Trusted Contact Person (TCP) – Did you assign one? Were you asked?

Do you have a trusted contact person (TCP)? At the end of last year new amendments to securities laws require advisers to ask their clients to name a TCP that the adviser can contact under certain circumstances. Advisers are required to ask for this information and get written consent to use it, but it is up to the investor to determine if they want to provide it. Providing a TCP is recommended by securities regulators.

If you provide your adviser with a TCP they can only contact them under the following circumstances:

  • They are unable to contact reach their client.

  • There are signs that the client may be a victim of financial exploitation.

  • It appears the client lacks the mental capacity to make financial decisions.

An adviser can contact a TCP for guidance under any of these circumstances. However, a TCP does not gain control of your finances. They cannot make trades using your account and cannot make financial decisions about your account. Acting as a TCP does not give this person a power of attorney, or the powers of a legal guardian, trustee or executor.

When choosing a TCP, securities regulators recommend that investors choose someone that:

  • knows them well and can reliably act in their best interest;

  • does not have a vested financial interest in their affairs; and

  • does not hold a power of attorney over the client’s financial affairs.

Before naming your TCP, it is recommended that you contact this person, obtain their permission, and inform them of the responsibilities that come with this role.

For more information on the collection of TCP information please see the amendments to National Instrument 31-103, Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103).