Introducing the Role of a Trusted Contact Person

In the ever-evolving world of investment, it’s crucial to stay ahead and safeguard your financial interests.

That’s where the role of a Trusted Contact Person comes into play — a proactive step in protecting your financial health.

Understanding the Trusted Contact Person

Who is a Trusted Contact Person?

A Trusted Contact Person is an individual whom you authorize in writing for us to reach out to under specific circumstances. This role is crucial for several reasons:

  • To combat potential financial exploitation: We will reach out to them if there’s suspicion of financial misuse against you.
  • For health-related concerns affecting decision-making: If we have concerns regarding your mental or physical capacity to make informed decisions.
  • In cases of unreachable contact: When we’re unable to contact you directly.

Their Contribution – Role of the Trusted Contact Person

Your Trusted Contact Person can provide or verify vital information, including:

  • Identifying possible financial exploitation.
  • Assessing your mental state concerning financial decision-making capabilities.
  • Offering contact details of your Power of Attorney.
  • Updating your latest contact information, especially in cases like travel or recent changes not yet communicated to us.

It’s important to note that while they play a critical role in providing information, they have no control over your account, cannot make decisions on your behalf, and won’t have access to your detailed account information.

Why Appoint a Trusted Contact Person?

Addressing Age-Related and General Risks

  • For Older Investors: Challenges like dementia, which can impair financial decision-making, and the risk of elder abuse make this role essential.
  • For Younger Investors: Health issues and the growing threat of sophisticated financial frauds like cybercrimes also necessitate this safeguard.

The introduction of this role by the Canadian investment industry’s regulator is a testament to the commitment to protect investors across all age groups.

Comparing Roles: Trusted Contact Person vs. Power of Attorney vs. Trading Authority

  • Power of Attorney: This legal document enables someone to make decisions on your behalf. However, the Trusted Contact Person does not hold such legal authority.
  • Trading Authority: Unlike a Trading Authority who can make investment decisions in your account, a Trusted Contact Person’s role is purely informative and advisory without any decision-making power.

Choosing Your Trust Contact Person

Selecting the right Trusted Contact Person is crucial. Ideally, this person should be:

  • Independent of your account’s decision-making processes (not your Power of Attorney or Trading Authority).
  • Mature, knowledgeable about your personal circumstances, and capable of handling sensitive discussions.

Appointing and Updating Your Trusted Contact Person

You can appoint a Trusted Contact Person when opening a new account or during regular updates. It’s advisable to inform them of their nomination and obtain their consent. While optional, appointing a Trusted Contact Person is a strongly recommended protective measure.

Should you choose to change your Trusted Contact Person or elevate them to a Power of Attorney or Trading Authority, updating this designation is straightforward and can be done anytime.

For further assistance or more information about appointing a Trusted Contact Person, please feel free to reach out to us.

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*The comments contained herein are a general discussion of certain issues intended as general
information only and should not be relied upon as tax or legal advice. Please obtain independent
professional advice, in the context of your particular circumstances.