Osgoode Investor Protection Clinic and Living Lab
OUR PURPOSE
Osgoode’s Investor Protection Clinic and Living Lab (“IPC”), the first of its kind in Canada, provides pro-bono legal services to people who believe their investments were mishandled and cannot afford a lawyer. The IPC was founded by Osgoode Hall Law School in collaboration with FAIR Canada, a non-profit organization that champions the rights of individual investors in Canada through advocacy, education, and regulatory advancements.
The IPC has received seed and other funding from the Law Foundation of Ontario, two cy-prés awards, the Ontario Securities Commission (OSC), the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA) (now merged as Canadian Investment Regulatory Organization (CIRO)). The IPC also receives support from Osgoode alumni and in-kind contributions from our pro-bono partner law firms and experts. The IPC is grateful to these organizations and individuals for their generous support.
The IPC has three primary purposes:
LEGAL SERVICES
Provide legal advice to people
who believe they have suffered an
investment loss because of someone
else’s wrongdoing or negligence.
RESEARCH
Act as a “Living Lab,” collecting
and analyzing research data in an
anonymized way to inform public
policy.
EDUCATION AND ENGAGEMENT
Develop investor education initiatives and educational resources through community outreach.
2023 – 2024 AT A GLANCE
Legal Services
From May 1, 2023, to April 30, 2024, the IPC received a total of 44 inquiries, of which:
27
intake interviews were conducted.
13
new files were opened with 5 closed by April 30, 2024.
7
demand letters, 6 complaints to Ombudsman offices, 4 settlements with compensation, 1 complaint to the Ontario Securities Association (OSC), 1 complaint to United Kingdom Financial Conduct Authority (UKFA), and 1 small claims court.
Research
Key data points from the 27 intake interviews:
16 (59%)
involved clients who are 50 years old or older,
7 (25%)
involved unsuitable advice by registered representatives,
10 (36%)
involved fraud or scam, and
5 (18%)
involved do-it-yourself (DIY) investors.
The Living Lab is collecting and analyzing this and other data for research purposes.
Education and Engagement
Comment letter in favour of OBSI being given binding authority (February 28, 2024).
Comment letter on FSRA’s proposed approach to strengthening the protection of vulnerable consumers (March 5, 2024).
Video educating investors about the legal risks associated with engaging in DIY trading on OEO platforms (April 4, 2024).
Presentation by IPC student caseworkers and Professor Catellier to the CSA Advisory Panel entitled “A look at the Osgoode Investor Protection Clinic’s trends from May 1, 2022 to October 31, 2023” (December 2023).
Publication about the risks associated with the investing technique of “buying on margin”.
OUR WORK
Factors Considered in Selecting Files:
- Merits of an applicant’s complaint
- Whether a compliant fell within the scope of the IPC’s mandate
- Financial needs of an applicant
- Adequate evidence and record keeping of communication
- Expiration of the limitation period
- Learning opportunity for the student caseworkers
- IPC capacity
File Work Included:
- Submitting complaints to regulators and law enforcement
- Preparing demand letters to investment firms and other opposing parties
- Negotiating compensation for losses on OEO platforms
- Submitting complaints to OBSI, OLHI, and UKFCA
- Pursuing civil claims
- Assisting with settlements
- Determining the standard of care required for recommending an investment
- Educating clients on various complaint processes
- Investigating potential avenues for dispute resolution including alternatives to civil litigation
No one is immune from frauds and scams
Nearly half of the IPC’s 2023-2024 cases were frauds or scams and a majority involved college- or university-educated clients (73%) over the age of 50 (64%). “No one is immune from falling prey to a well-crafted scheme,” says IPC’s associate director Brigitte Catellier.
Fraudsters often present attractive, time-sensitive investment opportunities and pressure their victims to quickly invest large sums of money. In one IPC case, the client received a call from someone claiming to be an employee of a recognized Canadian financial institution.
Investors should call the financial institution directly and take the time to carefully consider the benefits and risks associated with an investment opportunity. “If it sounds too good to be true, it probably is,” says Catellier.
The IPC shared this message and data about the growing number of fraud cases at multiple presentations over the last year, where they also advocated for increased collaboration and enforcement strategies to help protect vulnerable retail investors.
CLIENT DATA AND DEMOGRAPHICS*
Gender
Employment Status
Age
Investment Knowledge
* See all Client Data and Demographics in the PDF Annual Report available below.
“My experience with the IPC has been a highlight of my law school career. I gained hands-on experience in seeking legal recourse for clients’ losses and harms, whether through Small Claims Court or direct communication with opposing counsel. The IPC provided valuable exposure to legal drafting, client communication, and a deeper understanding of Ontario’s judicial process. Moreover, I became more acutely aware of the challenges facing today’s investing public, including the rise of fraudulent investment schemes and the lack of investor education regarding emerging marketplace options like order-execution-only trading platforms. I am eager to apply the skills I have learned and honed at the IPC in my future legal practice.”
— Abilash (2023-2024 caseworker)