OSC outlines initiatives to help Ontario’s senior investors

The OSC has published OSC Staff Notice 11-779 Seniors Strategy, which outlines new initiatives to respond to the needs of older investors and better equip registered firms and representatives to address issues that may arise as their clients age.

“Our comprehensive approach includes targeted policy, operational, research and educational initiatives to ensure that older Ontarians’ needs are appropriately met by the province’s securities industry,” says Tyler Fleming, director of the Investor Office at the OSC, in a release.

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Over the coming year, the OSC will work to implement new initiatives, including the development of a flexible and responsive framework to address issues of financial exploitation and cognitive impairment among older investors that includes a safe harbour for firms and their representatives.

The OSC also plans to introduce guidance and educational initiatives for registered firms and representatives who work with older investors, covering topics such as best practices for engaging and communicating with older investors. Additionally, the OSC intends to establish dedicated staff in its Inquiries and Contact Centre to respond to questions and concerns from older investors.

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These initiatives and others outlined in the strategy follow extensive research, consultation with the OSC’s Seniors Expert Advisory Committee, findings from a roundtable focused on seniors’ issues, as well as engagement with international regulators, the investment industry, retail investors and community groups.

The OSC will provide an update on its progress on the initiatives outlined in today’s publication in one year.

Industry reacts to the strategy

The Portfolio Management Association of Canada (PMAC), MFDA and IFIC all welcome the OSC’s initiatives.

“We view the Seniors Strategy as a crucial roadmap and conversation starter on pressing issues around aging investors,” says Katie Walmsley, president of PMAC, in a release.

IFIC is pleased to see the OSC’s plans to develop a framework that includes the naming of a ‘trusted contact person’ and a ‘safe harbour’ provision, the association notes in a release. The introduction of these changes will better enable advisors to take steps to protect clients when they have concerns about signs of exploitation or diminished judgement.

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Meanwhile, the MFDA will also be issuing guidance for dealers and advisors on best practices for better protecting and serving senior clients. And to mark seniors month in June, the MFDA will issue its next investor bulletin with a focus on seniors’ issues and investor protection.

“The MFDA has and will maintain a focus on senior investors given that 3.6 million households serviced by MFDA Members are approaching or are in retirement,” says the association in a release.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.