"Canadian society is changing with the increase in vulnerable individuals, whether they are elderly or new Canadians who are not familiar with the knowledge and customs of Canadian commercial practice. Do you think businesses such as financial institutions should have procedures in place to detect factors suggesting that undue influence has affected these vulnerable customers? "

 

In your response, consider course materials, define relevant legal concepts, provide reasons for your opinion, and provide examples

 

Businesses should have procedures put in place to detect when undue influence is used to sway vulnerable customers and protect them in such situations. In Canada, these obligation are conferred to firms by The Canadian Securities Administrators provides practices that registered firms can consider when engaging with older or vulnerable clients through a staff notice CSA 31-354 published on June 21,2019. It further goes to define vulnerable clients as clients who become vulnerable due to changing needs and risks as they age, an illness or injury, or a physical, cognitive or psychological limitation .The Canadian Securities Administrators is an umbrella organization of Canada's provincial and territorial securities regulators whose mission is to give Canada a securities systems that protects investors from unfair, improper or fraudulent practices by developing a national securities system of harmonized securities regulation, policy and practice.