TRUSTED CONTACT PERSON (TCP)

Canadians are living longer than ever before, and older Canadians are increasingly making up a greater proportion of the total population. As investors live longer, there is a greater need for targeted financial advice and strategies associated with aging.

Make clients aware of the importance of protecting their financial well-being.

Have a conversation with clients about the possibility that they may one day no longer be able to manage their finances on their own owing to temporary or permanent incapacity;  need another person’s help in managing some aspects of their finances; find themselves in a vulnerable situation or become a victim of financial mistreatment. 

Tell clients that there are things they can do to protect their financial well-being and prevent financial mistreatment.  Refer clients to publications or websites of agencies that can provide them with information on things they can do. The information sources listed in this section are good examples of such publications and websites.

HCI recognizes that older clients are a diverse group and that not all older clients are vulnerable or unable to protect their own interests. However, vulnerability can affect a client of any age, take many forms, and can be temporary, sporadic or permanent in nature. Vulnerability can be caused by a number of factors, including a physical, cognitive or psychological limitation, or an illness or injury.

What is a Trusted Contact?

A Trusted Contact is someone who is over the age of 18, is not typically the POA and who HCI can get in touch with in order to:

• Discuss activities or other possible red flags that might indicate your client is being financially exploited
• Confirm your client’s current contact information
• Confirm your client’s mental or physical health status
• Confirm the identity of any legal guardian, executor, trustee or holder of a power of attorney

A TCP should generally not be an individual who has an interest in the client’s account and should not be involved in making financial decisions with respect to the account, such as a POA.  Clients should be encouraged to name different individuals as their TCP and POA, however, it is recognized that this may not be possible for all clients.

A Trusted Contact Person is not a POA 

• Due to privacy, you cannot discuss or allow the TCP to view the particulars of a client’s accounts 
• The TCP does not have authority over the account, therefore, you cannot accept  instructions from the TCP
• Only the client can authorize, change or remove a TCP by completing the HCI Trusted Contact Person Form

Reporting concerns that may result in HCI contacting the TCP and other authorities

• Concerns over the well-being, mental capacity of your client or suspect physical, mental or financial abuse should be escalated to your Regional Compliance Officer, who will bring this to the attention of the Chief Compliance Officer (CCO), Ultimate Designate Person (UPD), or their alternates.
• The CCO. UDP or Director, Investment Division or their alternates are authorized to review the circumstances and take appropriate action to contact the TCP and/or other authorities such as the police or office of a public guardian or trustee if deemed necessary. HCI APs are not permitted to contact the TCP unless authorized to do so by HCI Compliance.


Temporary Holds

Under certain circumstances, HCI may opt to place a temporary hold on a transaction where there is a reasonable concern that financial exploitation of the senior or vulnerable client is taking place, or will take place, or a reasonable concern regarding the mental capacity of the client related to financial decision making.

The CCO, UPD and Director, Investment Compliance are authorized to: 

(1) place a temporary hold on a transaction on behalf of HCI;
(2) review, monitor or address the issues in relation to the hold; and 
(3) decide to complete or disallow the transaction subject to the temporary hold.

When HCI makes the decision to place a temporary hold, it will notify AP and the client, and where appropriate, contact the TCP and any parties authorized to transact on the account, such as a POA, as quickly as possible. HCI will maintain appropriate documentation and records in sufficient detail to evidence the following: 

(1) the reasonable concerns that prompted the temporary hold; 
(2) the review conducted; and 
(3) its conclusion.

The temporary hold should not last longer than necessary to address the concern and HCI will update the AP and the client as necessary.

Please access the Trusted Person Contact Form

Thank you for your prompt attention to this matter.

Cheryl Hamilton
Vice President Risk Management and Chief Compliance Officer