Securities Dispute Resolution – Sample Client Disclosure Letter for Exempt Market Dealers and Others

Effective May 1, 2014, all new registered dealers and advisors across Canada, except in Quebec, must take reasonable steps to ensure that the Ombudsman for Banking Services and Investments (OBSI) will be the independent dispute resolution or mediation service that is made available to a client that has an eligible complaint.  For more information about OBSI and the dispute resolution or mediation service requirements for exempt market dealers and other registered firms in Canada, please see my immediately prior post titled Dispute Resolution and Mediation Requirements Effective for Registered Securities Dealers and Advisors in Canada – 14 Things You Should Know!

For purposes hereof, a registered firm means a registered dealer or advisor that is not a member of an SRO, such as IIROC, and does not include a registered investment fund manager while a complaint refers to a complaint involving trading or advising activity of a registered firm.

As discussed in my immediately prior post, at account opening, a registered firm must provide its client with clear and meaningful written disclosure about the registered firm’s obligations to them if a client has a complaint  and the steps that the client must take in order for an independent dispute resolution or mediation service to be made available to the client at the firm’s expense.

A sample client disclosure letter is set out below as provided by the Canadian Securities Administrators.


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This blog is not intended to create, and does not create an attorney-client relationship. You should not act or rely on information on this blog post without first seeking the advice of a lawyer.  This material is intended for general information purposes only and does not constitute legal advice.  For legal issues that arise, the reader should consult legal counsel.

Koscak_bBrian Koscak is a Partner at Cassels Brock & Blackwell LLP located in Toronto, Ontario and Chair of the Private Capital Markets Association of Canada (formerly, the  Exempt Market Dealers Association of Canada). Brian is also a member of the Ontario Securities Commission’s Exempt Market Advisory Committee and Co-Chair of the Equity Crowdfunding Alliance of Canada.  Brian can be reached by phone at 416-860-2955, by e-mail at or on twitter @briankoscak. Brian also regularly writes about Canadian securities law matters on his personal blog at

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