THE ISSUE OF CREDIBILITY IN INVESTOR LOSS LITIGATION

Abstract

Claims asserted by investors against their financial advisors and dealers seeking to recover investment losses frequently require an adjudication of the credibility of the parties. Given the personal nature of the relationships between retail investors and their financial advisors, the applicable regulatory and common law duties, and the intersect of consumer rights and commercial practices, it is not surprising that the issue of credibility permeates many of the issues central to investor loss claims. This study of 73 court cases across Canada in the period 2000-2011 analyzes issues arising in investor loss proceedings where credibility factors have come into play, and makes recommendations regarding dispute resolution of investor loss claims in light of the conclusions of the study.