Earlier this year, the Canadian Securities Administrators proposed amendments that will require registrants to take reasonable steps to obtain the name and contact information of a TCP from their clients, as well as the client’s written consent to contact the TCP in specified circumstances, such as when concerns arise about financial exploitation or mental capacity. We previously reported on this topic in our March bulletin.

On November 9, the Ontario Securities Commission (OSC) published OSC Staff Notice 11-790, Protecting Aging Investors through Behavioural Insights. The research report identifies techniques dealers and advisors can use to increase the likelihood that older clients will provide TCP information designed to protect older investors. Interestingly, the report found that a form designed using behavioural techniques resulted in a 23% increase in the likelihood that an investor would appoint a TCP.

The OSC encourages registrants to review the report and consider integrating the tactics suggested in the report into their current practices. If you would like to discuss the report or would like assistance in preparing TCP forms, please contact us.

December 11, 2020