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ARTICLE · 25 JULY 2017

Investor's Claim For Lackluster Performance Of His Pref Share Strategy Fails

Borden Ladner Gervais LLP
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In Shinoff vs BMO Nesbitt Burns Inc. and Barbara Schwartz-Zukor, Justice France Dulude dismissed an investor's claim for $5.3M in alleged losses due to the defendants' alleged failure to properly....

CanadaLitigation, Mediation & Arbitration

In Shinoff vs BMO Nesbitt Burns Inc. and Barbara Schwartz-Zukor, Justice France Dulude dismissed an investor's claim for $5.3M in alleged losses due to the defendants' alleged failure to properly manage and monitor the investments, and particularly a significant preffered share portfolio of investments. After a lengthy review of the evidence, the Court concluded that the investment advisor fulfilled her obligation to know her client, and to provide adequate information and advice:

[253] In fact, it does not appear that, in the summer of 2006, BSZ provided him all the information needed on the advantages and disadvantages of holding Preferreds in comparison to other types of instruments, or that she explained in detail the strategy she intended to develop. As well, she did not quantify the risks associated with the recommended trades.

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