Richardson GMP Ltd. refuses to compensate investors following two separate investigations by the Ombudsman for Banking Services and Investments (OBSI), the ombudsman announced on Wednesday. Both organizations are headquartered in Toronto.
OBSI states that Richardson GMP should compensate two investors $232,500 and $66,366 for the financial harm the clients, who were approaching retirement, incurred from unsuitable investments recommended by one the firm’s advisors.
This announcement is in keeping with OBSI’s recent decision to report on a firm’s refusal to compensate clients following a 30-day report review period.
OBSI to place greater pressure on firms
OBSI is Canada’s national independent dispute resolution service for consumers and small business with a complaint that cannot be resolved with their banking services or investment firm. The organization investigates complaints regarding most banking and investment matters such as, investment advice, fraud, debt and credit cards, mortgages and misrepresentation. In cases where the complaints are merited OBSI may recommend compensation up to a maximum of $350,000.