Latest news with #OntarioSecuritiesCommission
Cision Canada
a day ago
- Business
- Cision Canada
Stéphane Gagnon sentenced to five years and ordered to pay over $7.75 million
TORONTO, July 23, 2025 /CNW/ - The Ontario Securities Commission (OSC) announced today that Stéphane Gagnon, formerly of Ottawa, Ontario was convicted on one count of Fraud over $5,000 contrary to Section 380(1)(a) of the Criminal Code (Code) and one count of 'Use of Forged Document' contrary to Section 368(1) of the Code. Mr. Gagnon was found guilty by the Superior Court of Justice in Toronto and was sentenced to 5 years in jail less time served and was also ordered to pay back the whole net amount of the fraud totaling over $7.75 million. The court ordered restitution to the victims and a fine in lieu of forfeiture. If Mr. Gagnon does not pay the fine, he may serve additional time in jail. "Today's decision is a significant outcome for Ontario's investors who were harmed by Mr. Gagnon's actions," said Bonnie Lysyk, Executive Vice President of Enforcement at the OSC. "Where the OSC sees evidence of harm, we will take action to protect investors, and the integrity of our capital markets. We are pleased with the judgment of the Superior Court and thank everyone involved in this case." In an agreed statement presented to the Court, Mr. Gagnon admitted that between August 1, 2015, and May 31, 2021, he received more than $20 million from victims across Canada. He advertised to the public that he could help people access funds in their locked-in retirement accounts if they invested their money in his company. Mr. Gagnon accepted funds from more than 300 investors and then used a significant portion of the money for other purposes. He also admitted that he used forged lawyers' letters to attempt to continue his business relationship with one of the trust companies into which the victims' money had been deposited. This case was brought by the OSC's Criminal Investigations & Prosecutions team, which is part of the Enforcement Division of the OSC. They investigate securities-related frauds, market manipulation, and related misconduct, including the investigation of repeat offenders and those who breach Capital Markets Tribunal or court orders and bans. Their primary objective is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. To do this, they often partner and collaborate with other law enforcement agencies and police forces. Charges laid under the Securities Act are prosecuted by the OSC. Charges laid under the Criminal Code are prosecuted by the Ministry of the Attorney General. The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets, and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at
Yahoo
10-07-2025
- Business
- Yahoo
Canadian regulators warn of high-pressure sales tactics at big banks
Canadian securities regulators are raising serious concerns about aggressive sales tactics inside the country's largest banks. A new report from the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO) reveals that many mutual fund dealing representatives at the bank branches are under pressure to prioritize sales, with some admitting they have recommended products that may not be suitable for clients. The findings suggest that investors may not be receiving advice that truly reflects their financial needs. 'While it's clear that many bank representatives are prioritizing quality advice, it is also clear that sales pressures and incentivization may be driving concerning behaviours,' said Grant Vingoe, CEO of the OSC, in a statement. 'The focus of the bank representatives should be the best interests of their customers and clients — not feeling heightened pressures to meet sales targets.' The survey reveals that 32 per cent of representatives agree that the way they're compensated puts more value on sales volume than the quality of advice given to clients. 'We pay lip service to financial planning,' said one anonymous mutual fund representative in the survey. 'Someone who sells a huge mutual fund is viewed more favourably than someone who ran a complex financial plan and helped the client but in a more modest, financially ethical and healthy way. This needs to change.' Jason Pereira, senior partner and financial planner at Woodgate Financial, says Canadians should be aware that banks have no obligation to work in their best interests. Mutual fund dealing representatives don't have fiduciary responsibility, which is a legal and ethical requirement to prioritize clients' interests above their own or their institutions. Instead, they have a suitability responsibility, which means a product has to be suitable for a situation. 'That doesn't mean they won't recommend something that isn't a conflict of interest,' he said. More than half of representatives (56 per cent) say that scorecards — a means of tracking performance against target measures — add significant pressure on them to increase sales, while 58 per cent agree that scorecards draw attention to the individual representatives who are not hitting sales or other targets. Twenty-five per cent of representatives say that clients have, at least 'sometimes,' been recommended products or services that are not in their interests. 'I feel more like a salesperson than an investment advisor,' one representative said. One-third of the representatives polled also note that at least 'sometimes,' clients have been given incorrect information about the products or services being recommended to them. 'There needs to be more training for newly registered mutual fund representatives,' another representative said. 'I find they often don't even know how to put together a portfolio based on their Know Your Client [understanding the client's financial profile]. They don't know the proper investment sale process. They don't even know the list of mutual funds available for sale by the bank.' Andy McNair-West, a spokesperson for the OSC and CIRO, encourages consumers to not feel pressured to make any immediate decisions. Instead, they should take time to consider the information and seek additional advice if needed. Consumers should be inquisitive, Pereira says. 'The people sitting across from them should have to earn trust, not receive trust because of the logo that they're affiliated with.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Canadian regulators warn of high-pressure sales tactics at Canada's big banks
Canadian securities regulators are raising serious concerns about aggressive sales tactics inside the country's largest banks. A new report from the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO) reveals that many mutual fund dealing representatives at the bank branches are under pressure to prioritize sales, with some admitting they have recommended products that may not be suitable for clients. The findings suggest that investors may not be receiving advice that truly reflects their financial needs. 'While it's clear that many bank representatives are prioritizing quality advice, it is also clear that sales pressures and incentivization may be driving concerning behaviours,' said Grant Vingoe, CEO of the OSC, in a statement. 'The focus of the bank representatives should be the best interests of their customers and clients — not feeling heightened pressures to meet sales targets.' The survey reveals that 32 per cent of representatives agree that the way they're compensated puts more value on sales volume than the quality of advice given to clients. 'We pay lip service to financial planning,' said one anonymous mutual fund representative in the survey. 'Someone who sells a huge mutual fund is viewed more favourably than someone who ran a complex financial plan and helped the client but in a more modest, financially ethical and healthy way. This needs to change.' Jason Pereira, senior partner and financial planner at Woodgate Financial, says Canadians should be aware that banks have no obligation to work in their best interests. Mutual fund dealing representatives don't have fiduciary responsibility, which is a legal and ethical requirement to prioritize clients' interests above their own or their institutions. Instead, they have a suitability responsibility, which means a product has to be suitable for a situation. 'That doesn't mean they won't recommend something that isn't a conflict of interest,' he said. More than half of representatives (56 per cent) say that scorecards — a means of tracking performance against target measures — add significant pressure on them to increase sales, while 58 per cent agree that scorecards draw attention to the individual representatives who are not hitting sales or other targets. Twenty-five per cent of representatives say that clients have, at least 'sometimes,' been recommended products or services that are not in their interests. 'I feel more like a salesperson than an investment advisor,' one representative said. One-third of the representatives polled also note that at least 'sometimes,' clients have been given incorrect information about the products or services being recommended to them. 'There needs to be more training for newly registered mutual fund representatives,' another representative said. 'I find they often don't even know how to put together a portfolio based on their Know Your Client [understanding the client's financial profile]. They don't know the proper investment sale process. They don't even know the list of mutual funds available for sale by the bank.' Consumers should be inquisitive, Pereira says. 'The people sitting across from them should have to earn trust, not receive trust because of the logo that they're affiliated with.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Global News
09-07-2025
- Business
- Global News
Quarter of Ontario mutual fund dealers have sold unneeded products: survey
A regulator-led survey of Ontario mutual fund dealers based out of big banks shows a sizable minority are not always acting in the interest of clients. The survey of close to 3,000 dealers by the Ontario Securities Commission and the Canadian Investment Regulatory Organization found that 25 per cent say they have at least sometimes recommended products or services to clients that are not in their interest. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy OSC chief executive Grant Vingoe says the results of the survey show sales pressures and compensation incentives may be driving concerning behaviour. The regulator launched the study in response to a CBC investigation last year that alleged bank sales targets were leading dealers to pressure customers to sign up for financial products they didn't need. The survey found 23 per cent of dealers agreed there is high pressure to sell potentially unneeded products or services, while 60 per cent disagreed with the statement. Story continues below advertisement The OSC says next steps in its review include learning more about the sales practices in place at banks, and understanding the controls dealers have to address any material conflicts of interest.
Cision Canada
08-07-2025
- Business
- Cision Canada
OSC publishes draft Action Plan for Truth and Reconciliation
TORONTO, July 8, 2025 /CNW/ - The Ontario Securities Commission (OSC) today published its draft Action Plan for Truth and Reconciliation (APTR) for engagement and is seeking feedback from interested or affected parties, including rightsholders in Ontario, Indigenous organizations, market participants, regulators, investors and investor advocates. Further to the Calls to Action from the Truth and Reconciliation Commission of Canada, the OSC is developing the APTR as part of its vision to ensure that Ontario's capital markets are inviting, thriving and secure for everyone. The APTR will serve as a roadmap for how the OSC can build a culturally aware, safe and more inclusive workforce, while working collaboratively with Indigenous peoples and partners and communities to foster a culture of inclusion and investor confidence for the benefit of all. "The OSC is committed to pursuing truth and reconciliation and in supporting equitable access to the capital markets by, with and for Indigenous Peoples in Ontario," said Grant Vingoe, CEO of the OSC. "We look forward to engaging with and receiving feedback that we will consider when we publish our inaugural Action Plan for Truth and Reconciliation." While the OSC is always open to ongoing engagement, feedback and response letters are due by October 31, 2025, so that the OSC can consider them as it prepares its inaugural APTR for publication. Feedback can be provided by: Attending a roundtable discussion session. Session dates and registration information will be posted shortly on the OSC's website. Requesting a meeting with the OSC via email to [email protected]. A written response letter. Response letters should be submitted electronically in PDF or Word format via email at [email protected]. Attending the final Ontario-wide roundtable discussion session on October 21, 2025. The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at
