Publication of Joint CSA/SRO notice 31-351 – Complying with requirements regarding the Ombudsman for Banking Services and Investment (OBSI)

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Subject: Publication of Joint CSA/SRO notice 31-351 – Complying with requirements regarding the Ombudsman for Banking Services and Investment (OBSI)

On December 7, 2017 the Canadian Securities Administrators (CSA), Investment Industry Regulatory Organization of Canada (IIROC) and Mutual Fund Dealers Association of Canada (MFDA) released a joint notice CSA Staff Notice 31-351, IIROC Notice 17-0229, MFDA Bulletin #0736-M Complying with requirements regarding the Ombudsman for Banking Services and Investments (OBSI).

The notice highlights concerns about some registered firms’ complaint handling systems and participation in OBSI’s services, and sets out potential regulatory responses. The notice also highlights CSA and SRO staff concerns regarding the use of an internal “ombudsman” as part of complaint handling systems.

“We expect firms to participate in OBSI’s dispute resolution process in a manner consistent with their obligation to deal fairly, honestly and in good faith with their clients and to respond to each customer complaint in a manner that a reasonable investor would consider fair and effective,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.

Any questions regarding the notice can be addressed to:

Carlin Fung
Senior Accountant
Compliance and Registrant Regulation
(416) 593-8226
[email protected]