BULLETIN #0857-ME

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For Public and Media Inquiries:/
Pour les demandes de renseignements du public et des médias :

Ian Strulovitch

Director, Communications & Public Affairs and Senior Legal Counsel

(416) 943-7425

istrulovitch@mfda.ca

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Matthew Brady

Managing Director, Compliance

(416) 943-4621

mbrady@mfda.ca

BULLETIN #0857-ME

April 27, 2021

Vulnerability and Financial Advice: A Broader Look at the Factors That May Increase the Risk of Client Vulnerability

One of the MFDA’s key regulatory priorities is the protection of seniors and vulnerable clients. Over the last several years, the MFDA has implemented several policy, education and regulatory initiatives to meet this objective.

Older clients and clients with limited financial resources can be more likely to display characteristics of vulnerability than other clients. As noted in the 2020 MFDA Client Research Report, 22% of MFDA Member clients were 65 years of age or older. Further, 18% of clients 65 years of age or older had less than $100,000 in financial wealth. However, age and limited savings are not the only factors that increase the risk of vulnerability. Accordingly, the MFDA is issuing a paper for educational purposes and to promote further awareness and discussion of client vulnerability. The paper does not interpret or replace any existing regulatory requirements or create any new regulatory requirements. In particular, the paper does not interpret the proposed Amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and changes to Enhance Protection of Older and Vulnerable Clients.

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