22 July 2019 11:30
Photo : Freepik
Canadians over the age of 60 are more likely to complain about financial services, says the first Report on the elders of theOmbudsman for banking services and investments (OBSI), published in July 2019.
The elders represent 30 % of the canadian population. Yet, they are the origin of 38 % of the complaints received by OBSI on two years, 2017 and 2018.
Mutual funds : the advisors pointed out
In the case of investment, the majority of these complaints relate to two products in particular. The largest number of complaints made by the elders relate to the mutual fund. Just behind come the complaints about the common shares.
“Their complaints are primarily designed to advice received at the time of making these investments,” reports the non-profit national organization. In fact, the suitability of the investment products advised is the leading cause of complaints in the area of investment. The other reason for complaint the most common includes disclosure, false statement, and the calculation of costs.
Fraud, bank problem number 1
On the banking services side, the fraud is the problem most often reported by seniors over 60 years of age. The disclosure of information on products and false representation are the other reason of complaint is most prevalent among the more than 60 years.
Note that in the elderly over 70 years of age, the funds that are missing or lost are the pattern leading to the most complaints, equally with the ground of fraud.
Improve media communication
The elders face a number of challenges, including difficulties related to communications. They lack the capacity of concentration required to read disclosure documents are often too long and too dense, notes the report.
Because of this, the OMBUDSMAN recommends that the financial services providers and regulators to use the documents shorter and simpler than the elders can also take in the purpose of the review with family members or trusted advisors before making a decision “.
The financial abuse of elders is a recurring concern in recent years. In 2017, the Journal of insurance had published a series of three texts on the issue :
- Financial exploitation of elders is the form of abuse the most prevalent
- Financial abuse of elders : the accounting deplore the silence
- Financial abuse against seniors : the financial advisors could bring relief