OBSI names and shames Saskatoon-based dealer

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.

By Staff | May 28, 2015 | Last updated on May 28, 2015

1 min read

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.

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