Appearance before the Standing Committee on Public Accounts (December 1, 2020): Opening statement

Opening Statement of Judith Robertson, Commissioner of the Financial Consumer Agency of Canada, to the House of Commons Standing Committee on Public Accountsfor its study of Report 2—Student Financial Assistance, of the 2020 Spring Reports of the Auditor General of Canada

December 1, 2020 (11:00 am to 1:00 pm)

Thank you, Madam Chair and members of the standing committee, for the invitation to appear before you today.

The Financial Consumer Agency of Canada is a federal agency that operates independently and is primarily funded by the financial institutions we regulate.

Our mandate is to protect Canadian financial consumers.

We do that in two principal ways: first, we supervise federally regulated financial entities, primarily banks, for compliance with consumer protection measures as set out in legislation, public commitments, and codes of conduct.

Second, we strengthen the financial literacy of Canadians through programs, tools and resources to help consumers make informed financial decisions. We believe that informed consumers are better protected consumers. In addition, we undertake research and experimentation to provide evidence to support these efforts and to identify emerging issues.

All of this work is carried out in close collaboration with many individuals and organizations in the public, private and non-profits sectors – enabling us to extend our reach and impact across the country.

Financial literacy is a vital skill that people develop and augment as they go through the typical stages of life. Starting young makes a difference, so FCAC undertakes various activities focused on helping people develop good financial habits early in life.

For example, youth and young Canadians were a key target audience during the 10th annual Financial Literacy Month, which wrapped up just yesterday.

This year, FCAC hosted a webinar in collaboration with the Canadian Bankers Association that targeted young graduates interested in learning more about responsible money management.

FCAC has also developed and piloted educational training materials for post-secondary students in collaboration with both the Canadian Association of Student Financial Aid Administrators and Colleges and Institutes Canada.

We chair a federal government committee of departments and agencies – which includes Employment and Social Development Canada – that exchanges information and coordinates efforts to advance financial literacy across various population groups, including youth.

These are just a few examples of how FCAC is helping to advance the financial literacy of Canadians. As you can see, collaboration is central to our efforts.

Our partnerships have proven to be a successful way to develop and deliver financial education initiatives.

Turning to the Auditor General’s report, FCAC welcomes the recommendation that involves our efforts to strengthen the financial literacy of post-secondary students in collaboration with ESDC.

FCAC and the Canada Student Loans Program team at ESDC have a longstanding and positive relationship. Our joint focus is to help student loan borrowers improve their financial literacy and better manage their finances.

As discussed in the Auditor General’s report, our two organizations have been working together to include FCAC’s education materials – many of them developed specifically for students – in ESDC’s National Student Loans Service Centre portal.

We are pleased to report that, over the past year, FCAC’s education materials have been added to the student loan portal, as well as to the personal dashboards of student borrowers.

This includes links to FCAC’s Budget Planner, information on how loans and credit cards work, and consumers rights related to credit products. There are also tips on paying back student loans and setting up an emergency fund.

As we move forward, we will continue build on our close partnership with ESDC and support its efforts to make enhancements and integrate new content into the portal.

In closing, FCAC is committed to continue advancing financial literacy in Canada with the support of federal government partners, like ESDC, and other stakeholders.

As part of this, I’d like to bring your attention to the fact that we recently announced the launch of public consultations to renew our national strategy for financial literacy. The first national strategy was adopted in 2015 and successfully laid a roadmap to bring us to where we are today.

These consultations, which close the end of January, will help us determine the best strategy for the next 5 years to equip Canadians with the financial knowledge, skills and confidence they need for the road ahead. We invite anyone interested to share their ideas and help shape our future plans.

This completes my opening statement. I would be happy to answer questions that you may have.