Due to growing number of scams cases, Canada launches its first Investor Protection Clinic. Canadian Investor Protection Clinic to Provide Free Legal Advice and assistance to people in Ontario and protect investors from scams. Will the clinic be the useful tool for vulnerable investors? Let’s discuss the function of Investor Protection Clinic.
10 October, AtoZForex – Canada is stepping up efforts to secure protection of vulnerable investors. Considering the matter, it has launched its first Investor Protection Clinic in the country. The clinic aims to provide free legal help to investors which have suffered losses due to misconduct, or other failings.
Canadian Investor Protection Clinic to provide free legal advice
According to a report, it is a joint project of FAIR Canada, the Law Foundation of Ontario and Osgoode Hall Law School. The clinic will assist investors by writing letters to companies and authorities, and by giving available options to the investor.
Also, it will represent affected clients at hearings if needed. Importantly, the clinic made clear that it is unable to help with market losses and risks inherent in investing. This is a key difference between the clinic and the fraudulent schemes.
According to Osgoode Hall law professor Poonam Puri:
“Institutional investors can take care of themselves for the most part. But most people are not going to have the funds to hire a lawyer when things go wrong with their investments, and a regulator like the Ontario Securities Commission can’t help everybody.”
Additionally, it is staffed with Osgoode Hall Law School students that are paired with Ontario lawyers. The clinic also functions as a research lab, collecting data in an anonymized way that will use for research purposes. In general, it will review each request for legal assistance which provides an investor with legal service. The clinic will also decide whether or not to take a person on as a client by considering factors such as income, assets, net worth, and the nature of the concerns.
In a related issue, Lawyer Marian Passmore, director of policy and COO at FAIR Canada commented:
“The clinic will help Ontarians navigate a very complicated area involving securities, banking and insurance products when average investors have experienced some sort of loss of their investments in some way, and don’t know where to start when that happens to them.”
CSA binary options ban
The launch of the Investor Protection Clinic came shortly after the Canadian Securities Administrators (CSA) made an announcement of the ban on binary options. The ban covers all sorts of “binary options”. It will apply to binary options, regardless of the specific name. This means that the prohibition will cover (
This means that the prohibition will cover ( the list is not exhaustive) “all-or-nothing options”, “asset-or-nothing options”, “bet options”, “cash-or-nothing options”, “digital options”, “fixed-return options” and “one-touch options”. The new rules prohibit advertising, offering, selling or otherwise trading a binary option with or to an individual.
Indeed, with the increasing number of scams and misused funds cases, the Canadian Investor Protection Clinic is likely a useful tool for vulnerable investors.
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