OBSI explained it had received many complaints from investors who used their credit card to buy binary choices. These investors later disputed credit card
fees related to these transactions. They thought that because they did not receive the promised services (including the capability to draw their investment capital) the issuing credit card company should enable a chargeback or reversal of the fee. The Ombudsman found that the banks included were not responsible for the collapse of the chargeback request since they followed the standard chargeback policies and procedures.
Apart from common shares, investment products complaints varied only slightly from the typical over the past ten quarters.
Canadian investors are still targeted by binary choices fraudsters at the surface of the ban on the offering and marketing of those products. In a Bulletin published in August 2018, OBSI cautioned that binary options pose a systemic threat.
Suitability stayed the most frequently complained about investment dilemma in the election to end-January 2019, though such complaints dropped to 17 in comparison to this eight-quarter average of 21. The number of incomplete/inaccurate disclosure complaints also dropped, decreasing from an average of 8 complaints within the previous eight quarters to 3 ailments in the 3 months to January 31, 2019. .
Permit ’s recall thatin FY 2018, OBSI enrolled a 5% increase in cases started, from 721 from 2017 to 760 in 2018. Investment complaints dropped from 351 cases started in 2017 to 345 in 2018. Banking cases started continued a trend, rising from 370 in 2017 to 415 in 2018up 12% year over year.
In contrast to 2017, there were declines reported in the very best investment problems in 2018 in most categories except incomplete/inaccurate disclosure, which rose 17%. Cases associated with suitability of gross or leverage decreased 39% compared to 2017.
The amount of investment cases opened, however, increased over the eight-quarter average, from 87 opened cases into 97.
The sharp fall in bank and total cases started is due to the death of the Bank of Nova Scotia (BNS) and its subsidiary Tangerine at the conclusion of the 2018 year.
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