Submitted by nsscadmin on
Has your investment adviser asked you to appoint a trusted contact person (TCP) on your account? Canadian securities regulators added the TCP as an enhancement to protect older and vulnerable investors. Adding a TCP is available to all investors no matter their age. Advisers are required to ask their clients to name a TCP, but it is up to the client if they wish to provide one or not.
Under the TCP amendments to securities laws, an adviser may contact a TCP under certain circumstances. They include:
- The adviser is unable to 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 in these situations to help protect their client. However, a TCP does not gain control of your finances. They cannot make or authorize trades or transactions or make any financial decisions about your account. A person acting as a TCP does not gain power of attorney, or any powers held by a legal guardian, trustee, or executor.
When determining who your TCP should be, securities regulators recommend choosing someone that:
- knows you well and can reliably act in your best interest;
- does not have a vested financial interest in your affairs; and
- does not hold power of attorney over your financial affairs.
Before you name a TCP it is recommended that you contact this person, inform them of the responsibilities of the role, and get their permission.
Full information on rules around TCPs can be found in amendments to National Instrument 31-103, Registration Requirements, Exemptions and ongoing Registrant Obligations (NI 31-103)