Dale Jackson

Personal Finance Columnist, Payback Time

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As that demographic bulge known as the baby boomers passes into retirement, the Ontario Securities Commission is taking measures to protect them from scammers – and themselves.

The proposed “Seniors Strategy” is really something for all generations, considering one-in-four Ontarians is expected be aged 65 or older by 2041, and life expectancy in Canada has climbed to 84 for men and 87 for women.

At the same time, traditional defined-benefit pensions where payouts are guaranteed for life are giving way to defined-contribution pensions where investments that are subject to the whims of the broader markets. 

The OSC recognizes that the financial lives of seniors are becoming more complex, with incomes coming from more potentially volatile sources, higher debt levels, and a greater share of their assets in their homes.

The strategy focuses on the potential exploitation and cognitive impairment of older investors, and is considering a number of measures including:

• A requirement that advisors obtain the name and contact information for a client’s “trusted contact person” that may be reached if there is a concern about a client’s behaviour or transactions in the account.
• Enabling advisors to place a temporary hold on disbursements from a client's account or make a disclosure to a trusted contact person if they believe that exploitation or fraud is taking place, and think a client’s judgement may be impaired.
• Guidance for registered firms and their representatives when engaging with older clients, such as collecting sufficient information about a client, supervising client accounts, and communicating effectively with clients and supporting their decision-making as they age.
• Addressing the use of confusing and misleading titles, designations, and marketing practices, including issues related to older investors.