CFFiM: PROPOSAL TO GRANT OBSI BINDING AUTHORITY UNCONSTITUTIONAL

TORONTO, Sept. 30, 2025 /CNW/ - The Canadian Forum for Financial Markets (CFFiM)/Forum Canadien des Marchés Financiers (FCMFi) is dedicated to advancing proposals that foster healthy, competitive financial markets and a stronger, more resilient Canadian economy for the benefit of all Canadians.

The Ombudsman for Banking Services and Investments (OBSI) has, over its 25-year history, resolved thousands of disputes between participating financial firms and their clients, all without requiring binding decision-making powers. The Canadian Securities Administrators (CSA)'s Proposed Framework fundamentally alters the OBSI's role to the detriment of investors and the firms and representatives who service them.

The CFFiM has raised the following concerns:

Lack of Supporting Data or Substantive Analysis

• The Proposed Framework is not backed by sufficient data or analysis showing that refusals or low settlements are a systemic issue. In fact, they are exceedingly rare. The Proposed Framework proposes a solution to a problem that does not exist.

The Proposed Framework is Unconstitutional

• The Proposed Framework lacks a disclosed constitutional analysis. Based on the information that has been disclosed, it establishes an adjudicative body that violates s. 96 of the Constitution Act, 1987.

Negative Implications

• The Proposed Framework risks creating an inconsistent regulatory landscape that hampers innovation, competition, and investment in Canada's capital markets, undermines the OBSI's independence, and fails to uphold basic procedural fairness.

"To advance the important goal of providing investors with a fair and efficient system of redress, efforts should focus on refining OBSI's existing framework in a matter consistent with the data", said CFFiM's President and CEO, Laura Paglia. "Enhancing OBSI's 'name and shame' powers and introducing external mediation to the OBSI process are simple, cost-effective changes. It will be deeply concerning if the Proposed Framework proceeds despite its significant deficiencies", she said.

Read the CFFiM's full submission online.

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SOURCE Canadian Forum for Financial Markets (CFFiM)

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