Consultation on Proposals to Strengthen Canada’s Financial Sector

Current Status: Open
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This consultation, open to all interested Canadians and stakeholders, launches a third phase of the review of Canada’s federal financial institutions statutes (the Bank Act, the Insurance Companies Act, and the Trust and Loan Companies Act) and related legislation and policies.

The first phase of the review, the Consultation on Upholding the Integrity of Canada’s Financial Sector, launched in October 2023, and the second phase, the Consultation on Strengthening Competition in the Financial Sector, launched in December 2023.

Building on feedback received in the first two phases of consultation, the Department of Finance Canada has identified a range of potential proposals that could be adopted in the Canadian financial sector framework to ensure that Canada’s financial system works for all Canadians.

As with previous financial sector legislative reviews, this consultation process aims to help the federally regulated financial sector evolve to meet needs of all Canadians, address new challenges, and seize emerging opportunities.

Key Topics for Consideration

The Department of Finance is seeking views on and considering the following measures, as detailed in the consultation paper:

Supporting a Competitive Market Structure and Expanding Consumer Choice

• Preventing consolidation among large banks;
• Strengthening the ministerial approval application process;
• Ensuring fair access to the distribution channel for brokered deposits;
• Facilitating the growth of federal credit unions; and,
• Leasing automobiles to retail consumers.

Enhancing Consumer Protections

• Preventing financial fraud;
• Increasing transparency and accountability for financial fraud;
• Supporting consumers when banks close branches;
• Enhancing bank reporting on branch networks and closures;
• Clarifying rules for opening deposit accounts outside of bank branches; and,
• Increasing the amount that is immediately accessible when depositing a cheque.

Modernizing the Financial Sector Framework

• Prohibiting or restricting interlocking directorates in the financial sector;
• Updating public holding requirement thresholds;
• A more transparent financial transactions application process; and,
• Updating statutory thresholds.

Adapting to Geopolitical Risks

• Enhancing the oversight of financial sector risks related to national security; and,
• Enhancing the Minister of Finance and the Superintendent of Financial Institutions’ compliance authorities.

Upholding World-Class Regulation

• Developing a strong and predictable regulatory framework; and,
• Advancing work on artificial intelligence.

Contact Us

Submissions for this consultation will be open until September 11, 2024.
Email us your comments and feedback at legreview-examenleg@fin.gc.ca with “Financial Institutions Statutes Review” in the subject line.
Comments and feedback may also be sent by mail to:

Director General
Financial Institutions Division
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin Street
Ottawa, ON K1A 0G5

Those providing comments are asked to clearly indicate the name of the individual or the organization that should be identified as having made the submission.

Who is the focus of this consultation?

Through this consultation, we want to hear from all interested Canadians, financial sector market participants, academics, and civil society groups.

Privacy

Information received through this comment process is subject to the Access to Information Act and the Privacy Act. Should you indicate that your comments, or any portions thereof, be considered confidential, the Department of Finance will make all reasonable efforts to protect this information.

In order to respect privacy and confidentiality, please advise when providing your comments whether you:

• Consent to the disclosure of your comments in whole or in part;
• Request that your identity and any personal identifiers be removed prior to publication; or,
• Wish that any portions of your comments be kept confidential (if so, clearly identify the confidential portions).

The information you provide may be shared with other relevant federal agencies, such as:

• The Office of the Superintendent of Financial Institutions (OSFI);
• The Canada Deposit Insurance Corporation (CDIC);
• The Financial Consumer Agency of Canada (FCAC); or,
• The Bank of Canada.

Related links:

• Consultation Paper: Consultation on Proposals to Strengthen Canada’s Financial Sector

Get in touch

If you have any questions about this consultation, please contact us at legreview-examenleg@fin.gc.ca.