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.

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 or verbally 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.      Verbal Complaint

If the complaint has not been received in writing, BAM will attempt to resolve the complaint on an informal basis.

b.     Complaint in Writing

If the complaint has been received in writing, or if the complaint is not resolved after an initial attempt to resolve the complaint on an informal basis, BAM will respond to the complaint in writing within ten (10) business 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 the initial letter BAM will inform the client that it will respond within 60 calendar days.

In this letter, BAM will 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.

c.      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.

d.     Decision on the complaint

Within 60 calendar days from the date that the complaint is initially received by BAM, BAM will render a decision and will inform the complainant of its decision. The complainant will receive a letter from BAM setting out its decision, which will be that:

                        i.         the complaint has been dismissed, including the reasons; or

                       ii.         the complaint has been upheld, including the planned action; or

                     iii.         the complaint will require further investigation.

e.      Further Investigation

In the event the complaint requires further investigation, then BAM will, in a further letter to the client, set out a reasonable amount of time that it will require, after having considered all the relevant circumstances, to conduct such further investigation and render a decision regarding resolution of the complaint.

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. Records relating to complaints must be retained for a period of seven (7) years from the date of the complaint.

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.

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 will, on the dates determined by the Autorité des marchés financiers (the AMF), submit to the latter a report concerning the complaints received and the Complaints Policy established pursuant to section 168.1.1 of the QSA. The report shall mention, in particular, the number and nature of the complaints filed and the resolution, if applicable, of such complaints. The current obligation is to file with the AMF, twice a year, a complaints report via the Complaints Reporting System (CRS), accessible via the Internet, whether or not BAM has received any complaints:

·       no later than July 30, for data collected between January 1 and June 30;

·       no later than January 30, for data collected between July 1 and December 31.

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 (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 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 Clients of <@>. 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 90 days, you can take your complaint to OBSI any time after the 90-day period 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