The Canadian Securities Administrators (CSA) will start requiring registered dealers and advisors to use the Ombudsman for Banking Services and Investments (OBSI) to resolve client complaints, and firms will have to start informing clients of that fact, too.

In a staff notice published Thursday, the CSA indicates that it is adopting amendments that require firms to use OBSI to resolve complaints, except in Quebec, where the Autorité des marchés financiers (AMF) already provides a mediation service to clients.

“We expect firms to maintain ongoing membership in OBSI as a ‘participating firm’ and participate in OBSI’s services in a manner consistent with the firm’s obligation to deal fairly, honestly and in good faith with its clients,” it says.

The CSA says that the mandated use of OBSI as the dispute resolution service is intended to provide investors with access to a free, independent, consistent dispute resolution service; uniform handling of investor complaints; and, clarity on who investors should contact if complaints are not resolved. Dealers that belong to self-regulatory organizations (SRO), are already required to use OBSI, so the amendments effectively extended that obligation to other sorts of firms, such as exempt market dealers and scholarship plan dealers.

The amendments also require dealers to inform clients in writing about the firm’s obligation to use OBSI, and to set out the steps a client must take in order to be able to use OBSI’s services. And, the notice aims to provide guidance to firms in meeting these new disclosure obligations.

According to the notice, firms must provide clients with information about the availability of independent dispute resolution, and the steps the client must take, at three different points in time — at account opening, when a client makes a complaint, and again when the firm makes its decision on the merits of a complaint.

Firms also need to alert clients to significant changes to relationship disclosure, such as the requirement to use OBSI. “Sending it separately or including it with an upcoming client communication, such as their next monthly or quarterly statement, or before doing a transaction, would satisfy this obligation,” it notes.

The amendments, subject to necessary approvals in each CSA jurisdiction, come into force May 1; although there is a three-month transition period, ending August 1.