Sotos partner Harold Geller recently spoke with Investment Executive about the guidance and what it could mean for advisors and the consumers who rely on their recommendations.

Drawing on his experience litigating investor loss claims, Harold focused in particular on the evidence advisors should have to support their recommendations.

KYC, needs analysis, KYP and suitability are, in Harold’s words, “a show-your-work exercise for advisors.”

Among other things, he said advisors should have a documented comparison of the reasonable range of alternative products available when making a recommendation.

Harold also addressed the requirement for a clearly documented needs analysis. While needs analysis has long been industry guidance, he told Investment Executive that, in his experience as a litigator, he has yet to see one in an advisor’s file.

He also questioned whether consumers receive enough information to properly assess the value of segregated fund guarantees and commented on chargeback structures and the need for meaningful advisor training.

The guidance, published by the Canadian Council of Insurance Regulators and the Canadian Insurance Services Regulatory Organizations, establishes national expectations for insurers and intermediaries involved in the design, sale and servicing of segregated funds.

Harold co-leads the Sotos Investor Protection Group, which represents investors, policyholders, beneficiaries and families in investment loss, unsuitable advice, financial advisor misconduct and life insurance disputes.

Read the full Investment Executive article: “Seg funds guidance targets insurance advisor competency, client need.”

The post Harold Geller Discusses Segregated Fund Guidance with Investment Executive appeared first on Sotos LLP.

Harold Geller recently spoke with The Globe and Mail about that question following reports of a second TD Direct Investing customer alleging significant losses from unauthorized trades involving a volatile stock.

According to The Globe and Mail, the investor alleges that scammers gained access to his account, sold approximately $234,000 of his existing investments and purchased nearly $355,000 in shares of a little-known Chinese company. The investor says he was left with a loss of approximately $93,000.

The report follows an earlier case involving another TD Direct Investing customer who alleges that unauthorized transactions were used to purchase more than $5 million of the same security, resulting in losses of approximately $4.5 million. TD has denied liability in that proceeding, and the allegations have not been tested in court.

When should an investment dealer intervene?

For investors, unauthorized trading in an investment account can raise questions that go beyond how access to the account was obtained. Depending on the circumstances, questions may also arise about unusual transaction activity, verification of trading instructions and the steps taken by an investment dealer after suspicious activity is identified.

Speaking with The Globe and Mail, Harold noted that investment dealers often have authority to delay trades to verify the legitimacy of an investor’s instructions. At the same time, delaying a transaction can create its own risks in a rapidly moving market.

Harold also noted that current regulations provide little guidance about when a financial institution should reasonably be expected to pause an unusual trade to protect an investor’s account from fraud.

What should investors do if they discover unauthorized trades?

An investor who discovers potentially unauthorized activity should contact their investment dealer or financial institution promptly and document what has occurred. Account statements, transaction records, communications with the dealer and records relating to access to the account should be preserved.

Where unauthorized trading has resulted in a significant financial loss, an investor may also wish to obtain legal advice about the circumstances of the transactions and their rights.

About Harold Geller

Harold Geller is a Partner at Sotos LLP and leads the Sotos Investor Protection Group. He has assisted more than 1,500 investors and represents individuals who have suffered significant financial losses.

Sotos Investor Protection Group represents investors in disputes involving investment dealers, financial institutions and investment advisors, including matters involving unsuitable investments, complex or high-risk investment strategies, liquidity restrictions and other circumstances resulting in significant investment losses.

Read the full article in The Globe and Mail: “Second TD investor alleges fraudulent trades involving obscure Chinese stock.”

If you have suffered significant investment losses and have questions about your legal rights, contact Harold Geller at hgeller@sotos.ca or 416.863.5603, or Matthew W. Taylor at mtaylor@sotos.ca or 416.572.7315.

The post Unauthorized Investment Account Trades: Harold Geller Comments in The Globe and Mail appeared first on Sotos LLP.

The revised proposal narrows the scope of the licensing framework after concerns that the earlier approach cast too wide a net. Harold described the amendments as a step forward but identified several consumer-protection concerns that remain unresolved.

In particular, Harold noted the conflict created when MGAs are expected to oversee agents while earning a percentage of those agents’ commissions. He also called for MGAs to be required to carry errors and omissions insurance and for greater clarity regarding the respective responsibilities of insurers and MGAs, including agent training requirements.

Harold also emphasized that principles-based regulation must include prescriptive elements so regulated parties understand what is required of them.

The Ontario Ministry of Finance is accepting comments on the proposal until August 17, 2026.

Read the Globe and Mail article here.

Review the proposal and submit comments here.

The post Harold Geller Quoted in The Globe and Mail on Ontario’s Proposed Regulation of Life and Health MGAs appeared first on Sotos LLP.

Allan Dick is quoted by the Canadian Lawyer on this matter:

https://www.canadianlawyermag.com/news/opinion/is-the-maple-leaf-foods-case-hysteria-over-listeria/306133

The post Allan Dick weighs in on the duty of care appeared first on Sotos LLP.