Regulators need to do more to help financial advisors who want to protect their most vulnerable clients from being exploited or cheated, according to a joint report by the investor-advocacy organization FAIR Canada and the Canadian Centre for Elder Law (CCEL).
The report points to shortcomings in protection for vulnerable investors, most of whom are elderly, and who are subject to undue influence or have diminished mental capacity. The most common perpetrators are family members, friends and caregivers.
Through generic "case studies," the report cites six common types of abusers and scammers who prey on vulnerable investors. One of them is the new, younger "best friend" who insists she has a valid power of attorney and instructs the advisor to start selling the client's investments and cashing them out.
