How to add an additional layer of protection by designating a Trusted Contact Person
It happens too often. A person meets someone online, and they become friends.
Then at some point, one asks the other for money and subsequently disappears. Or someone gets a phone call claiming to be on behalf of a relative, saying they’re in trouble and need cash right away. Victims of scenarios like these may most frequently be the elderly or vulnerable, but it can happen to anyone.
In order to protect Canadian investors, particularly the elderly or vulnerable, recent regulatory changes ask that financial advisors take reasonable steps to obtain the name and contact information of a trusted contact person from their client, someone who could be contacted if there were concerns about a client’s financial exploitation or diminished mental capacity.
What is a Trusted Contact Person (TCP)?
A TCP may be a close friend, family member or caregiver, who can be trusted to ensure that your interests come first. The TCP’s role is to provide or confirm information only. They do not have any authority over your account, cannot make decisions on your behalf, and will not be given access to your detailed account information. A TCP will not be asked for information unless it’s absolutely necessary. Refer below to see when TCPs would be contacted.
A Trusted Contact Person is not a Power of Attorney (POA), who can make financial decisions on your behalf. In fact, the TCP is someone an advisor could reach out to if he or she feels a power of attorney isn’t acting appropriately.
When is a Trusted Contact Person contacted?
The TCP could be contacted to confirm or make inquiries in any of the following circumstances:
- If there is suspicion that you are being financially exploited;
- If there is concern about your mental capacity as it relates to your ability to make financial decisions;
- To confirm your contact information if you are unreachable after repeated attempts and where failure to contact you would be unusual; or
- To confirm the name and contact information of a legal guardian, executor, trustee, an attorney under a power of attorney (POA) or any other legal representative.
Can you change your TCP?
Yes, you can change your TCP at any time by completing new documentation. If you subsequently name your TCP as a Power of Attorney or, it is recommended that you appoint a new TCP.
How do you set up a TCP?
At Educators Financial Group, we believe that naming a TCP adds an extra layer of protection to your account. You can name a TCP to an Educators account when you open a new account (as part of the application form) or any time afterwards by completing new documentation.
Still have questions about naming a Trusted Contact Person? Call on us.
When it comes to protecting your finances, it’s important to remain proactive. Regardless of where you are on the pay grid, or what your pension income is in retirement, we can offer you the financial peace of mind you need.
