House Standing Committee on Finance (May 31, 2024)
Opening statement

(541 words – about 4 ½ minutes)

• Thank you, Mr. Chair, for the introduction, and to the Committee for inviting us to appear before you today.
• My name is Werner Liedtke. I am the Interim Commissioner of the Financial Consumer Agency of Canada, or FCAC.
• I am joined by Frank Lofranco, Deputy Commissioner, Supervision and Enforcement, and Dr. Supriya Syal, Deputy Commissioner, Research, Policy and Education.
• FCAC is an independent federal agency that protects the rights and interests of consumers of financial products and services.
• At FCAC, we are happy that the financial well-being of Canadians is such an important part of Budget 2024.
• Budget 2024 contained several important initiatives of note for our agency, including a new role and an expanded mandate to oversee, administer, and enforce Canada's Consumer-Driven Banking Framework.
• FCAC is a leader and innovator in financial consumer protection and is well positioned to take on this new responsibility.
• We are working closely with the Department of Finance to advance the Consumer-Driven Banking Framework, which prioritizes innovation and includes strong and consistent protections for Canadians who will use consumer-driven banking.
• This new framework is guided by three objectives:
  • safety and soundness;
  • protecting the financial well-being of Canadians; and
  • advancing economic growth and international competitiveness.
• While the Department of Finance leads on policy and legislative or regulatory development for this framework, Budget 2024 proposes to provide $1 million in 2024-2025 to FCAC to support preparation for its new responsibilities.
• This funding in the budget will also allow us to prepare for a consumer awareness campaign.
• Over the coming months, we will support the Department of Finance in its engagement with the financial sector and other stakeholders on the development of the remaining elements of the Consumer-Driven Banking Framework.
• FCAC has deep operational knowledge of how the banking industry in Canada functions through our work as an industry regulator.
• Consumer-driven banking complements existing financial services.
• FCAC’s suitability for oversight of consumer-driven banking extends also from our knowledge of consumer trends and issues and our longstanding consumer education mandate.
• We conduct research to better understand consumer needs and behaviour, including how financial decisions are made.
• We also collaborate with organizations across the financial ecosystem including financial service providers, consumer advocacy groups, and provincial and territorial regulators.
• These factors position the Agency to effectively protect consumers while overseeing an innovative and competitive framework that benefits all parties.
• Budget 2024 also includes other initiatives to benefit and protect consumers, such as the low-cost/no-cost bank account commitment originally announced in 2014.
• FCAC is working with banks to update this commitment to:
  • expand the features of low-cost accounts to reflect modern banking, and
  • expand the accessibility of no-cost accounts to more Canadians
• Our work to update the commitment is another example of how our understanding of consumer needs complements our regulatory mandate.
• I will end there. I look forward to your questions. Thank you.