On September 17, 2015, the OSC, IIROC and MFDA released the results of their joint “Mystery Shopping for Investment Advice” initiative. This exercise, conducted in 2014, involved sending individuals to meet with Ontario-based advisors, including investment dealers, mutual fund dealers, exempt market dealers and portfolio managers.
While the individuals purported to have a lump sum to invest, no real funds were actually provided for investment, which meant that the investigation could deal only with the initial stage of engagement between investor and advisor.
The aim of the study was to conduct 37 or 38 meetings with each of the four advisor categories, for a total of 150. However, the number of meetings actually conducted (105) fell somewhat short of this, largely because of the difficulties in arranging meetings with exempt market dealers (EMDs) and portfolio managers (PMs).
Canadian Securities Law – STIKEMAN ELLIOT – SEPTEMBER 21, 2015
Want More Investigative Content?
