FAIR Canada and PIAC Welcome Steps to Ensure Compliance with OBSI Requirements

FAIR Canada and PIAC welcome the CSA, IIROC and MFDA taking a step in the right direction to improve compliance with the OBSI dispute resolution process for securities complaints.
We are pleased to see that the CSA, IIROC and MFDA will:

  • Make registered firms comply with their regulatory obligation to notify clients of their right to utilize OBSI’s services upon the earlier of being provided with the firm’s substantive response or after 90 days.
  • Not permit registered firms to mislead clients into thinking that they must exercise the option of using an internal “ombudsman” before they can access OBSI’s services.
  • Require registered firms to disclose clearly to clients that any internal “ombudsman” is  employed by the firm and, unlike OBSI, is not an independent dispute resolution provider.
  • Require registered firms to disclose clearly to clients that they may submit a complaint to OBSI without using an internal “ombudsman” – if either no substantive response is received from the registered firm within 90 days or the client is not satisfied with the response received within 90 days.
  • Require registered firms to disclose clearly to clients that OBSI is a free service.
  • Require registered firms to disclose clearly to clients that the use of an internal “ombudsman” is voluntary, that statutory limitation periods continue to run while using that process which may impact a client’s ability to commence a civil action (and therefore harm their legal rights).

We are also pleased to see that the CSA, IIROC and MFDA may view refusals or low ball offers as an indication of problems with a registered firm’s complaint handling practices including their obligation to deal fairly, honestly and in good faith with clients, act within the applicable standard of care, or have implemented and maintained effective complaint handling procedures.
Going forward, we urge the CSA, IIROC and the MFDA to:

  • Take immediate action against registered firms that have repeatedly ignored their complaint handling obligations and refused to comply with OBSI’s recommendations, from the beginning of the OBSI complaint process. The CSA, MFDA and IIROC should also not simply make refusals and low-ball offers one aspect of what they will consider during their normal risk-based reviews on a going forward basis but review refusals and low ball offers in as close to real time as possible and practicable.
  • Require registered firms to cease using the term “ombudsman” as part of their internal complaint handling process.
  • Require registered firms to provide a prominent link to OBSI’s complaint handling process on their websites.

Implement binding decision-making for OBSI to prevent low-ball offers and refusals from being a systemic issue so that Canada’s dispute resolution process complies with our international obligations to be “accessible, affordable, independent, fair, accountable, timely and efficient”. Canadians deserve to have a resolution of their complaints when they utilize OBSI’s services.
For more information:
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ext. 25
jlawford@piac.ca

PIAC Challenges CRTC Advice Regarding Device Unlocking

PIAC has received complaints from the public that service providers are refusing to unlock devices locked to their network for persons who are not current customers of the service provider. PIAC was surprised to find that the Commission staff apparently have been supporting this position through social media, notably through Twitter and Reddit.

To address this issue, PIAC has filed the below application with the CRTC.

PIAC – Part 1 App – Device unlocking and notification of interpretations

This application requests that the CRTC clarify that wireless service providers (WSPs) must unlock all devices locked to their network, not just those associated with ongoing monthly service plans. Should the Commission deem it necessary or appropriate, this application requests that the Commission order WSPs to unlock all devices locked to their network and to make a consequential amendment to the Wireless Code. This application also requests that the Commission direct its staff, and request that the Commission for Complaints for Telecom-television Services (CCTS) request its staff, to formally document and notify the public, regulated parties and regular interveners before the CRTC when they provide interpretation or public advice regarding consumer protections under the Wireless Code.