The Ombudsman for Banking Services and Investments (OBSI) today announced the refusal of Richardson GMP to compensate several investors in the amounts of $232,500 and $66,366.
Read: OBSI defies common sense
In two separate cases investigated by OBSI, the complainants (who are all related) were approaching retirement and had accumulated significant assets that they had invested with Richardson GMP. Their advisor placed part of their portfolios in investments that according to OBSI were unsuitable given the complainants’ investment objectives and risk tolerance.
The Ombudsman says Richardson GMP is responsible for the financial harm incurred by the complainants as a result of the investments recommended by the advisor. The firm has chosen not to comply with OBSI’s compensation recommendation.
Andrew Marsh, CEO of Richardson GMP, made the following statement to Advisor.ca:
“At Richardson GMP we’ve always been proud of how we put our clients first–always. We take our professional standards very seriously, and in this particular situation we carefully reviewed it…and found no fault on the part of the advisor or Richardson GMP. That’s why we disagree with the OBSI’s stance.”