Ways a Trusted Contact Person (TCP) can protect your accounts
Posted :
Have you met with your advisor recently and wondered why you were asked to name a trusted contact person (TCP)?
The 3 scenarios below show why Canadian securities regulators introduced the TCP rule and how having a TCP can add an extra layer of protection to your account.
Scenario 1: Elder financial abuse
Edna and Dennis were an elderly couple whose estranged son, Steven was their sole beneficiary and power of attorney.
The couple were married for 65 years when Dennis died suddenly from heart failure. In her despair, Edna tried to take her own life.
Steven, as power of attorney, took control of her investment portfolios and made significant changes to the holdings. Within a month, he had also sold her house and put Edna in a nursing home.
Steven made it difficult for her financial advisor to speak with Edna and discuss the changes to her investment portfolios.
Scenario 2: Romance scam
Gisele was divorced twice and alone when she met Jay online. They got along well, chatting and texting frequently. Even though he was busy with his importing business, he made time for her.
One day, Jay called Gisele in a panic and said his products were stuck in customs. Could she wire him $30,000 until he could fix the issue with his credit card company?
Gisele asked her advisor to move the money out of her investment account into her bank account. After wiring $30,000 to Jay, he became unreachable.
Scenario 3: Mental incapacity
After working for 40 years straight, Eugene was intent on enjoying his retirement. He and his partner often filled their calendar with camping, golfing and cycling.
On one of these trips, Eugene fell off his bike, seriously injuring his spine. He was forced to stop all future activities and became increasingly depressed. His partner found Eugene difficult to live with and left. Having built up his savings throughout his life, Eugene decided he now wanted to spend it all. When he met with his financial advisor, Eugene appeared unkempt and was unable to answer some routine questions.
Still, he insisted on cashing out his entire portfolio.
How a trusted contact person could make a difference
The TCP is a resource person that the financial advisor can contact in specific situations.
If there’s suspicion of financial abuse or exploitation, a change in your health or behaviour, or a change in your ability to understand and make financial decisions, being able to reach out to your TCP would help your financial advisor better understand the situation.
Rest assured that your financial information will never be disclosed to your TCP.
Investing involves risks, including the potential loss of principal. Financial markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. The information provided does not take into account the suitability, investment objectives, financial situation, or particular needs of any specific person.
All overviews and commentary are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, investment or legal advice. Clients and prospects should seek professional advice for their particular situation. Neither Manulife Wealth and Asset Management, nor any of its affiliates or representatives (collectively “Manulife WAM”) is providing tax, investment or legal advice.
This material is intended for the exclusive use of recipients in jurisdictions who are allowed to receive the material under their applicable law. The opinions expressed are those of the author(s) and are subject to change without notice. Our investment teams may hold different views and make different investment decisions. These opinions may not necessarily reflect the views of Manulife WAM. The information and/or analysis contained in this material has been compiled or arrived at from sources believed to be reliable, but Manulife WAM does not make any representation as to their accuracy, correctness, usefulness, or completeness and does not accept liability for any loss arising from the use of the information and/or analysis contained. The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline, or other expectations, and is only current as of the date indicated. The information in this document, including statements concerning financial market trends, are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Manulife WAM disclaims any responsibility to update such information.
Manulife WAM shall not assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained here. This material was prepared solely for informational purposes, does not constitute a recommendation, professional advice, an offer or an invitation by or on behalf of Manulife WAM to any person to buy or sell any security or adopt any investment approach, and is no indication of trading intent in any fund or account managed by Manulife WAM. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Diversification or asset allocation doesn’t guarantee a profit or protect against the risk of loss in any market. Unless otherwise specified, all data is sourced from Manulife WAM. Past performance does not guarantee future results.
This material has not been reviewed by, and is not registered with, any securities or other regulatory authority, and may, where appropriate, be distributed by Manulife WAM and its subsidiaries and affiliates. Manulife WAM is the global investment, financial advice, and retirement plan services segment of Manulife Financial Corporation.
© 2025 by Manulife Wealth and Asset Management. All rights reserved. The statements and opinions expressed in this article are those of the author. Manulife WAM cannot guarantee the accuracy or completeness of any statements or data.