RELATIONSHIP DISCLOSURE INFORMATION
ENGLISH LANGUAGE
The parties to this disclosure document consent to it being in English. Les parties aux prèsentes s`accordent qu`elles soient rèdigèes en anglais.
GENERAL
The Ontario Securities Commission requires that we provide all of our clients with this Relationship Disclosure Information (“RDI”) which is designed to help clients of RealShare Inc. (“RealShare” or the “Firm”) clearly understand the nature of the services that are provided by RealShare, and the necessary elements of satisfactory ongoing relationship. RealShare will take reasonable steps to advise you of any significant changes to the information in the RDI in a timely manner.
REGISTRATION
RealShare is registered as an Exempt Market Dealer (“EMD”) for tokenized securities offerings in Ontario, Alberta, British Columbia and Manitoba. RealShare sells exempt market securities of issuers (each an “Issuer") over the internet through the RealShare Platform (the “Platform”).
OUR BUSINESS (PRODUCTS AND SERVICES)
RealShare presents a unique approach to real estate investment through its secure and convenient online Platform along with its commitment to a high standard of client care.
RealShare sells tokenized securities of related, unrelated or connected Issuers who are investors in the commercial real estate market to individuals and corporations (i.e., accredited investors and/or eligible investors) that can rely on an exemption provided under National Instrument 45-106 – Prospectus Exemptions, or other available exemptions, if applicable. As an EMD, RealShare engages in the business of trading securities that are distributed under this exemption from prospectus requirements, under applicable securities law, whether or not a prospectus was filed in respect of the distribution of the securities.
RealShare may sell the securities of Related Issuers and/or Connected Issuers (as defined below) - the securities that RealShare sells are not offered by prospectus.
Members of the RealShare team may contact you to assist with requests like account opening, transfers and other account maintenance/Platform-related issues.
Related Issuers and Connected Issuers of RealShare
RealShare is obligated to inform its clients of the relationship or connection between RealShare and the Issuer of the securities it offers. RealShare may, from time to time, offer securities of Related Issuers and Connected Issuers which can be viewed as proprietary products. The securities regulatory authorities have stated that if a registrant is trading in, or recommending proprietary products, it is an inherent conflict of interest that is almost always a material conflict. Under all circumstances, RealShare will deal fairly, honestly, in good faith with and in the best interests of its clients.
A person or company is a “Related Issuer” to RealShare if, through the ownership of or direction or control over voting securities or otherwise, the person or company is an influential security holder of RealShare, RealShare is an influential security holder of the person or company, or if each of them is a Related Issuer of the same third person or company.
A person or company is a “connected issuer” to another person or company if, due to its relationships with such person, a prospective purchaser of securities of the person or company might question the other person or company’s independence from the first person or company.
Further details regarding Issuers related to RealShare are detailed below and are also available in each Issuer’s respective offering documentation and/or within the Issuer’s profile on the Platform.
Related Issuer or Connected Issuer
Freed Income Fund (the Fund) and Freed Income Fund II (the Trust) is a related and connected issuer to RealShare. RealShare, Freed Income FND GP Inc. (the General Partner of the Fund) and the Trust, are ultimately controlled by the same individual and Mr. Peter Freed acts as a Director of RealShare, the Fund and the Trust.
A “related registrant” is a registered adviser or dealer under securities legislation that has a principal shareholder, director or officer that is a principal shareholder, director or officer of RealShare. As of today’s date, RealShare has no related registrants.
KNOW YOUR CLIENT OBLIGATIONS (“KYC”) AND INVESTOR SUITABILITY
RealShare is obligated to ensure the proposed investment is suitable for you. To assess the suitability of proposed investments, RealShare will obtain information relating to your investment objectives, risk tolerance, investment knowledge and financial situation.
The cornerstone of our relationship with you is the Know Your Client Form (KYC Form).
We are required to obtain the following information before we open an account for you, in order to:
1) Establish your identity
2) Establish whether you are an insider of a publicly traded company
3) Ensure that we have adequate information regarding your personal circumstances to satisfy the required suitability determinations which includes assessing your financial circumstances, investment needs and objectives, investment knowledge, risk profile and investment time horizon.
For non-individual clients, we are required to verify the legal name of the entity, the type of legal entity, formation details, information about the beneficial owners of 25% or more of the shares or units of the legal entity etc.
On an annual basis, or on an ad hoc basis, as required, we will update your KYC information to ensure that it has current information to make suitable investment decisions for you which act in your best interest.
It is important for us to have current KYC information to ensure that we can accurately assess suitability for you. Therefore, if there are any significant changes to your circumstances, please inform us so that we may update your KYC documentation accordingly. A significant change is a change that affects your personal or financial situation, your investment needs and objectives, your risk profile or your investment time horizon, as well as any change that can reasonably be expected to have a significant impact on your net worth or on your income since the last update of your file.
We are not responsible for any losses you may incur as the result of your failure to do so.
Trusted Contact Persons and Temporary Holds
By providing Trusted Contact Person information to RealShare, you consent and authorize RealShare to contact the Trusted Contract Person and disclose information about your account if RealShare, in its discretion, has questions and/or concerns regarding your whereabouts or health status or in the event that it cannot contact you or becomes concerned that you may be a victim of fraud or exploitation, including financial exploitation.
By providing Trusted Contact Person information to RealShare, you consent to RealShare contacting the Trusted Contact Person to among other things, confirm or make inquiries about any of the following: (i) possible financial exploitation, (ii) concerns about your mental capacity as it relates to financial decision making or lack of decision making, (iii) the name and contact information of any of the following: legal guardian, executor of an estate under which you are a beneficiary, a trustee of a trust under which you are a beneficiary, any other personal or legal representative; and (iv) your current contact information.
RealShare will not take any instructions regarding your investment from the Trusted Contact Person unless they are validly appointed as a power of attorney. The role of the Trusted Contact Person will only be to provide RealShare with information. If the Trusted Contact Person is the person causing RealShare to have concern, RealShare will not contact that person.
Under securities laws that apply to us, we are permitted to place a temporary hold on all or a portion of your investment with us in certain circumstances as described below. In these circumstances, we may place a temporary hold regardless of whether or not you have designated a Trusted Contact Person. The decision to place a temporary hold will be made by our Chief Compliance Officer (CCO).
A temporary hold on the basis of financial exploitation may be appropriate in instances where the CCO reasonably believes a client has become a vulnerable client and financial exploitation in respect of its account(s) has occurred, is occurring, has been attempted or may be attempted. A “vulnerable client” is a client who might have an illness, impairment, disability or aging-process limitation that places the client at risk of financial exploitation.
A temporary hold on the basis of a lack of mental capacity may be appropriate in instances where the CCO reasonably believes that a client no longer has the mental capacity to make decisions involving financial matters.
There may be other circumstances under which a temporary hold can be placed on an account.
If a temporary hold is placed on your investment, we will promptly provide you with written notice of the temporary hold and the reasons for such hold being placed on some or all of the assets of your account(s) with us. We will then notify you when the temporary hold has been terminated. Within 30 days of placing a temporary hold, and unless the hold has been previously terminated, within every subsequent 30-day period, we will be required to terminate the temporary hold or to provide you with notice of our decision to not terminate the hold and the reasons for that decision.
STANDARD OF CARE
RealShare will discharge its duties with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character with like objectives, and shall at all times act on a basis which is fair and reasonable and shall exercise its power and duties in good faith and in accordance with its best judgment.
RealShare may delegate or outsource certain functions to other service providers but it is responsible for these functions and must supervise the service providers.
CLIENT’S ACCOUNT WITH REALSHARE
A client’s account with RealShare is governed by the terms of the applicable offering documents relating to a specific RealShare investment product in which the client wishes to invest.
Client funds belonging to the client that are held by RealShare are deposited into a trust account the RBC. Funds from registered accounts for the purpose of purchasing deferred plan eligible exempt market products will be held by a trust company that provides custodial services, such as Computershare Canada Inc. or Olympia Trust Company.
ACCOUNT FEES AND OPERATING EXPENSES
The fees applicable to any RealShare investment product are as set out in the offering documents related to that product. The offering documentation also describes the costs that may be charged to you, the client, as operating expenses (audit fees, legal fees, etc.). RealShare, acting in its capacity as an exempt market dealer, currently does not charge clients any fees for the operation of their account on the Platform. You will be notified of any changes in fees charged to you the Investor at least 60 days before the date on which a change of fee becomes effective.
Referral Arrangements
RealShare may enter into referral arrangements with affiliated or non-affiliated registrants and non-registrants, some of which are related registrants to RealShare, so that we may provide services and products to referred clients. We may pay a referral fee to the referrer. A referral fee is any monetary or non-monetary benefits provided for the referral. We negotiate the referral fee with the referrer. Any fees and expenses paid by referred clients remains the same regardless of any referral fee paid by RealShare to the referrer. We will inform all referred clients under a referral arrangement.
RealShare may also receive a referral fee for referring its clients to other service providers.
RISKS
General Risks
It is important to be aware of the potential for risk inherent in investing in the capital markets. Generally, investments are not guaranteed. Factors that may affect the value of your investments include general economic factors; market and business conditions; fluctuations in securities prices, interest rates, and foreign currency exchange rates; changes in government regulations; and catastrophic events.
On a personal level, investment decisions should be based on what is suitable for your circumstances. RealShare recommends an investment to you by examining your financial circumstances, risk tolerance and your investment needs and objectives. We are required to determine that holding exempt market securities through the RealShare Platform is appropriate for you and as such we must put your interests first.
Clients may or may not borrow to invest in a financial transaction. There are certain risks involved in using borrowed money to finance the purchase of a security. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
Generally, one should only borrow to invest if:
You are comfortable with taking risk.
You are comfortable taking on debt to buy investments that may fluctuate in value.
You are investing for the long-term.
You have a stable income.
As an EMD, there are risks associated with exempt market securities some of which are listed herein below:
Exempt market securities may not be listed on any stock exchange that could restrict your ability to resell them. There could be a lockup period that applies to the security that restricts you from trading, selling or transferring the security.
Exempt market securities are generally not covered by deposit or investor protection insurance;
Securities Regulators do not review offering memoranda for completeness;
Non-Reporting Issuers are not subject to the same ongoing disclosure obligations as reporting issuers. Issuers of exempt market securities (i.e., Non-Reporting Issuers) generally do not have to file a prospectus (a prospectus describes the investment in detail and gives you some legal protections). Furthermore, Non-Reporting Issuers are not obligated to publish financial information or notify the public of changes in its business.
There is a risk that the Issuer will be unable to meet interest and principal payments on its obligations on a timely basis.
There are no assurances that an investment will maintain its net acquisition value or produce any projected income or capital return. Investment values can frequently fluctuate, and past performances may not be repeated.
Security-Specific Risks
Given the nature of RealShare’s business model, there are certain risk factors which can affect the value of a specific investment holding such as:
Real Estate Industry Investment Risk
Real estate investments are generally subject to varying degrees of risk depending on the nature of the property. Such risks include the highly competitive nature of the real estate industry, changes in general economic conditions (i.e., availability and cost of mortgage funds), local conditions (i.e., the supply of office, industrial, retail space or warehousing or the demand for residential real estate in the area and thereby the prices at which serviced lots and parcels may be sold), government regulation and changes therein (i.e., planning, zoning, taxation of property and environmental legislation), changes in governments and the political environment in the applicable jurisdictions, competition from other available properties and the attractiveness of the property to potential purchasers, including builders. In addition, each segment in the real estate industry is capital intensive and is typically sensitive to interest rates and general economic conditions.
Risks Associated with Real Property
All real property investments are subject to elements of damage and destruction such as fire, flood, and casualty as a result of natural disasters, criminal acts, or negligence that may result in significant losses for your investment holdings.
The risks highlighted above are not conclusive. Risk disclosures specific for each offering are reviewed by RealShare and are presented within the offering memorandum or other offering documents for the issuance.
Offering documents and the risks associated with the securities of an Issuer contained therein should be reviewed thoroughly by an investor or an investor’s professional advisors before making any investment through RealShare.
CONFLICTS OF INTEREST
Canadian Securities legislation requires RealShare to make certain disclosures regarding conflicts of interest. This statement is to inform you of the nature and extent of conflicts of interest that might be expected to arise between RealShare and its clients, including the individuals acting on its behalf. RealShare considers a conflict of interest to be any situation where:
a. the interests of a client and those of RealShare are inconsistent or divergent.
b. RealShare or its Registered Individuals acting on its behalf may be influenced to put their interests ahead of their client’s interests;
c. monetary and/or non-monetary benefits are made available to RealShare or its Registered Individuals acting on its behalf, or where there is a potential detriment to a client which may potentially compromise the trust that a reasonable client has in RealShare or its Registered Individuals.
RealShare and its Registered Individuals take reasonable steps to identify all existing material conflicts of interest and those that we would reasonably expect to arise. RealShare assesses the materiality of the conflict in order to determine the level of risk for each conflict and the controls that will need to be implemented. The “materiality” of a conflict will depend on the circumstances. When determining whether a conflict is material, the Firm should consider whether the conflict may be reasonably expected to affect either of the following or both: (i) the decisions of the clients in the circumstances; (ii) the recommendations or decisions of the Firm in the circumstances.
RealShare manages material conflicts of interest in three ways:
Avoidance: RealShare avoids conflicts of interest that are prohibited by law, as well as any conflicts that cannot be effectively addressed other than by not engaging in the activity that would give rise to the conflict.
Control: In RealShare’s judgment, the conflict of interest can be successfully managed, RealShare will so by restricting access to information and/or separating business functions.
Disclosure: If RealShare is unable to avoid or control the conflict, then RealShare will disclose the conflict to clients appropriately. The clients can then assess the significance of the conflict in light of the services offered by RealShare and determine with RealShare whether and how to proceed accordingly.
RealShare avoids situations that would result in a serious conflict of interest that would be too high a risk for both its clients and market integrity and it will ensure that it always act in the client’s best interest.
RealShare’s policy is to address conflicts of interests in a fair and equitable manner and in the best interests of our clients. With regard to conflicts of interest arising between you and us, we manage conflicts using the following approaches:
i. take reasonable steps to identify existing and reasonably foreseeable material conflicts of interest between a client and RealShare, or any individual acting on RealShare’s behalf;
ii. address all material conflicts of interest in the best interest of the client;
iii. avoid material conflicts of interest that cannot be otherwise addressed in the best interest of the client;
iv. provide affected clients with written disclosure of material conflicts of interest at account opening or in a timely manner thereafter.
Conflicts of Interest
Below is a list of conflicts of interest and the primary methods that RealShare uses to manage them in the best interest of its clients:
Distribution of Related or Connected Issuers
It is an inherent conflict of interest for a registered firm to trade in, or recommend, proprietary products and this conflict is, according to the Canadian Securities Administrators (CSA), almost always a material conflict of interest. Firms that do so must be able to demonstrate that they are addressing this conflict in the best interest of their clients. RealShare distributes securities of a related and connected issuers (Freed Income Fund and Freed Income Fund II. RealShare acts in the best interests of clients when making suitability determinations by having strong product knowledge and conducting thorough collection of know-your-client information. RealShare discloses this potential conflict to clients within the account opening documentation and RealShare will obtain client consent prior to investing in the related and connected issuer. RealShare continuously monitors the performance of its related and connected issuers relative to its competitors in the industry. RealShare discloses all relevant fees and charges so that clients understand the costs associated with their investments.
Referral Agreements
Paid referral arrangements are inherent conflicts of interest which, in the CSA’s experience, are almost always material conflicts of interest, and must be addressed in the best interest of the client. RealShare may enter into referral arrangements from time to time pursuant to which another party may refer clients to us for whom we pay a referral fee, or we may refer clients to another party and receive a referral fee. We will provide affected clients with the details of any such arrangement where applicable, including the parties to the arrangement, the manner in which the referral fee is calculated and the party to whom it is paid. RealShare’s Chief Compliance Officer reviews all referral agreements to ensure that they are aligned with the Firm’s policies and procedures and are consistent with its obligation to deal fairly, honestly and in good faith with its clients.
Outside Activities
Conflicts can arise when registered individuals are involved in outside activities, for example, because of the compensation they receive for these activities or because of the nature of the relationship between the individual and the outside entity. When employees engage in certain activities, interests or associations outside the Firm, a conflict of interest may arise between the employee’s personal interests and those of RealShare and its clients. RealShare has policies and procedures to identify and address material conflicts of interest and risk arising from all outside activities that individuals acting on its behalf may participate in. RealShare has established a reporting mechanism that requires its Registered Individuals to report their outside activities. Before approving any outside activities, RealShare’s Chief Compliance Officer will consider any existing or potential material conflicts of interest and other risks that may arise from such outside activity. If the material conflict of interest cannot be managed or addressed in the best interest of the client and, RealShare will not permit the outside activity.
Internal Compensation Practices
It is an inherent conflict of interest for registered firms to create incentives to sell or recommend certain products or services over others. It is also an inherent conflict of interest for registered individuals to receive greater compensation from their sponsoring firm for the sale or recommendation of certain products or services over others. In the CSA’s experience these are almost always material conflicts of interest. RealShare will receive compensation for EMD services provided to clients. RealShare does not specifically tie an individual employee’s compensation to the sales or revenue generation of the Firm overall or to the registered persons that an individual may supervise. Certain employee(s) compensation may have a commission component. Different products and services that we offer have different related fees. Once an investor on the Platform selects an investment, they are assigned a Dealing Representative who will review their suitability for the investment. This prevents a Dealing Representative from selecting issuers who pay a higher commission. RealShare will only conduct a trade for a client if it deems it to be suitable and in the best interest of the client.
Supervisory Level Compensation
If a registered firm’s compliance or supervisory staff’s compensation is tied to the sales or revenue generation of the firm overall or the registered individuals that they supervise, there is an inherent conflict of interest that may cause them to put their interests ahead of clients’ interests. Members of the Firm’s management team and compliance team are involved in revenue generation decisions and activities. RealShare believes its compliance and supervisory staff properly promote compliance and understand that it is not in the best interest of RealShare or its clients to forsake compliance for growth generally. RealShare makes all investment decisions in accordance with its fiduciary obligations. The supervisory compliance function at the firm is subject to the oversight of the board of directors.
Third Party Compensation
It is an inherent conflict of interest for a registrant to receive third-party compensation. The Canadian Securities Administrators also considers circumstances where registrants receive greater third-party compensation for the sale or recommendation of certain securities relative to others to be an inherent conflict of interest. RealShare receives third-party compensation from issuers (e.g. due diligence fees, success fees, closing fees). This third-party compensation has different compensation rates and amounts received. All the products that RealShare offers are online and publicly accessible to every Investor. Investors can review the range of investment options available to them and then select one based on their preferences. Once an investor on the Platform selects an investment, they are assigned a Dealing Representative who will review their suitability for the investment. RealShare is required by securities regulations to ensure that we make “suitable” investment decisions, in line with investors’ investment objections and risk tolerances. RealShare will only conduct a trade for a client if it deems it to be suitable. Under securities regulations, RealShare has a duty to act fairly, honestly and in good faith with clients.
Gifts and Entertainment
RealShare and its registered individuals have an obligation to avoid or to manage potential material conflicts of interest in the best interests of the firm’s clients, which includes receiving gifts and entertainment from clients and/or issuers. Consistent with regulatory guidance, RealShare has policies and procedures in place to address conflicts relating to gifts and entertainment, which require it to: (i) maintain, review, monitor and assess a log of all gifts and/or entertainment; (ii) prohibit the receipt or provision of any monetary gifts; and (iii) implement guidelines on what the firm considers to be a reasonable amount for the receipt / provision of gifts and/or entertainment.
Employee Understanding of Potential Conflicts of Interest
RealShare employees must maintain a good understanding of the potential conflicts of interests that may arise between the Firm, its employees and its clients in order to avoid. RealShare’s Chief Compliance Officer conducts regular training sessions with the Firm’s registered employees to outline the potential conflicts of interest that may arise in their dealings with clients.
Every director, officer or employee of RealShare shall conduct themselves in a manner consistent with the highest ethical standards. They will avoid any action, whether for personal profit or otherwise, that results in an actual or potential conflict of interest, or the appearance of a conflict of interest, with a client or which may be otherwise detrimental to the interests of a client.
USE OF PERFORMANCE BENCHMARKS
RealShare Inc. does not make use of benchmarks as the nature of the investments recommended do not correspond to any existing benchmarks.
REPORTING
RealShare delivers a trade confirmation when a client purchases or sells a security, setting out the following information:
the quantity and description of the security purchased or sold;
the price per security paid or received by the client;
the commission, sales charge, service charge and any other amount charged in respect of the transaction;
whether the registered dealer acted as principal or agent;
the name of the dealing representative, if any, in the transaction;
the settlement date of the transaction;
if applicable, that the security is a security of the registrant, a security of a Related Issuer of the registrant or, if the transaction occurred during the security’s distribution, a security of a Connected Issuer of the registered dealer.
Additionally, RealShare delivers a client activity statement to clients on a quarterly basis, only if there was any activity in the preceding quarter.
The statements contain the following:
the date of the transaction;
the type of transaction;
the name of the security;
the number of securities;
the price per security; and
the total value of the transaction.
As a registered firm, RealShare Inc. is required to be a member of The Ombudsman for Banking Services and Investments (OBSI). Please see the explainer below.
SECURITIES NOT DEPOSITS
Securities purchased, sold or recommended by us may fluctuate in value, are not deposits, are not guaranteed by the Canada Deposit Insurance Corporation, and are not obligations of or guaranteed by us.
LEVERAGE DISCLOSURE STATEMENT
Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
CONFIDENTIALITY OF INFORMATION
Except as otherwise authorized and/or as required by law or regulatory authority, both RealShare and the client will safeguard and hold confidential from disclosure to unauthorized persons all confidential information not in the public domain, including trade secrets, recommendations and/or any facts learned about the other, directly or indirectly, as a result of the relationship between you, as a client, and RealShare as an exempt market dealer.
COMMUNICATIONS INCLUDING NOTICE
Where you have indicated your desire to receive communications, we will give reasonable notice to you of matters concerning the account. Any notice, and communications generally, are deemed to be delivered if sent to your last known mailing or email address shown in our records, unless you provide us with a new address by written notice.
VERIFICATION
You will examine all statements, confirmations and memoranda provided to you respecting the account and within 30 calendar days of mailing shall notify us of any errors, irregularities, or omissions.
RECORDS
You agree that our records will have the same evidence of proof as original documents and constitute sufficient and formal proof of your transactions in the event of any dispute before the courts or arbitration.
DORMANT ACCOUNTS
You acknowledge and agree that your account will be designated as inactive if we are unable to locate and/or communicate with you for a period of six months. All attempts to locate and communicate with you will be documented and this documentation will be filed with your account information and will be maintained for a period of seven years. After three years have passed, the unclaimed property in your account will be deposited into a trust account and RealShare will continue to try to contact you indefinitely. This process is subject to any applicable laws relating to abandoned property and provisions of applicable disclosure and constating documents or the property in question.
COMPLAINTS PROCESS
If you have a complaint about our services or a product, email us at: info@RealShare.ca or reach us by mail at:
Attn: Aditya Koparde, Chief Compliance Officer
RealShare Inc.
552 Wellington Street W,
Suite 1500
Toronto, ON M5V 2V5
Tell us:
what went wrong
when it happened
what you would like as a resolution
We will acknowledge your complaint in writing, as soon as possible, typically within 5 business days of receiving your complaint. We may ask you to provide clarification or more information to help us resolve your complaint.
Help us resolve your complaint sooner by:
Make your complaint as soon as possible.
Reply promptly if we ask you for more information.
Keep copies of all relevant documents, such as letters, emails and notes of conversations with us.
We normally provide our decision in writing, within 90 days of receiving a complaint. It will include:
a summary of the complaint
the results of our investigation
our decision to make an offer to resolve the complaint or deny it, and an explanation of our decision
If we cannot provide you with our decision within 90 days, we will:
inform you of the delay
explain why our decision is delayed, and
give you a new date for our decision
You may be eligible for the independent dispute resolution service offered by the Ombudsman for Banking Services and Investments (OBSI).
You always have the right to go to a lawyer or seek other ways of resolving your dispute at any time. A lawyer can advise you of your options. There are time limits for taking legal action. Delays could limit your options and legal rights later on.
You may be eligible for OBSI’s free and independent dispute resolution service if:
we do not provide our decision within 90 days after you made your complaint, or
you are not satisfied with our decision
OBSI can recommend compensation of up to $350,000.
OBSI’s service is available to clients of firm. This does not restrict your ability to take a complaint to a dispute resolution service of your choosing at your own expense, or to bring an action in court. Keep in mind there are time limits for taking legal action.
You have the right to use OBSI’s service if:
your complaint relates to a trading or advising activity of our firm or by one of our representatives
you brought your complaint to us within 6 years from the time that you first knew, or ought to have known, about the event that caused the complaint, and
you file your complaint with OBSI according to its time limits below
If we do not provide you with our decision within 90 days, you can take your complaint to OBSI any time after the 90-day period has ended. If you are not satisfied with our decision, you have up to 180 days after we provide you with our decision to take your complaint to OBSI.
Filing a complaint with OBSI
Contact OBSI
Email: ombudsman@obsi.ca
Telephone: 1-888-451-4519 or 416-287-2877 in Toronto
OBSI will investigate
OBSI works confidentially and in an informal manner. It is not like going to court, and you do not need a lawyer.
During its investigation, OBSI may interview you and the representatives of our firm. We are required to cooperate in OBSI’s investigations. OBSI can help you best if you promptly provide all relevant information, including:
your name and contact information
our firm’s name and contact information
the names and contact information of any of our representatives who have been involved in your complaint
details of your complaint
all relevant documents, including any correspondence and notes of discussions with us
OBSI will provide its recommendations
Once OBSI has completed its investigation, it will provide its recommendations to you and us. OBSI’s recommendations are not binding on you or us.
OBSI can recommend compensation of up to $350,000. If your claim is higher, you will have to agree to that limit on any compensation you seek through OBSI. If you want to recover more than $350,000, you may want to consider another option, such as legal action, to resolve your complaint.
For more information about OBSI, visit www.obsi.ca
(Rev. February 19, 2025)