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Complaints Management Policy

REGULATION RESPECTING THE HANDLING OF COMPLAINTS AND THE SETTLEMENT OF DISPUTES IN THE FINANCIAL SECTOR

Credit Assessment Agents Act (chapter A-8.2, ss. 38, 66 and 73)
Insurers Act (chapter A-32.1, ss. 485 para. 1 and 496)
Financial Services Cooperatives Act (chapter C-67.3, ss. 601.1 and 601.9)
Distribution of Financial Products and Services Act (chapter D-9.2, s. 216.1, s. 223 paras. 8, 11, 12 and 13.1)
Deposit Institutions and Deposit Protection Act (chapter I-13.2.2, s. 43 para. (u) and s. 45.9)
Derivatives Act (chapter I-14.01, s. 175 paras. 13, 16, 19.1 and 29)
Trust Companies and Savings Companies Act (chapter S-29.02, ss. 277 and 286)
Securities Act (chapter V-1.1, s. 331.1 paras. 8, 11, 26 and 27.0.4)

CHAPTER I – PURPOSE, SCOPE AND INTERPRETATION

This Regulation aims to ensure the fair handling of consumer complaints in the financial sector. It sets out the elements that must be included in the policy on complaint handling and dispute resolution adopted, as the case may be, under: paragraph 3 of the second paragraph of section 35 of the Credit Assessment Agents Act (chapter A-8.2); paragraph 2 of the second paragraph of section 50 of the Insurers Act (chapter A-32.1); paragraph 2 of the second paragraph of section 66.1 of the Financial Services Cooperatives Act (chapter C-67.3); paragraph 1 of the first paragraph of section 103 of the Distribution of Financial Products and Services Act (chapter D-9.2); paragraph 2 of the second paragraph of section 28.11 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2); paragraph 1 of the first paragraph of section 74 of the Derivatives Act (chapter I-14.01); paragraph 2 of the second paragraph of section 34 of the Trust Companies and Savings Companies Act (chapter S-29.02); or paragraph 1 of the first paragraph of section 168.1.1 of the Securities Act (chapter V-1.1).

This Regulation also establishes rules concerning practices for handling complaints.

A.M. 2024-01, s. 1.

This Regulation applies, with the necessary adaptations, to persons and firms registered as a firm, an independent partnership or an independent representative under the Distribution of Financial Products and Services Act, and to persons registered as dealers or advisers under the Derivatives Act or the Securities Act.

It also applies—except for the provisions of Chapter II—to credit assessment agents designated under the Credit Assessment Agents Act, to authorized insurers under the Insurers Act, to financial services cooperatives within the meaning of the Financial Services Cooperatives Act, to authorized deposit institutions under the Deposit Institutions and Deposit Protection Act, and to authorized trust companies under the Trust Companies and Savings Companies Act.

A.M. 2024-01, s. 2.

For the purposes of this Regulation, a “complaint” means any reproach or dissatisfaction with respect to a service or product offered by a financial institution or financial intermediary, communicated to it by a person in its clientele and for which a final response is expected.

The same applies to the practices of a credit assessment agent when the reproach or dissatisfaction is communicated by a concerned person about whom the agent holds a file.

A final response is deemed expected when the complainant’s communication, expressly or implicitly, indicates that measures must be taken to remedy the situation.

The following requests and communications are not considered complaints:

  1. a request for information or documents regarding a product or service offered;

  2. a request for access to or rectification of personal information under the Act Respecting the Protection of Personal Information in the Private Sector (chapter P-39.1);

  3. a claim for indemnity or other insurance claim;

  4. a request to correct a calculation or clerical error;

  5. the communication of a comment or feedback.

Despite paragraph 4 above, any request to correct a calculation or clerical error constitutes a complaint where additional measures must be taken to remedy the consequences of that error for the requester or, in the case of a financial institution or intermediary, for any other client; or, for a credit assessment agent, for any other concerned person about whom it holds a file.

A.M. 2024-01, s. 3.

For the purposes of this Regulation:

A.M. 2024-01, s. 4.

CHAPTER II – COMPLAINT-HANDLING AND DISPUTE-RESOLUTION POLICY

A financial intermediary must adopt a complaint-handling and dispute-resolution policy detailing how complaints it receives are handled, notably for receipt, assignment, analysis, communication of the final response, and any settlement offer.

Complaint handling must:

  1. be objective and take the complainant’s interests into account;

  2. remain simple and free of charge for the complainant.

A.M. 2024-01, s. 5.

The policy must set out measures to ensure its implementation, dissemination and compliance within the organization, including designating a complaint-handling officer with the authority and skills necessary to perform the role.

A.M. 2024-01, s. 6.

The policy must provide measures to adequately assist the complainant throughout the process and to inform them, in a timely manner, of the status of their complaint.

A.M. 2024-01, s. 7.

The policy must define how complaints are assigned to complaint-handling staff under the functional supervision of the complaint-handling officer and who have the skills required. For complaints covered by Section IV of Chapter III, it must also provide for assigning such complaints to other staff with the necessary skills when they are not assigned under the officer’s functional supervision. It must also ensure staff have access at all times to information essential to handling complaints.

A.M. 2024-01, s. 8.

The policy must require periodic reporting to the intermediary’s officers on:

  1. the number of complaints received and handled, and their common causes;

  2. the outcomes of complaint handling;

  3. issues related to implementation, dissemination and compliance with the policy;

  4. issues identified through analysis of common causes.

A.M. 2024-01, s. 9.

The policy must provide measures to develop an overall view of complaints received, notably to identify common causes and resolve the issues they raise.

A.M. 2024-01, s. 10.

CHAPTER III – RULES AND PRACTICES FOR HANDLING COMPLAINTS

Section I – General Provisions

Any informational document on complaint handling and dispute resolution must be drafted clearly, legibly, accurately and not misleadingly, highlighting the essentials for informed decision-making and avoiding confusion or deception. Staff must use clear, simple language in all interactions with complainants.

A.M. 2024-01, s. 11.

The institution/intermediary/credit assessment agent must take necessary measures to understand communications it receives and, where required, assist complainants in formulating them.

A.M. 2024-01, s. 12.

If, during analysis, the institution/intermediary/agent finds a complaint may affect other clients, it must take necessary measures to remedy the situation.

A.M. 2024-01, s. 13.

Complaints must be handled diligently. In particular, the institution/intermediary/agent must:

  1. properly document handling and create a complaint file per section 18;

  2. record the complaint in its complaints register and update it with the information required under section 20;

  3. send the acknowledgment of receipt under section 21 as provided in section 22;

  4. provide a final written response as soon as possible and no later than 60 days after receipt (s. 24);

  5. despite paragraph 4, in exceptional or uncontrollable circumstances, provide the final written response as soon as possible and no later than 90 days after receipt.

A.M. 2024-01, s. 14.

Where a settlement offer is made, a reasonable time must be granted for the complainant to assess and respond, including time to seek advice if desired. Upon agreement, the institution/intermediary/agent must implement it no later than 30 days after acceptance, or within any other period agreed when the complainant’s interest so justifies.

A.M. 2024-01, s. 15.

After sending the final response (s. 24) or the information under section 27, the institution/intermediary/agent must continue to manage additional exchanges—e.g., new relevant facts, questions, follow-up—until no further measures remain.

A.M. 2024-01, s. 16.

If a complaint involves multiple institutions/intermediaries/agents, the recipient must inform the complainant of the extent to which others are concerned, advise of the right to complain to them, and provide available contact information.

A.M. 2024-01, s. 17.

Section II – Complaint Files and Register

Each complaint file must contain at least:

  1. the complaint;

  2. a copy of the acknowledgment of receipt (s. 21);

  3. all documents/information used in analysis;

  4. where applicable, copies of documents/information provided under sections 15–17;

  5. where applicable, a copy of the written notice under section 23;

  6. where applicable, a copy of the written notice under section 28;

  7. a copy of the final response sent to the complainant;

  8. all exchanges with the complainant or a summary thereof.

Files must be kept up to date and organized so contents are precise and understandable to any person with access.

A.M. 2024-01, s. 18.

The institution/intermediary/agent must keep the complaint file for the same retention period as applies to information concerning the complainant.

A.M. 2024-01, s. 19.

Complaints must be recorded without delay in the complaints register and, as information becomes available, include what is needed to meet sections 9 and 10 or equivalent expectations in the Guideline on Sound Commercial Practices or the applicable Credit Assessment Agents Guideline established by the Autorité des marchés financiers (the Authority).

A.M. 2024-01, s. 20.

Section III – Communications to the Complainant

For this Regulation, the acknowledgment of receipt constitutes notice of the date the complaint is entered in the register, sent to the complainant under the relevant provisions of the Acts listed (A-8.2, A-32.1, C-67.3, D-9.2, I-13.2.2, I-14.01, S-29.02, V-1.1).

A.M. 2024-01, s. 21.

The acknowledgment (in writing) must, in addition to mentioning the complainant’s right to request that the Authority—or, where applicable, a federation—review the complaint file, include:

  1. the complaint file identification code;

  2. the date the complaint was received, if different from the register entry date;

  3. how to obtain information on complaint handling;

  4. the anticipated processing time and the deadline for the final response;

  5. a hyperlink to, or a copy of, the summary of the complaint-handling and dispute-resolution policy.

(First paragraph does not apply to complaints under Section IV.)

A.M. 2024-01, s. 22.

Where section 14(2)(5) applies (extension to 90 days), the institution/intermediary/agent must, as soon as possible and no later than 60 days after receipt, send a written notice stating:

  1. the circumstances justifying the extension;

  2. the new deadline for the final response;

  3. the right to request that the Authority—or, where applicable, a federation—review the file and how to do so.

A.M. 2024-01, s. 23.

The final response must include:

  1. a statement that it is the final response;

  2. a summary of the complaint;

  3. the reasoned conclusion of the analysis and the outcome;

  4. the right to request review by the Authority—or, where applicable, a federation—and how;

  5. if a settlement offer is made, the time limit to accept;

  6. the business contact details and signature of the person who handled the complaint.

A.M. 2024-01, s. 24.

Section IV – Handling of Certain Complaints

This section applies to complaints for which the information in section 27 may be communicated within 20 days of receipt if the complaint is resolved to the complainant’s satisfaction (acceptance of the offer or acquiescence to the outcome).

A.M. 2024-01, ss. 25–26.

Despite section 14(2)(4) and section 24, after analysis the institution/intermediary/agent may communicate, orally or in writing:

  1. the reasoned conclusion and outcome;

  2. if applicable, the deadline to accept any settlement offer.

A.M. 2024-01, s. 27.

If the complaint cannot be resolved to the complainant’s satisfaction, a written notice containing the items in section 22(1)–(5) must be sent no later than 20 days after receipt.

A.M. 2024-01, s. 28.

Despite section 18(1)(2), a summary document of what was communicated under the listed provisions and section 27 may be placed in the file.

A.M. 2024-01, s. 29.

CHAPTER IV – SUMMARY OF THE POLICY

The publicly available summary must include, among other things:

  1. how to submit a complaint and the possibility of assistance;

  2. the steps in complaint handling;

  3. a statement that a complaint may validly be made using the Authority’s complaint form, with a reference/link;

  4. how to obtain information on handling;

  5. the 60-day processing deadline (s. 14(2)(4));

  6. where applicable, the 90-day deadline and typical circumstances;

  7. the right to request review by the Authority—or, where applicable, a federation—and how.

A.M. 2024-01, s. 30.

When published on a website, the summary must appear in a location that is easy for clients—or, for credit assessment agents, concerned persons—to find.

A.M. 2024-01, s. 31.

CHAPTER V – TRANSMISSION TO THE AUTORITÉ DES MARCHÉS FINANCIERS

The institution/intermediary/agent must transmit the complaint file (as constituted under s. 18) to the Authority, in the manner set out on its website, within 15 days of receiving the complainant’s request for review by the Authority. It must also provide, no later than 10 days after the Authority’s request, the name and business contact details of the official contact person.

A.M. 2024-01, s. 32.

CHAPTER VI – PROHIBITIONS

The institution/intermediary/agent may not:

  1. when making a settlement offer, impose conditions aimed at:
    a) preventing the complainant from exercising the right to request review by the Authority or, where applicable, by a federation;
    b) requiring the complainant to withdraw any other complaint they have made;
    c) preventing communication with the Authority, a recognized self-regulatory organization under section 59 of the Act respecting the regulation of the financial sector (chapter E-6.1), or with the Chambre de la sécurité financière and the Chambre de l’assurance de dommages established under section 284 of the Distribution of Financial Products and Services Act;

  2. in any public representation or communication, use the term “ombudsman” or similar wording to designate the complaint-handling service or its personnel in a way that suggests they do not act on behalf of the institution/intermediary/agent.

A.M. 2024-01, s. 33.

CHAPTER VII – ADMINISTRATIVE MONETARY PENALTIES

A monetary penalty of $1,000 may be imposed for specified contraventions (e.g., incomplete file, failure to keep file updated, deficient acknowledgments, late notices, incomplete final response, late 20-day notice, missing summary in file, incomplete published policy summary, failure to provide official contact within 10 days).

A.M. 2024-01, s. 34.

A monetary penalty of $2,500 may be imposed for specified contraventions (e.g., failure to implement a settlement within 30 days or agreed time, failure to observe retention periods, failure to transmit file to the Authority within 15 days).

A.M. 2024-01, s. 35.

A monetary penalty of $5,000 may be imposed for specified contraventions (e.g., unlawful conditions restricting rights, misuse of “ombudsman,” failure to provide a final response within the required 60/90 days).

A.M. 2024-01, s. 36.

CHAPTER VIII – MISCELLANEOUS AND FINAL

An investment dealer or mutual fund dealer that is a member of the Canadian Investment Regulatory Organization is exempt from this Regulation for its Québec activities as such where it is subject to equivalent rules of that organization, and the rules are approved by the Authority under section 74 of the Act respecting the regulation of the financial sector.

A.M. 2024-01, s. 37.

This Regulation comes into force on July 1.

Complaint Receipt (Firm-Specific Procedures)

A consumer wishing to file a complaint must do so in writing to:

Gestion Phocus services financiers inc.
545 rue Saint-Georges, La Prairie, QC J5R 2N2
Tel: 450-G85-2G40
Fax: 450-G22-4701
steeve@gestionphocus.com

Anyone receiving a complaint must forward it immediately upon receipt to the person responsible for applying this policy. If a representative receives a written complaint at their office, it must be sent without delay to the Compliance Department of Gestion Phocus services financiers inc. The Chief Compliance Officer must acknowledge receipt within five (5) business days, indicating that the file will be reviewed within 90 days.

The acknowledgment must include at least:

Creation and Maintenance of the Register

A complaints register must be created for the purposes of this policy. Updating it is the responsibility of the person in charge, i.e., the Chief Compliance Officer at Gestion Phocus (Steeve McLean). Any complaint meeting the definition must be recorded in the register, including in particular: