Submitted by nsscadmin on
The Ombudsman for Banking Services and Investments (OBSI) has been in the news lately, leading to a reader wanting to know more about the organization.
Founded in 1996 and then known as the Canadian Banking Ombudsman before a name change in 2002, OBSI “resolves disputes between participating banking services and investment firms and their customers.” They are an independent body that works informally and confidentially to find fair outcomes when disputes arise.
However, OBSI is not a regulator. When ruling on a dispute, OBSI can come down in favor of the customer or the bank or firm if the evidence points that way. If they do decide a bank or firm has acted unfairly, made an error, or provided bad advice that has resulted in a loss of money they can recommend that the bank or firm compensate you. The key word here is “recommend.” OBSI does not have the power to enforce judgements on anyone. They do have an excellent record of banks and firms abiding by the decisions and they do publicly recognize when a recommendation is refused.
The maximum recommendation OBSI can ask for is $350,000.
Under amendments to National Instrument 31-103 by the CSA in 2013, all registered dealers and advisers in Canada, outside of Quebec, are required to take reasonable steps to ensure that OBSI is used for dispute-resolution services.
More information on OBSI can be found on their website at www.obsi.ca