Canadian Lawyer InHouse

41 CANADIANLAWYERMAG.COM/INHOUSE SEPTEMBER/OCTOBER 2018 sonable efforts to protect the client," says Fish. However, he notes that these increased obligations are also taking place at a time when the wealth management sector is in - creasingly competitive and there could be significant reputational damage caused by a single advisor who does not follow rules or best practices. "You have to have the right system in place to pick up patterns and to reduce the number of files that might have to be escalated or brought to external coun - sel," says Fish. Negligent advice from an advisor, says Geller, is not only about the concern that it may attract the attention of a regulator. "The ability to sue the dealer is extremely easy. There is a high level of responsibility and reliance by the client," he adds. Social media also makes it very easy to share information and complaints. "A lot of our cases start with one client and go to 80," says Geller. According to Tamblyn Watts, even a well-meaning and diligent advisor may be in a difficult position when dealing with an older client. "How do I know if the person truly understands? Capacity is a legal test, not a medical one," she says. The elder law specialist was also involved in training material for advisors, includ - ing videos, put together for the Investment Funds Institute of Canada, which posted them online this summer as part of its vul- nerable investors resource centre. Elder- friendly practices, including client meet- ings, as well as explanations about capacity are included in the training content by the organization that acts on behalf of the coun- try's investment funds industry. The Investment Industry Association of Canada, which represents more than 120 IIROC-regulated dealer member firms, says ensuring that aging clients are treated fairly is a priority. "There is much more training at firms. There are inter-disciplinary teams. There is more focus on the advisor having a meaningful understanding about the needs of the client," says Michelle Alexander, vice president and corporate secretary of the organization. At the same time, "this is not a homoge - neous group," stresses Alexander, about the term older investors. In fact, those in the field say that there is not any specific age when a person fits that description because, just like any investor, there can be signifi - cant differences in risk tolerance, wealth, financial knowledge and other areas such as the use of technology. "Compliance costs are increasing, so we hope to have some flex - ibility to help manage these issues. There is no one size fits all," she says. Stereotypes about older investors such as the belief there is a reluctance to use tech - nology in this area — including services such as "robo advisors" — are also often in- correct, says Fish. "People wrongly assume that older people do not like electronic communications. In my experience, the op- posite is true," he suggests. "We need to use this technology. It is also a way to serve less well-to-do clients, at a price they can afford," he says. IH I n d u s t r y S p o t l i g h t © 2018 Thomson Reuters Canada Limited 00249PD-90991-NK INTRODUCING DATA PRIVACY ADVISOR. The only Q&A platform that answers your most pressing data privacy research questions. Only Data Privacy Advisor enables you to better understand data privacy complexities with unrivalled Practical Law™ know-how, global legal and regulatory content, and artificial intelligence from Thomson Reuters and IBM Watson.® Deepen your expertise and proceed more confidently. thomsonreuters.ca/data-privacy-advisor When data privacy authority falls on you, confidence matters.

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