Appearance before the Standing Committee on Finance (July 7, 2020): FCAC’s international coordination and cooperation in response to COVID-19

Issue

FCAC is using opportunities for international coordination and cooperation to improve and measure its own responses to COVID-19 challenges and its impact on financial consumers and Federally Regulated Financial Institutions.

Background

FCAC is an active contributor in international networks, such as the OECD Task Force on Financial Consumer Protection, the International Financial Consumer Protection Organization (FinCoNet), and the International Network on Financial Education (INFE). Continued involvement has established FCAC as a reliable partner in policy, supervision, and research of financial consumer protection.

Data/Quick facts

• FCAC remains engaged in international networks as the COVID-19 crisis continues. Participation has included governing council meetings, special sessions, and delivering written products.  
• The OECD Task Force is coordinating a report on FCP measures implemented in response to COVID-19, generating data on risks to consumers, fraud, credit and banking products, and impacts to supervisory activities. As of June 19, 2020, 62 countries (86 organizations), authorities, regional jurisdictions, and international organizations provided data for this survey.
• Data continues to be solicited and updated until September 2020, with the report distributed among participants on an ongoing basis. 
• FCAC coordinated Canada’s federal contribution to this report in collaboration with the Department of Finance and Office of the Superintendent of Financial Institutions.

Key messages

• The pandemic is worldwide and regulators are looking to work together to ensure consumers in all jurisdictions are protected. 
• FCAC is using its international networks to improve and better measure Canadian responses to COVID-19 challenges and its impact on financial consumers and FRFIs. Survey results suggest the issues and concerns experienced in Canada align with the themes of international colleagues, such as the implementation of financial relief measures, concerns over consumer welfare, risks of over indebtedness, and rapid increase in digitalisation of financial services.
• Continued collaboration and coordination with international networks will better place FCAC as a leader in policy, supervision, and research of financial consumer protection issues. 
• International collaboration has primed FCAC to consider long-term challenges linked to COVID-19, such as exit strategies from financial relief measures, and implications for consumers due to the rise of digital payments, online banking, branch closures, and privacy/cybersecurity risks.
• FCAC is well positioned to continue to collaborate and learn from other jurisdictions.