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CSA – 25-314 – Proposed Binding Authority OBSI
Letter Summary:
The Canadian Securities Administrators (CSA) has provided for comment more details on the proposed framework for an independent dispute resolution service with binding authority – anticipated to be the Ombudsman for Banking Services and Investments (OBSI). The consultation includes a proposed oversight model for OBSI and refinements on the review and decision stage of the dispute resolution process.
Overview of Comments:
The Canadian Advocacy Council (CAC) has submitted comments on CSA Notice and Request for Comment 25-314, which outlines a proposed framework granting binding authority to the Ombudsman for Banking Services and Investments (OBSI). The CAC strongly supports binding decisions by OBSI as an important step in strengthening investor protection, but raised concerns about the level of regulatory oversight proposed.
The CAC cautioned that requiring multiple CSA approvals could add unnecessary costs and undermine OBSI’s independence, a key feature for maintaining public trust. Instead, the CAC recommends a more tailored approach, including oversight focused on governance standards rather than line-by-line approvals.
The submission also reiterated CAC’s call to raise the OBSI compensation limit from $350,000 (unchanged since 1996) to $500,000 with cost-of-living adjustments, and supported maintaining the current six-year limitation period.