The Autorité des marchés financiers (AMF) is the organization mandated by the government of Quebec to oversee Quebec’s financial sector and to provide assistance to consumers of financial products and services.
On December 31, 2021, amendments to certain AMF rules came into force to enhance the protection of elderly and vulnerable clients. These amendments concern the designation of a trusted contact person and apply to the entire securities industry. Here’s what it is about.
In a nutshell
The trusted contact person is a resource person who knows you well and whom your advisor can contact, if necessary. It can be a member of your family, or someone outside your family circle.
During the annual meeting with your advisor or your portfolio manager in 2022, they will ask you to designate a trusted contact person and to provide their contact information, which will be entered in your file. You will either need to complete an fdp form or go to your Client Area on the fdp website and enter the information there.
Any new fdp client will also be asked this question and to provide the requested information, if applicable.
You can always change your choice later, if you wish. You also have the right to refuse to designate such a person, without any consequences.
What is the purpose of this measure?
The new regulation aims to better protect all investors. Its purpose is to identify a reliable resource in case you fall ill, become vulnerable, or are the subject of financial exploitation, a person from whom your advisor can obtain information about you if they are unable to contact you directly.
You should know, however, that your trusted contact person has no access to your file and your investment accounts: their role is strictly to provide your advisor with information about you if the need arises.
The right of access to your data and to your accounts must be legally entrusted to a mandatary, whom you designate in a notarized protection mandate. Hence the importance of taking the necessary steps to ensure your personal and financial security at every stage of your life.
Under the radar
Because different events can occur that can have significant consequences, the regulatory authorities have put in place tools to recognize certain situations that investors may find themselves in. These tools make it possible to detect signs of weakening mental capacities such as temporary memory loss or a significant concentration deficit, or signs of possible financial exploitation. Having a trusted contact person enables the advisor to inquire about the well-being of the investor concerned.
At any age, however, situations can arise that interrupt communication with your advisor, whether it’s an accident or a temporary health problem, or an unplanned trip. In all these situations, having designated a trusted contact person will allow your advisor to keep abreast of your situation, if need be. It’s a simple, non-invasive way to stay in touch with you and ensure that you and your assets are protected.
If you would like more information, your advisor is available to answer your questions.
Isabelle Primeau, LL B.
Chief Compliance Officer, Professionals’ Financial – Mutual Funds Inc.
