fact demonstrates that use of courts is structurally uneconomic to the aggrieved client.

    It is high time that OBSI join a national campaign to get every Canadian aware of the history of Canada's commitment to the principle of economic self determination - and to understand that deceptive dealing interferes with the right of vulnerable seniors to have their economic security and rights honoured. Canada needs a mass education drive to create awareness of the Covenant on Economic Social and Cultural Rights - which parliament ratified in 1976.
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