Chapter 10 - Client Compliants

Question 1

What must be provided to the client at the time of account opening (re: complaints)

Answer 1

1. Written summary of the firm’s compliant handling procedures
2. A copy of an approved compliant handling process brochure.

Question 2

Within how many days must an Acknowledgement letter be sent to the client?

Answer 2

5 Business Days of receipt of the complaint.

Question 3

How long must complaint files be retained?

Answer 3

7 years

Question 4

What Powers does the Arbitrator have?

Answer 4

Decides how the dispute should be resolved and what remedy should be imposed (if any).

Question 5

In Arbitration: can either or both parties be represented by Counsel?

Answer 5

Yes.

Question 6

In Arbitration: are enforcement and compensation proceedings separate or together?

Answer 6

They are Separate. A decision in one proceeding does not affect the other.

Question 7

When must a Dealer submit to arbitration at the client’s option?

Answer 7

When the claim does not exceed $500,000.

Question 8

Under what circumstances can information from an Arbitration hearing be made public or external?

Answer 8

Information can only be obtained by subpoena issued by a court or by a regulator with an investigative order.

Question 9

What is the maximum $$ value for a claim going to OBSI?

Answer 9

$350,000

Question 10

For Court Proceedings where not under the Securities Act, what are the general time limitations on a claim?

Answer 10

Generally 2 years from the date of discovery and no more than 15 years after the act or omission.

Question 11

By copying counsel, does a document attract Privilege?

Answer 11

No - a document must be addressed to counsel seeking advice and counsel must be actively providing advice. ACTS & FACTS within the document are not privileged, only the communication

Question 12

Explain Litigation Privilege

Answer 12

Applies to documents or communications between counsel and 3rd parties - 1) Litigation must be under way or expected and 2) document or comm was made for use in litigation.

Question 13

Does litigation privilege only apply to Client-Lawyer documents?

Answer 13

No - Once litigation is contemplated, all communications by counsel for use in that litigation are protected

Question 14

Why do we mark Offer letters in a dispute “Without Prejudice”

Answer 14

Any disclosure made Without Prejudice, during dispute discussions, cannot be used against them in proceedings if attempts to settle fail. WP allows for constructive settlement discussions