The next time you visit your financial advisor, you may be asked to provide the name of a trusted contact person.
What is a trusted contact person?
A Trusted Contact Person (TCP) is someone you trust that you can authorize your advisor to contact if there are concerns about you or if there is suspicion that you may be experiencing financial exploitation. Think of your TCP as an emergency contact person. It should be someone you can rely upon and be concerned about your best interests. The person you name will have no control over your financial assets.
What does a TCP do?
Advisors will not typically contact a TCP unless there is a cause for concern, which may include suspected diminishing mental capacity, or simply because there has been no response from you after multiple attempts at contact. The TCP will give guidance to the advisor and may even talk to you about the concerns. It might be a difficult conversation.
Do you have to have a TCP?
You do not have to name a TCP, but your advisor is required to ask and record your response. You can change your TCP at any time and can have more than one.
It is always good practice to let your TCP know that you would like them to perform that role for you. This way they will not be surprised if they are contacted by your advisor. It also gives that person the opportunity to decline if they are uncomfortable with the role.
There is more information about the Trusted Contact Person and financial abuse at the Canadian Securities Administrator’s website.
Of course, if you have any questions or are looking for ways to ask someone to be your trusted contact person, feel free to reach out.
Thanks! Chris