The Canadian Securities Administrators has launched a consultation on more detailed proposals to support an independent dispute resolution service with binding authority for investment-related investor complaints, anticipated to be the Ombudsman for Banking Services and Investments (OBSI). The package covers a proposed CSA oversight model for OBSI and refinements to the review and decision stage of the complaints process. The oversight framework would be implemented through designation or recognition orders for OBSI and a memorandum of understanding among participating jurisdictions, including an OBSI Oversight Committee to coordinate joint supervision. Proposed expectations span governance and independence safeguards, regulator approval or non-objection for specified key documents and appointments, enhanced reporting and notification requirements, periodic CSA examinations (including sampling of recommendations and decisions without constituting an appeal), and independent third-party evaluations at least once every three years. On process design, the CSA proposes that where a party initiates the stage 2 review in relation to a stage 1 compensation recommendation of CAD 75,000 or more, OBSI would be required to appoint external decision maker(s) to conduct stage 2 and issue the final and binding decision; the external decision maker roster would be maintained by OBSI and approved by the CSA. The CSA is not proposing to change OBSI’s six-year limitation period but is inviting further comment, and notes that the framework would apply to OBSI’s investment mandate. Comments are due by September 15, 2025. Implementation of a final framework is contingent on enabling legislation being passed and brought into force in participating jurisdictions.

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