Financial Consumer Protection Framework Regulations

Title

Financial Consumer Protection Framework Regulations

Enabling Act: Bank Act

Description

The proposed regulatory amendments consolidate and streamline 23 sets of existing regulations to create a comprehensive set of financial consumer protection rules in one regulation.

These amendments will also allow the new Financial Consumer Protection Framework (Framework) to come into force. Budget Implementation Act 2018, No. 2 included legislative amendments to the Bank Act to introduce the new Framework to further advance consumers’ rights and interests when dealing with their banks.

Regulatory Cooperation Efforts (Domestic and International)

The proposed regulatory amendments, together with the new Framework, will establish a comprehensive set of federal rules applying to banks and authorized foreign banks when they deal with their customers and the public, that co-exist with provincial rules. Many provinces have established general consumer protection rules that apply to all products or contracts.

Provinces and territories have been consulted on the proposed regulatory amendments, including through the Consumer Measures Committee, a federal-provincial-territorial forum that works on harmonizing laws, regulations and practices, as well as raising public awareness on consumer protection issues. The proposed amendments are complementary to provincial consumer protection laws that generally apply to all parts of the economy. Consumers would continue to benefit from all provincial protections, while gaining new bank-specific protections under federal law.

Potential Impacts on Canadians, including Businesses

The proposed regulatory amendments will advance consumers’ rights and interests when dealing with their banks and will provide a more consistent and coherent set of rules that is easier for stakeholders, including consumers, to understand and use. The proposed regulatory amendments will provide important clarity to banks to guide their operations.

Consultations

In developing the proposed regulatory amendments, Finance Canada has consulted with targeted key stakeholders, including consumer groups, industry, and provincial and territorial counterparts.

Departmental Contact Information

Erin O’Brien
Director General, Financial Services Division
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin St.
Ottawa, Ontario K1A 0G5
Email: erin.obrien@fin.gc.ca

Date Regulatory Initiative First Included in Forward Regulatory Plan: July 2020