Imagine you notice unexpected fee charges in your investment account or feel your financial advisor has given you advice that resulted in unexpected losses. You first raise your concerns with your advisor, then escalate to their manager, but your issue remains unresolved. Frustrated, you turn to the Ombudsman for Banking Services and Investments (OBSI), Canada’s independent dispute-resolution service.
After a detailed investigation, OBSI finds adequate reasons for your complaint and finds in your favour. OBSI recommends that your advisor compensate you for the financial loss you have experienced.
However, under the current system, OBSI’s authority is limited. Its recommendations are not legally binding. Firms can choose not to follow OBSI’s recommendations, leaving everyday investors without meaningful recourse.
Change, however, is on the horizon. As part of the initiative to enhance OBSI’s authority in resolving disputes between investors and their firms, the Canadian Securities Administrators (CSA) recently launched a second public consultation on a proposed framework. This would give OBSI the legal authority to make binding decisions in investment-related complaints.
What is OBSI, and how does it protect investors?
OBSI is Canada’s independent dispute-resolution service for banking and investment complaints. It reviews complaints from investors who have not been able to resolve their complaints directly with firms. If OBSI finds that financial harm has occurred as a result of a firm’s conduct, it can recommend compensation up to $350,000.
OBSI is not a regulator. It does not set or enforce rules for the conduct of firms or advisors. That responsibility lies with regulatory bodies like the Alberta Securities Commission (ASC), which oversees Alberta’s capital market, or the Canadian Investment Regulatory Organization (CIRO), which regulates dealers and advisors across Canada.
What makes OBSI especially important is its accessibility for retail investors who may not have the means to pursue legal action.
Are OBSI’s decisions legally binding?
Currently, firms that participate in the OBSI dispute resolution process are not legally required to follow its recommendations. While many firms comply, some refuse to do so either partially or entirely. When a firm refuses to comply with an OBSI recommendation, the investor is left with a decision in principle, but no way to make it happen.
While OBSI does publish the names of firms that decline to comply, investor advocates and independent reviewers say this “name and shame” approach has not been effective in ensuring compliance with OBSI recommendations.
What is the CSA’s proposed framework for OBSI?
In July 2025, the CSA, the umbrella organization of Canada’s provincial and territorial securities regulators, including the ASC, shared proposed enhancements to a framework to improve Canada’s dispute-resolution service for investors. The framework includes details of the proposed oversight of OBSI and it builds on the proposed framework that was initially shared in late 2023. The framework reflects years of dialogue and growing calls for strengthening OBSI’s mandate from investor advocates.
Key elements of the proposed framework include:
- OBSI decisions would become legally binding: Under the proposed framework, if OBSI finds in favour of an investor, its decision would be enforceable like a court order. Firms would be required to comply.
- External decision-makers for higher-value cases: In cases where recommended compensation is $75,000 or more, an external decision-maker would be appointed to ensure fairness and transparency.
Together, these changes are intended to give OBSI the authority — not just the mandate — to ensure meaningful and fair outcomes for investors and firms.
Why does this matter for investors?
For most Canadian investors, including Albertans, OBSI is one of the few accessible avenues to resolve disputes and seek fair compensation. Without the power to enforce its recommendations, OBSI’s impact has been limited.
Binding authority would help ensure all investors, regardless of resources, are treated fairly. Instead of relying on a firm’s goodwill or accepting less than the recommended amount, investors would have access to a fair and impartial process with enforceable outcomes.
Stronger investor protections, like this framework that has been proposed by the CSA, support the broader mandate of provincial regulators such as the ASC to foster a fair and efficient capital market.
Share your feedback: Support stronger Canadian investor protection
The CSA is asking Canadians to share their thoughts on the proposal. Your voice as an Albertan, matters.
If you have ever gone through the complaint process or have comments about the fairness and accountability of the proposed framework, this is your chance to weigh in.
The comment period is open until September 29, 2025.
You can read more about the proposal and find instructions on how to submit your feedback within the consultation notice.
If you have questions, you can reach out to: Eniko.Molnar@asc.ca
Whether you support the proposal or think it could be strengthened, investor voices like yours can help shape the final framework.
Know your rights and protect yourself as an investor
Investor protection begins with knowing your rights. CheckFirst offers unbiased, easy-to-understand resources to help you feel more confident when dealing with your investments — whether you’re making a decision on your own or working with a financial advisor.
Here are some resources to help you with your investment journey:
The more you know, the better prepared you are to protect your investments.
