Nature of complaints

A “complaint” means any statement, written or verbal, of a customer or any person acting on behalf of a customer alleging a grievance involving the activities of Bastion Asset Management Inc. / Gestion d’actifs Bastion Inc. (BAM) or its employees in connection with the solicitation or execution of any transaction or the disposition of securities or funds of that customer.

A “complaint” encompasses any expression of dissatisfaction or reproach about a product or service offered by BAM, where the concern is raised by a member of the clientele and a final response is expected.

For greater certainty, the following are not considered to be “complaints”:

·       a request made for information or materials in respect of an offered product or service;

·       a request for access or rectification made in accordance with the Act respecting the protection of personal information in the private sector;

·       a request for correction of a clerical error or mistake in calculation, unless further action must be taken to address the consequences of the error or mistake for the person making the request, a member of the clientele, or any other person concerned by a record; and

·       a communication of a comment or feedback.

All complaints, whether written or verbal received by any employee must be forwarded immediately to the Chief Compliance Officer.

Any allegations of wrongdoing (such as failure to follow instructions, fraud or negligence) or other non-compliance with the procedures of BAM’s Policies and Procedures Manual on the part of the employee or if an employee is of the view that the client may have a complaint, should be referred to the Chief Compliance Officer. It is recommended that once the employee has forwarded such matters on to the Chief Compliance Officer that he/she refrain from making any comments or providing any advice on the matter.

The Chief Compliance Officer must keep a Complaint Log related to all written or verbal complaints (date, client, issue, status, etc.) A review of the Complaint Log will be part of every compliance audit.

Complaint handling procedures

General

When the Chief Compliance Officer receives a complaint, it is this person’s responsibility to review and investigate such complaint. The Chief Compliance Officer must, in a timely manner, acknowledge in writing to the complainant that the complaint has been received and is being investigated. After the investigation, the Chief Compliance Officer must respond to the complainant with the results of the investigation.

The nature of the complaint will determine the course and extent of the investigation. In general, the Chief Compliance Officer will review the complaint and seek such additional documentation or information as he deems necessary to fully investigate the complaint and determine how best to resolve the complaint.

Procedure for Addressing Complaints

a.      Receiving the Complaint

If a complaint has been received, whether in writing or verbally, BAM will respond to the complaint in writing within ten (10) calendar days. BAM’s initial letter may be a resolution of the complaint, or it may simply be an acknowledgement of the complaint and a promise to respond further after an investigation is conducted. In any case, the initial letter must contain the following information:

·       the complaint record identification code;

·       the date on which the complaint was received by BAM, if different than the date on which the complaint was registered;

·       the means by which the complainant may obtain information about the processing of the complaint;

·       the expected timeframe for processing the complain and the date before which the final response must be provided to the complainant; and

·       a hypertext link providing access to the summary of the complaint processing and dispute resolution policy, or a copy of such summary.

In the initial letter BAM will inform the client that it will respond within 60 calendar days.

In this letter, BAM will also inform the client that is can pursue other avenues of dispute resolution, including filing a complaint with the securities regulators or pursuing a remedy in the civil courts.

b.     Review by UDP

All complaints will be reviewed by the UDP. If the UDP is the subject of the complaint, the complaint will be referred to an independent party. BAM’s UDP will discuss the complaint with its with external legal counsel, if necessary. BAM will arrive at a decision regarding any action or inaction that it will take or not take with regards to the complaint.

c.      Decision on the complaint

Within 60 calendar days from the date that the complaint is initially received by BAM, BAM will render a decision that will take the form of a final response. Our final response can take one of three forms:

                        i.         offer the client what they are asking for (e.g., correct a situation, provide a refund, apologize, etc.); or

                       ii.         propose a solution that gives the client some of what they are asking for or offer an alternative solution: we try to seek common ground; or

                     iii.         reject the client’s complaint if our analysis shows that the complaint has no merit or cannot be resolved.

In our response to the client, we explain how we analyzed the complaint and what led to our response and the proposed solution to the complaint. The client is also reminded of their right to request to have their complaint record examined by the AMF.

Communications with the client do not end when we provide our response. If the client contacts us, we continue to respond by, among other things, answering their questions, following up on their comments or allowing them to submit new facts that are relevant to the processing of their complaint.

d.     Extension of the period for providing our response

The person analyzing the complaint may find that the complaint is taking more time or is more complex to process than anticipated and may therefore determine that additional time is required for the analysis. The additional time may not exceed 30 days.

An extension of time may be warranted where:

                        i.         Circumstances beyond our control delay the processing of the complaint, (e.g., when documents, such as statements or reports, need to be obtained from a third party in order to analyze the complaint); or

                       ii.         Exceptional circumstances arise that warrant an extension of the complaint analysis period (e.g., when we experience a sharp increase in our complaint volume following a natural disaster).

In such an event, the person analyzing the complaint will notify the client in writing on or before the date the response was expected to be provided to them.

Maintenance of Complaints Records

BAM shall keep and preserve in each office, either a separate file of all written complaints of customers and action taken by BAM, if any, or a separate record of such complaints and a clear reference to the files containing the correspondence connected with such complaint as maintained in such office.

The file must include:

a.      identification of the complaint;

b.     the date the complaint was received;

c.      identification of the employee who took the complaint;

d.     a general description of the matter complained of; and

e.      a record of what action, if any, taken with respect to the complaint.

In addition, the following records relating to complaints must be retained for a period of seven (7) years from the date of the complaint:

a.      the complaint;

a.      a copy of the acknowledgement of receipt sent to the complainant;

b.     any document or information used in analyzing the complaint;

c.      if an offer to resolve the complaint was provided to the complainant, a copy of the offer;

d.     a copy of the final response provided to the complainant as well as of any further exchanges with the complainant;

e.      if the complaint involved more than one financial institution or intermediary and, as required by regulations, a notice to that effect was sent to the complainant explaining the extent to which the complaint involves such institutions or intermediaries, a copy of the notice;

f.      if, where warranted by exceptional circumstances or circumstances beyond its control, BAM expected its final response to be provided later than on the 60th day following receipt of the complaint (but no later than on the 90th day), a copy of the notice required to be sent and which presents such exceptional circumstances, the date by which a final response must be communicated and a statement of the complainant’s right to request to have the complaint record examined by the AMF as well as an explanation of how to make such a request;

g.     a copy of the notice required to be sent to the complainant if the complaint cannot be resolved to the satisfaction of the complainant within 20 days following the recdeipt of the complaint; and

h.     any exchanges, or a summary of the exchanges, with the complainant.

Client complaints arising in Québec  

With respect to any client complaint from a client resident in Québec, BAM complies with sections 168.1.1 to 168.1.8 of the Securities Act (Québec) (the QSA) and will thereby be deemed to comply with the requirements of NI 31-103.

BAM will provide an equitable resolution of complaints filed with it. To that end, BAM will:

a.      follow the Procedure for Addressing Complaints, as stated above, in order to reach a resolution of disputes pertaining to a product or service BAM has provided;

b.     keep a complaints records register, as indicated above; and

c.      make a summary of the Complaints Policy, including (i) the characteristics that make a communication to BAM Personnel a complaint that must be registered in the Complaints Records, and (ii) the fact that a record following prescribed rules must be opened for each complaint, available its clients, as required by section 168.1.2,  paragraph 2 of the QSA.

BAM must submit a complaint report to the Autorité des marchés financiers (AMF) using the Complaint Report tool, which is accessible via AMF E-Services for businesses, if, during the latest calendar year:

·       one or more complaints were received; or

·       previously reported complaints were not resolved.

The reporting period is from March 1 to May 1 of the following year.

BAM shall inform each complainant, in writing and without delay, that a complainant may, if he is dissatisfied with the complaint examination procedure or its outcome, request BAM to forward a copy of the complaint file to the AMF. Where requested by a complainant, BAM shall forward a copy of the complaint file to the AMF.

The AMF shall examine the complaint and may, if it considers it appropriate, act as a mediator if the parties agree, pursuant to section 168.1.5 of the QSA.

Client complaints arising outside of Québec (OSBI)

The Firm is a participating member of the Ombudsman for Banking Services and Investments (OBSI), which is an independent resolution service for resolving investor disputes outside of Québec. If a complaint from a client of the Firm is not resolved within (60) days (or, under exceptional circumstances, as discussed above, within 90 days), of if the complainant is not satisfied with the Firm’s resolution of the issue within 180 days of receiving such resolution, the complainant can request that the OBSI mediate the complaint, provided the amount claimed is $350,000 or less and relates to a trading and/or an advisory activity conducted by the Firm for the client within the last six (6) years of the complainant first knowing or reasonably ought to have known of an act or omission that is a cause of or contributed to the complaint.

Filing a Complaint with OBSI

You may be eligible for OBSI’s free and independent dispute resolution service if:

·       we do not provide our decision within 60 days (or, under exceptional circumstances, as discussed above, within 90 days) after you made your complaint, or

·       you are not satisfied with our decision

Contact OBSI

Email: ombudsman@obsi.ca

Telephone: 1-888-451-4519 or 416-287-2877 in Toronto

OBSI can recommend compensation of up to $350,000.

OBSI’s service is available to Canadian Clients located outside of Québec. This does not restrict your ability to take a complaint to a dispute resolution service of your choosing at your own expense, or to bring an action in court. Keep in mind there are time limits for taking legal action.

Who can use OBSI

You have the right to use OBSI’s service if:

·       your complaint relates to a trading or advising activity of our firm or by one of our representatives,

·       you brought your complaint to us within 6 years from the time that you first knew, or ought to have known,

·       about the event that caused the complaint, and

·       you file your complaint with OBSI according to its time limits below.

Time limits apply

If we do not provide you with our decision within 60 days (or, under exceptional circumstances, as discussed above, within 90 days), you can take your complaint to OBSI any time after the 60-day or 90-day period, as applicable, has ended.

If you are not satisfied with our decision, you have up to 180 days after we provide you with our decision to take your complaint to OBSI.

OBSI will investigate

OBSI works confidentially and in an informal manner. It is not like going to court, and you do not need a lawyer.  During its investigation, OBSI may interview you and representatives of our firm. We are required to cooperate in OBSI’s investigations.

Information OBSI needs to help you

OBSI can help you best if you promptly provide all relevant information, including:

·       your name and contact information

·       our firm’s name and contact information

·       the names and contact information of any of our representatives who have been involved in your complaint

·       details of your complaint

·       all relevant documents, including any correspondence and notes of discussions with us

OBSI will provide its recommendations

Once OBSI has completed its investigation, it will provide its recommendations to you and us. OBSI’s recommendations are not binding on you or us. OBSI can recommend compensation of up to $350,000.  If your claim is higher, you will have to agree to that limit on any compensation you seek through OBSI.  If you want to recover more than $350,000, you may want to consider another option, such as legal action, to resolve your complaint.

For more information about OBSI, visit www.obsi.ca