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CG-11 Branch closure meeting rules

From: Financial Consumer Agency of Canada

Notice

The new Financial Consumer Protection Framework (FCPF) in the Bank Act and the Financial Consumer Protection Framework Regulations (collectively: “FCPF Requirements”) come into force on June 30, 2022. The FCPF Requirements apply to banks, authorized foreign banks and federal credit unions. This guideline will be reviewed, including for purposes of reflecting the FCPF Requirements, and will be reissued in due course as is appropriate. Starting June 30, 2022, this guideline is to be read by banks, authorized foreign banks and federal credit unions in conjunction with, and subject to, the FCPF Requirements.  If there is any inconsistency between the FCPF Requirements and this guideline relating to banks, authorized foreign banks and federal credit unions and their conduct post June 30, 2022, the FCPF Requirements prevail.

Publication date: October 31, 2003
(Effective Date: December 2, 2009)

Pursuant to sub-section 459.2(3) of the Bank Act, the Commissioner may establish rules for convening a meeting and for its conduct.

The Commissioner considers the circumstances surrounding the branch closure or cessation of activities referred to in subsection 459.2(1) when requiring a meeting. Specific requirements relating to the date and conduct of the meeting will be communicated to the member bank upon requiring the meeting.

  1. Time, Location and Attendance
    1. The meeting must be held before the branch closes and within the timeframe established by the Commissioner in the decision letter requiring the member bank to convene a meeting;
    2. The meeting must be held in a publicly accessible building that provides access for the disabled and is in the vicinity of the closing branch;
    3. The meeting must be held during evening hours, during a weekend, or at an alternative time that is convenient for customers and allows for maximum community participation;
    4. All interested members of the community should be able to attend the meeting;
    5. Bank officials who are knowledgeable of, or responsible for, the closing of the branch must be in attendance.
  2. Notice
    1. If the branch is in an urban area, or in a rural area where there is a retail deposit-taking branch located within a traveling distance of 10km from the branch:
      1. The member bank must notify customers of the branch about the meeting in the manner specified and within the time frame established by the Commissioner in the decision letter requiring the member bank to convene a meeting;
      2. The member bank must include in the notice that there is a requirement to hold a meeting for the purpose of exchanging views about the closure or cessation of activities, the date and time of the meeting, and its location;
      3. The member bank must post a notice of the meeting in a conspicuous place in a public area of the branch with the information specified in the above-noted paragraph 2. a. ii. of these rules, immediately upon confirming the time and location of the meeting.
    2. If the branch is in a rural area and there is no retail deposit-taking branch located within a traveling distance of 10km from the branch;
      1. The member bank must notify customers of the branch about the meeting in the manner specified by and within the time frame established by the Commissioner in the decision letter requiring the member bank to convene a meeting;
      2. The member bank must notify the chairperson, mayor, warden, reeve, or other similar chief officer of the municipal or local government body in which the branch is located about the meeting in the manner specified by and within the time frame established by the Commissioner in the decision letter requiring the member bank to convene a meeting;
      3. The member bank must include in the notice that there is a requirement to hold a meeting for the purpose of exchanging views about the closure or cessation of activities, the date and time of the meeting, and its location;
      4. The member bank must post a notice of the meeting in a conspicuous place in a public area of the branch with the information specified in the above-noted paragraph 2. b. iii. of these rules, immediately upon confirming the time and location of the meeting;
      5. The member bank must publish a notice of the meeting in a newspaper in general circulation at or near the place where the branch is located with the information specified in the above-noted paragraph 2. b. iii. of these rules, immediately upon confirming the time and location of the meeting. 
  3. The conduct of the meeting is the responsibility of the member bank. Therefore:
    1. If applicable, the member bank must provide copies of the agenda and of any presentations to be made by the bank to customers;
    2. The member bank must introduce the key officials present including FCAC representatives and, if applicable, local community leaders;
    3. The member bank must provide adequate time for questions and comments from all participants;
    4. The meeting should be conducted in a manner that encourages a meaningful exchange of views between interested parties and Bank officials;
    5. All costs associated with the meeting should be borne by the bank;
    6. The member bank must take minutes that record:
      1. The names of the bank officials who attended;
      2. The estimated number of customers in attendance;
      3. Whenever possible, the names of any community groups that are present;
      4. The issues raised by the participants at the meeting and the responses provided by the bank.

For more information about branch closures, see FCAC's publication entitled What you should know if your branch closes. 

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