OSC to mystery shop, target advisor titles

Ontario regulators introduced an investor outreach program called OSC in the Community in early 2013.

The OSC says the program takes its mandate “from Bay Street to Main Street” since staff have been conducting fraud seminars across the province, as well as interacting with investors via social media and email.

Last week, the regulator’s Office of the Investor published a notice that outlines the feedback it’s received. It finds Canadians are worried about investment fraud, and says they’re also concerned about advisors’ fees and fiduciary standards.

To show it’s addressing these concerns, the regulator mentions the 2012 CSA paper on the standard of conduct for advisors. It also tells investors it plans to “conduct a mystery shop research sweep…to gauge the suitability of advice being provided to investors.”

Read: OSC faces backlash on fiduciary standard

Further, “as part of [its] analysis of the best interest standard, [the OSC] will consider the impact adviser titles and proficiency standards have on investor protection.”

Dealers and advisors should speak to clients about this release, as well as prepare for next steps by the OSC. Make sure your book understands your titles and services, and consider revisiting your risk analysis processes.

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OSC launches registrant outreach program