Foster’s Family Office Group considers itself tasked with helping shepherd client wealth to the next generations, so we are delighted by the Trusted Contact Person (TCP) initiative, launched by Canadian financial regulators.
This initiative allows investors to nominate a person they trust to be contacted by their financial advisor or when there are concerns about potential financial exploitation or the investor’s cognitive abilities are in question. This contact person is not authorized to make financial decisions on behalf of the investor but serves as a safeguard, allowing for a proactive response to signs of abuse or cognitive decline.
Firms are encouraged to incorporate the TCP option into their account opening and review processes. Clients designate someone they trust implicitly, understanding that this individual may be contacted in specific, concerning situations. This approach respects the client’s autonomy while providing a practical mechanism for intervention when necessary.
The TCP initiative operates within a framework that respects privacy and consent. Financial institutions must secure explicit consent from clients to designate a TCP and define the scope of contact. This careful balance ensures effectiveness while upholding the highest standards of privacy and ethical conduct.
In keeping with our commitment to the well-being and security of our clients, we will be incorporating the Trusted Contact Person document in all our future account opening and account review materials.
If you agree that appointing a TCP is a great idea for you, and you have not done so already, please contact your Foster & Associates advisor today.
Disclaimer: This article is for general information purposes only, and is not legal, financial, or tax planning advice. Everyone’s situation is unique, and this article cannot apply to every person. The reader should not take any action, or refrain from taking any action, as a result of this article without first obtaining legal or professional advice.
