Market losses are not compensable. Losses from unsuitable placement may be.
Title protection controls who may use a title. It is not a competence regime.
Securities work is regulated by the OSC and, for dealers, by CIRO.
Regulatory processes address conduct. Compensation generally comes from a civil claim or arbitration.
Quick Answer
Can I sue a financial advisor in Ontario for losses?
You can sue for losses caused by negligent or unsuitable advice, but not for losses that simply reflect market movement. The distinction is the whole case. Every investment carries risk, and an advisor who accurately explained a risk that then materialised has not been negligent. What is actionable is placing a client in something that never suited their circumstances, risk tolerance or objectives, or doing so without taking reasonable steps to find out what those were. The regulatory picture is layered and often misunderstood. Ontario’s Financial Professionals Title Protection Act, 2019 restricts who may call themselves a financial planner or financial advisor, but that is title protection, not competence regulation. Anyone advising or trading in securities is registered with the Ontario Securities Commission and, for dealers and their representatives, overseen by the Canadian Investment Regulatory Organization, which was formed in January 2023 from the amalgamation of IIROC and the MFDA.
Tell us briefly what is going on. A lawyer reviews every enquiry and replies within 2 business days.
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A lawyer replies within 2 business days. Urgent? Call +1 416 333 6200, answered 24/7. Submitting this form does not create a solicitor-client relationship.
THE THRESHOLD
Market Loss or Unsuitable Advice?
This is where most enquiries end, and it is better to reach the answer early. A portfolio that fell in a falling market is not a claim, however painful. Risk that was disclosed and materialised is not a claim either.
What is actionable is a mismatch: a retiree with a short horizon placed in concentrated, illiquid or speculative holdings; a conservative investor moved into leverage; a client whose stated objectives bear no relationship to what was actually bought. The loss in those cases is not the market. It is the gap between what should have been recommended and what was.
Assessing that gap usually means reconstructing what a suitable portfolio would have done over the same period and comparing. That is an expert exercise, and it is also the honest test of whether a claim is worth bringing, because sometimes a suitable portfolio would have lost money too.
KNOW YOUR CLIENT
The Obligation to Actually Ask
Know your client obligations require an advisor to understand a client’s financial circumstances, investment needs and objectives, risk profile and time horizon before recommending anything. Suitability is assessed against that information.
Claims frequently turn on the account opening documents, and specifically on whether the risk tolerance recorded there bears any resemblance to the client. Forms completed by the advisor and signed without discussion are common, and a risk tolerance of "high growth" recorded for a cautious seventy year old is the kind of document that decides a case.
The related failure is not updating. Circumstances change, and an assessment made at account opening and never revisited through retirement, illness or a change in income is a weak foundation for advice given years later.
WHO OVERSEES WHAT
Titles, the OSC and CIRO
Three regimes overlap here and conflating them causes real confusion. Ontario’s title protection framework, in force since 2022, restricts the use of the titles financial planner and financial advisor to those holding an approved credential. It governs what someone may call themselves.
Securities registration is separate and more substantive. A person advising on or trading in securities is registered under Ontario securities law, with the Ontario Securities Commission as the statutory regulator. CIRO, formed on 1 January 2023 from the amalgamation of IIROC and the MFDA, oversees investment dealers and mutual fund dealers and their representatives.
For a client, the practical point is that a complaint route exists, and it is not the same as a compensation route. Dealer complaint processes and, where available, ombudsman services can produce recommendations, but the enforceable remedy for a loss is generally a civil claim or, where the account agreement requires it, arbitration.
THE PRACTICALITIES
Documents, Timing and Proportionality
These claims live in the documents: the account opening forms, the know your client record, trade confirmations, statements and any written recommendations. Request the complete file early, because reconstructing years of activity from statements alone is slow and expensive.
Timing matters more than in most claims. The limitation clock runs from discovery, and in investment cases the argument about when a reasonable person ought to have known is unusually live, because statements arriving monthly can be said to have disclosed the problem long before the client understood it.
Proportionality matters too. Expert portfolio analysis is not cheap, and a claim needs to be large enough to carry it. That assessment is worth making at the outset rather than after the costs have been incurred.
Common Questions
Frequently Asked Questions
My investments lost money. Do I have a claim?
Not on that fact alone. Market losses are not compensable. A claim requires that the advice or placement was unsuitable for your circumstances, or that the advisor failed to take reasonable steps to establish what your circumstances were. The measure of loss is then the difference from a suitable portfolio, not the whole decline.
Does the title protection law mean my advisor was qualified?
It means they held an approved credential to use the title. Ontario’s Financial Professionals Title Protection Act, 2019 restricts use of the titles financial planner and financial advisor. It is not a general competence or conduct regime, and it does not replace securities registration.
Who regulates investment advisors in Ontario?
The Ontario Securities Commission is the statutory regulator. CIRO, formed on 1 January 2023 from the amalgamation of IIROC and the MFDA, oversees investment dealers and mutual fund dealers and their dealing representatives.
Will a complaint get my losses back?
A complaint addresses conduct. Some processes can result in a recommendation to compensate, but the enforceable route for a loss is normally a civil claim, or arbitration where the account agreement requires it. Do not let a complaint process consume the limitation period.
What documents should I gather?
The account opening and know your client forms, every statement, trade confirmations, and any written recommendations or emails. The know your client form is usually the single most important document, because suitability is measured against what it records.
Start My Enquiry
Discuss an Investment Loss Claim
The first question is always whether the loss came from the market or from the placement. Send the account opening documents and a few years of statements and we can usually tell you which.
Lexaltico LLP
Downtown Toronto
55 University Ave, Suite 1100 Toronto, ON M5J 2H7
North York
2 Sheppard Ave East, Suite 303, Toronto, ON M2N 5Y7
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Claims against professionals
Related pages
When the advice you paid for was wrong, and what the claim against that profession actually requires.
Use of this website does not establish a solicitor-client relationship between you and Lexaltico LLP. Such a relationship is only formed when Lexaltico LLP has expressly confirmed in writing that it has agreed to act on your behalf. Until that confirmation is provided, no obligation of confidentiality exists.
Not Legal Advice
Information on this website is provided for general informational purposes only and does not constitute legal advice. Do not act on any information here without first consulting a qualified lawyer licensed in your jurisdiction. Lexaltico LLP disclaims all liability for actions taken or not taken based on this website's contents.
Confidentiality of Enquiries
Do not submit confidential information through this website or by email until a solicitor-client relationship has been confirmed in writing. Information submitted before that point will not be treated as confidential.
Law Society of Ontario Regulation
Lexaltico LLP is regulated by the Law Society of Ontario (LSO) under the Law Society Act, R.S.O. 1990, c. L.8. All lawyers are members in good standing. Alberta matters are handled by lawyers licensed with the Law Society of Alberta (LSA).
Law Society of Alberta
Our Alberta-licensed lawyers are members in good standing of the Law Society of Alberta (LSA).
Immigration Regulatory Body: CICC
Immigration consulting services are provided by Regulated Canadian Immigration Consultants (RCICs) in good standing with the College of Immigration and Citizenship Consultants (CICC) under the College of Immigration and Citizenship Consultants Act, S.C. 2019, c. 29, s. 292.
Estimator & Calculator Tools
The Severance Estimator and Estate Dispute Evaluator are for informational purposes only. Results are estimates and do not account for specific contractual terms, statutory provisions, or judicial discretion. These tools do not create a solicitor-client relationship. Always seek independent legal advice before making any legal decision.
Privacy: PIPEDA and CASL
Your personal information is protected in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA), S.C. 2000, c. 5 and Canada's Anti-Spam Legislation (CASL). We do not sell your information. Withdraw consent at any time: hello@lexaltico.com.
Initial Assessment
The no-obligation initial assessment is a brief introductory conversation. It does not include a review of your documents and does not constitute legal advice. Lexaltico LLP charges a fee for substantive consultations, including civil litigation, criminal defence and immigration matters; the firm may waive that fee at its discretion. Any fee is disclosed in advance and credited in full toward your account if you retain the firm. Documents are reviewed and advice given only at a paid consultation or once the firm has been retained. No solicitor-client relationship arises, and no duty of confidentiality applies, until confirmed in writing.
Referral Fees: LexKonnect
Where we refer a matter to another firm, including through LexKonnect, we comply with Rule 3.6-6.1 of the Law Society of Ontario’s Rules of Professional Conduct. Any referral fee is set out in the Law Society’s standard referral agreement, signed by you before the referral proceeds, and no fee is payable to us unless and until the receiving firm has been paid for its work. You are never obliged to accept a referral and are free to retain any firm you choose. No referral arrangement affects the independent professional judgment of any lawyer at this firm.
Limitation Periods
Failure to commence proceedings within applicable limitation periods may permanently bar your claim. In Ontario, the general limitation period is two (2) years from discovery under the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B. Seek legal advice promptly.
If You Are in Danger
If you or a child are in immediate danger, call 911. This website is not an emergency service. Enquiries sent through this site are read during business hours and a reply may take up to 2 business days. Do not rely on this site, a form or an email if you need help now. The Assaulted Women’s Helpline (1-866-863-0511) and Talk4Healing (1-855-554-4325) operate around the clock.
Availability and Response Times
We aim to reply to enquiries within 2 business days. Contacting us does not guarantee a reply within any particular period, does not create any obligation on the firm to act, and does not stop, extend or satisfy any limitation period, filing date or court deadline that applies to your matter.
Our Telephone Line
Our line is answered 24 hours a day, every day of the year. Outside office hours calls are taken by our intake service, who record your details and pass them to the firm. A lawyer responds during the next business day, or sooner if the matter is urgent. Answering the telephone is not the same as giving legal advice: no advice is given on that call and no solicitor-client relationship arises from it. If you or a child are in immediate danger, call 911.
Reviews and Testimonials
Reviews shown on this site are written by third parties and published on platforms we do not control. Each describes one person’s experience of one matter. They are not a promise, a prediction or a guarantee about any other matter, and they should not be read as a statement about the quality of legal services generally. Every case turns on its own facts.
Links to Other Websites
This site links to regulators, courts, government sources, professional associations and social platforms. Those sites are operated by others. We do not control them, we are not responsible for their content or their accuracy, and a link is not an endorsement. Their privacy practices are their own, not ours.
Where Your Enquiry Information Goes
Information submitted through a form on this site is transmitted using third-party services in order to reach us by email, and may be processed or stored outside Canada, where it can be subject to the laws of that jurisdiction. By submitting a form you consent to that transfer. If you would rather not, telephone us on +1 416 333 6200 instead. We do not sell your information.
Accessibility
We aim to meet the Accessibility for Ontarians with Disabilities Act and WCAG 2.1 Level AA. If any part of this site prevents you from reaching us, telephone +1 416 333 6200 or email hello@lexaltico.com and we will provide the information in another format. Tell us what would work for you and we will arrange it at no charge.
Lawyers, Paralegals and Consultants
Not everyone at the firm is a lawyer. Licensed paralegals in Ontario may act only within the scope permitted by the Law Society of Ontario, which does not include most family, estate or criminal matters. Immigration consulting may be provided by Regulated Canadian Immigration Consultants, who are not lawyers. Each page and each biography states which applies. Ask us at the outset who will handle your matter and under which licence.
Languages
We serve clients in a number of languages. Every page of this site is written and published in English. Where a document, a summary or a conversation is provided in another language, the English version governs in the event of any difference. If you need an interpreter, tell us when you book and we will arrange one.
Lexaltico LLP
Legal Notices
How Lexaltico LLP handles personal information, under PIPEDA and Ontario law.
What we collect
What you give us
When you use a form on this site, email us or telephone us, we collect what you choose to send:
your name, email address, telephone number and a description of the situation. Nothing on this
site requires you to give more than that.
What is collected automatically
We collect non identifying technical information when you browse: IP address, browser type, pages
viewed and time spent. It is used to understand how the site is used and to improve it. It is not
used to identify you.
What we do not collect here
We do not collect sensitive personal information through this website. Detailed personal and legal
information is collected only after a solicitor client relationship exists, through the channels
set up for that purpose.
How we use it
Purpose
What you send is used to reply to you, to run a conflict check, to assess whether the firm can
assist, and, if a retainer follows, to carry out the work.
Marketing
We do not use your personal information for marketing without your express consent, and we
do not sell, rent or trade it. If you consent to receive anything from us, every message
carries a way to stop, as required by Canada’s Anti Spam Legislation.
Sharing and disclosure
Privilege
Information given to us in the course of a legal matter is protected by solicitor client
privilege. We do not disclose privileged information without your consent, except where the law or
a court order requires it.
Service providers
Non privileged contact information may be shared with the providers who help us run the firm and
this website, and with people engaged on your matter such as translators, agents and court
reporters. All of them are under confidentiality obligations.
Processing outside Canada
Information submitted through a form travels through third party services in order to reach us by
email, and may be processed or stored outside Canada, where it can be subject to
the laws of that place. Submitting a form is your consent to that transfer. If you would rather
not, telephone us instead.
Cookies and measurement
What is set, and when
This site uses cookies to understand how it is used. Advertising cookies are set only if you press
Accept. If you press Decline, measurement is switched off for you entirely, nothing further
is sent, and anything already stored on your device is cleared. The site works either
way.
You can change your answer at any time by clearing this site’s cookies in your browser, which
brings the question back.
Your rights, and how long we keep things
Your rights under PIPEDA
Under the Personal Information Protection and Electronic Documents Act,
S.C. 2000, c. 5 you may ask what personal information we hold about you, ask us to correct
anything inaccurate, and withdraw consent to our use of it, subject to legal and contractual
limits. We reply within thirty days or explain why we need longer.
Retention
Client files are kept for the period the law and the Law Society require, ordinarily
seven years after a matter closes, which reflects limitation periods and the
possibility of later proceedings. After that they are securely destroyed or anonymised. You may
ask for earlier deletion, subject to those obligations.
Enquiries that do not become files
If you contact us and no retainer follows, what you sent is retained only as long as our conflict
records require, then destroyed.
If you are not satisfied with our answer you may complain to the Office of the Privacy
Commissioner of Canada.
Short, and written to be read rather than scrolled past.
The four things that matter most
Nothing on this site is legal advice, however specific it looks.
Using the site or sending a form does not make us your lawyers.
Do not send confidential information before a retainer is signed.
Past results depend on their own facts and do not predict yours.
What this site is
Information, not advice
This site publishes several hundred pages about Ontario law. They are written carefully, they cite
statutes and cases by name, and they are reviewed. None of that makes them advice about your
matter. Law is applied to facts, and we do not know yours.
The difference is practical rather than technical. A page explaining that spousal support is
usually indefinite after a twenty year marriage is accurate as a general statement and may be
wrong about you, because of a domestic contract you signed, a period of separation you have
forgotten, or an income that is not what a tax return says it is.
Law also changes. Pages carry a review date where one is relevant. A page reviewed last year may
not reflect an amendment made since, and a page about a subject currently before an appellate
court may be overtaken between your reading it and your acting on it.
When we become your lawyers
Three things must happen first
A conflict check must be completed. We act for a great many people and
businesses, and we cannot act against a current client or use what we learned from a former one.
That check happens before anything else and occasionally means we have to decline.
We must confirm in writing that we are prepared to act. Not every matter is one we
can take, and saying so early is better than taking a file we cannot properly serve.
A retainer agreement must be signed. It sets out what we are doing, what we are
not doing, who is responsible for what, and how fees work. Until it is signed no relationship
exists, whatever has been discussed.
Confidentiality before a retainer
Why you should not send us documents yet
Information sent through a form, or by email, before a retainer is signed is not covered by
solicitor client privilege. That is not a policy we chose. It follows from there being no
solicitor client relationship for the privilege to attach to.
It can also create a problem for you. If you send us detailed information about a dispute and we
are later approached by the other side, what you sent may affect whether we can act for either of
you.
So tell us the shape of the problem and leave out the detail: the area of law, roughly when it
arose, and whether anything is urgent. That is enough for us to say whether we can help. The
documents come after the retainer.
Results, testimonials and reviews
What they do and do not tell you
Case results described anywhere on this site are real and are described accurately, and they are
specific to their own facts. A settlement at three times the original offer happened because of
that employer, that contract and that person’s history. It says nothing about what your
matter is worth.
Client reviews are the views of the people who wrote them. We do not offer anything in return for
a review, we do not write them, and we do not ask only the clients we expect to be positive.
Calculators on this site produce estimates from the figures you enter. They apply published
formulas and they cannot know about the facts that most often change the answer.
Copyright, links and governing law
Copyright
The content of this site belongs to Lexaltico LLP or its licensors. You are welcome to read it,
print it and quote it with attribution. You may not republish it as your own.
Links
We link to statutes, regulations, court decisions and government pages because a reader should be
able to check us. We do not control those sites and are not responsible for them, and a link is
not an endorsement.
Limitation of liability
To the fullest extent the law permits, Lexaltico LLP is not liable for any loss arising from your
use of, or reliance on, anything published on this website.
Governing law
These terms are governed by the law of Ontario and the federal law of Canada that applies in
Ontario. Lawyers and licensed professionals at the firm are regulated by the Law Society of
Ontario, and marketing on this site is intended to comply with the
Rules of Professional Conduct.
Every limit on what this website tells you, and every thing it does not do, in one
place rather than in small print at the bottom of each page.
Before you rely on anything here
Four limits, and they matter in this order.
Not legal advice
Everything published on this website is general information. It is not legal
advice, it does not take account of the facts of any particular situation, and reading it does not
create a solicitor client relationship. Do not act, or decide not to act, on anything here without
speaking to a lawyer licensed in your jurisdiction about your own circumstances.
Jurisdiction
These pages describe the law of Ontario, and of Alberta only
where a page says so expressly. They do not describe the law of any other province, territory or
country. Law that looks similar across jurisdictions frequently is not.
Currency of the law
Each page states the law as at the review date shown on it. Legislation is amended and case law
develops. A page accurate when written may no longer be.
Generality
These pages describe how a rule usually works. That is not the same as how it applies to your
facts. The exceptions are where most real matters live, and a page written for a general reader
cannot tell you whether you are inside a rule or inside its exception.
If you contact us
If you are in danger
If you or a child are in immediate danger, call 911.
This website is not an emergency service. Enquiries sent through a form here are read during
business hours and a reply may take up to 2 business days.
Using this website, submitting a form, sending an email or speaking to us on the telephone does
not make us your lawyers. That relationship arises only when the firm has
confirmed in writing that it has agreed to act, a conflict search has been completed, and a
retainer has been signed.
Confidentiality of enquiries
Do not send confidential or sensitive information through this website or by email until we have
confirmed in writing that we can act for you. Information sent before that point is
not treated as confidential and may prevent us from acting for you, or for
someone else, in a connected matter.
Response times
We aim to reply within 2 business days. Contacting us does not guarantee a reply within any
particular period, does not oblige the firm to act, and does not stop, extend or satisfy
any limitation period, filing date or court deadline.
Our telephone line
Our line is answered 24 hours a day, every day of the year. Outside office hours calls are taken
by our intake service, who record your details and pass them to the firm. A lawyer responds during
the next business day, or sooner if the matter is urgent. Answering the telephone is not the same
as giving legal advice, and no relationship arises from that call.
Who we are and how we are regulated
Law Society of Ontario
Lexaltico LLP is regulated by the Law Society of Ontario under the
Law Society Act, R.S.O. 1990, c. L.8. All lawyers practising in
Ontario through the firm are members in good standing.
Law Society of Alberta
Alberta matters are handled by lawyers licensed with, and in good standing with, the
Law Society of Alberta. A lawyer licensed in Ontario is not thereby licensed in
Alberta, and the reverse is also true.
Immigration regulation
Immigration consulting is provided by Regulated Canadian Immigration Consultants
in good standing with the College of Immigration and Citizenship Consultants under the
College of Immigration and Citizenship Consultants Act, S.C. 2019, c. 29,
s. 292.
Lawyers, paralegals and consultants
Not everyone at the firm is a lawyer.
Licensed paralegals in Ontario may act only within the scope the Law Society
permits, which does not include most family, estate or criminal matters.
Immigration consultants are regulated by the College, not by a law society,
and are not lawyers.
Law clerks and managers support files but do not give legal advice.
Each page and biography states which applies. Ask at the outset who will handle your matter and
under which licence.
Languages
We serve clients in thirteen languages. Every page of this website is written and published in
English. Where anything is provided in another language, the English
version governs in the event of a difference. If you need an interpreter, tell us when
you book and we will arrange one.
Fees
The initial assessment
The no-obligation initial assessment is a brief introductory
conversation. It does not include a review of your documents and does not constitute
legal advice.
The firm charges a fee for substantive consultations, including in civil litigation,
criminal defence and immigration matters. The firm may waive that fee at its discretion.
Any fee is disclosed in advance and credited in full toward your account if you retain the
firm.
Referral fees
Where we refer a matter to another firm, including through LexKonnect, we comply with Rule 3.6-6.1 of the Law Society of Ontario’s Rules of Professional Conduct. Any referral fee is set out in the Law Society’s standard referral agreement, signed by you before the referral proceeds, and no fee is payable to us unless and until the receiving firm has been paid for its work. You are never obliged to accept a referral and are free to retain any firm you choose. No referral arrangement affects the independent professional judgment of any lawyer at this firm.
What is published on this site
Calculators and estimators
They produce estimates from what you type and cannot know the rest. They do not
account for the terms of your contract, statutory exceptions, or the discretion a court will
apply. Do not make a decision on a number produced by a calculator.
Past results
Any outcome described happened on its own facts, before its own decision maker,
under the law as it stood at the time. Past results do not predict or guarantee the result of any
other case.
Reviews and testimonials
Reviews shown here are written by third parties and published on platforms we do not control. Each
describes one person’s experience of one matter. They are not a promise, a
prediction or a guarantee about any other matter.
Links to other websites
This site links to regulators, courts, government sources, professional associations and social
platforms, all operated by others. We do not control them, we are not responsible for
their content or accuracy, and a link is not an endorsement.
Other notices
Limitation periods
Failure to start a proceeding within the applicable limitation period may permanently bar
your claim. In Ontario the general period is two years from discovery
under the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B.
Shorter periods apply to many claims. Seek advice promptly. Nothing on this website extends a
limitation period.
Accessibility
We aim to meet the Accessibility for Ontarians with Disabilities Act
and WCAG 2.1 Level AA. If any part of this site prevents you from reaching us, telephone
+1 416 333 6200 or write to
hello@lexaltico.com and we will provide the information
in another format, at no charge.
