elderly-man-surprised

OBSI has announced that Sentinel Financial Management Corp. has refused the ombudsman’s recommendation to compensate a retired investor in the amount of $55,000.

Read: OBSI defies common sense

Sentinel is a mutual fund dealer based in Saskatoon. The investor, Ms. G, was 63 years old when she started investing at Sentinel. Now retired, her income consisted of Canada Pension Plan payments, Old Age Security, Guaranteed Income Supplement and occasional withdrawals from her modest Locked-In Retirement Account.

OBSI says its investigation determined Ms. G relied heavily on her Sentinel advisor for investment advice, including how to manage her modest retirement savings. OBSI found that Ms. G was unaware she was sold “off-book” investments (meaning the Sentinel advisor sold the security outside of the firm).

Read: OBSI defends naming and shaming

The advisor deposited Ms. G’s money in the advisor’s personal account. None of the funds were actually invested and Ms. G never recovered any of the funds.

Sentinel is responsible, says OBSI, for the financial harm incurred by Ms. G as a result of the off-book investment.

Click here for more details on this case.

Also read:

How to deal with client complaints

OBSI ‘names and shames’ 3 more firms

Originally published on Advisor.ca
See all commentsRecent Comments

WALTER.ROSOCHA

This report needs clarification.

I don’t see how a trust company, managing a locked-in account would distribute money to the advisor.

Also, how can any dealer and its compliance know what a rogue advisor is up to until the deed is done.

Heavy punishment should be meted out to the advisor – heavy jail terms, confiscation of advisor assets to pay off the client, etc.

Unless the dealer is complicit or negligent in supervising, how can OBSI justly shame the dealer?

The rogue advisor should be named and shamed!

Thursday, May 28 @ 9:42 pm //////

DEAN.DISPALATRO.1

I’ve updated the post to include a link to OBSI’s more detailed public statement on this case. Here it is:
https://www.obsi.ca/download/blog/610

Friday, May 29 @ 9:18 am

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