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Nov Advocate 2017

THE ADVOCATE 861 VOL. 75 PART 6 NOVEMBER 2017 3. Where Possible, Add a Trusted Contact Person for Each Client File At the moment, there is no emergency contact person information gathered by an investment firm for each client. The report recommends that investment firms start asking a client to nominate a “trusted contact”. This trusted contact can be a touchpoint if the investment firm cannot contact the client, or if there are concerns about abuse or incapacity. While clients should not be forced to nominate someone, it can be helpful to have a back-up person that an investment firm can reach out to if needed. 4. Create a “Safe Harbour” Provision to Protect Firms That Try to Do the Right Thing Firms often do not act because they are concerned that they will be breaching regulatory requirements on privacy or that they may be sued by the clients themselves. This recommendation protects from regulatory censure or lawsuits an investment firm that follows the established protocols, and that acts in good faith, to respond to suspected elder financial abuse, undue influence or mental capacity. 5. Allow Investment Firms to Halt the Draining of Funds from Investment Accounts Where there are real concerns that the investment funds are at risk of being drained, the report recommends that investment firms be given the power to freeze accounts for a reasonable length of time, for both trades and disbursements, while an investigation is undertaken. Without this provision, funds can be lost, and the investment firm has no current power to halt the trading activity. 6. Ensure Investment Firms Become Familiar with Outside Resources and Responders Investment firms need to learn how and when to appropriately refer a case of suspected elder financial abuse, undue influence or diminished mental capacity to local responders. As there is no single place for reporting these issues in Canada, investment firms will need to learn the provincial or territorial responders in each area and make that information widely available to staff. This report marks the first major coordinated approach in the securities sector to dealing with suspected elder abuse, undue influence and mental capacity issues in Canada. This report is accompanied by an executive summary and PowerPoint presentation. Copies are free for download online:


Nov Advocate 2017
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