What we heard: Public consultation on the Financial Consumer Protection Framework Guidelines

Comment: Define key terms in the Guidelines.

Response: The Guideline was amended to include key terms, including Consumer, Employee, Designated Employee, Senior Designated Employee, Close and Resolve.

Comment: Account for varying corporate structures.

Response: The Guideline was amended to reflect the oversight structure of Authorized Foreign Banks.

Comment: Clarify the applicability of the Guideline to Banks’ commercial clients.

Response: The Guideline addresses this by using the term “Consumer” to refer to natural persons or entities as provided in the legislation.

Comment: Include fairness as a key principle.

Response: The Guideline was amended to include an additional mention of fairness as an element of the principle of Effectiveness. The Guideline was also amended to clarify FCAC’s expectation that Banks deal with complaints fairly and consistently at all stages of the complaint-handling process. 

Comment: Specify that complaint-handling services should be available at no cost to Consumers.

Response: The Guideline establishes the principle of Accessibility, which aligns with the standard industry practice of handling complaints at no cost to Consumers. FCAC monitors industry practice in this regard.

Comment: Provide greater clarity regarding who can be deemed a “Designated Employee” for receiving and dealing with complaints.

Response: The Guideline states that a Bank may designate any Employee whom it deems appropriate.

Comment: Adding the word "complaints" to someone's title could confuse clients. Titles should be identified as a best practice, not as a requirement. 

Response: While the use of the word “complaint” is not required in Employee titles, the Guideline clarifies FCAC’s expectation that the title and responsibilities of any Designated Employee should reflect that the position deals with complaints on a regular basis.

Comment: Initial and ongoing “formal training” on complaint-handling should be limited to those roles dealing with complaints.

Response: The Guideline was amended to specify that all Employees who deal with complaints, rather than all Employees generally, should undergo formal training on complaint-handling.

Comment: Systemic issues and proposed corrective actions should be reported at least annually to the Board of Directors and to FCAC.

Response: Reporting obligations on these issues are covered under FCAC’s Mandatory reporting guide for federally regulated financial institutions.

Comment: Root cause analysis of systemic issues should be performed annually.

Response: The Guideline addresses this by clarifying FCAC’s expectation that Banks have mechanisms in place for identifying and remedying any recurring or systemic problems.

Comment: A Bank’s complaint-handling Policies and Procedures should not only identify, but also address and document systemic problems.

Response: The Guideline was amended to specify that Banks should address systemic problems and their underlying causes.

Comment: Whenever a recurring or systemic issue is identified, regardless of how it is identified, redress and/or reimbursement should be provided to affected customers when deemed appropriate.

Response: The Guideline addresses this by clarifying FCAC’s expectation that Banks provide redress and reimbursement to all affected Consumers.

Comment: Institutions should disclose their policies around client redress to ensure affected clients can educate themselves as they pursue their complaints.

Response: The Guideline addresses this by reasserting that Banks must disclose their complaint-handling Policies and Procedures, including redress and reimbursement. The Guideline also requires all Employees who deal with complaints to know and understand when they must provide the Bank’s complaint-handling Policies and Procedures to Consumers under the Bank Act.

Comment: Suggest greater recognition of the “potential” (versus necessity) for redress or reimbursement. The Guideline should reflect the redress limits in the Bank Act.

Response: The Guideline was amended to specify that Consumers will have the right to both timely redress and reimbursement for financial and non-financial impacts based on the circumstances of their complaints.

Comment: The Guideline should provide a deadline by which Banks must follow through on Resolved complaints.

Response: The Guideline clarifies FCAC’s expectation that Banks will provide Consumers with timely redress and reimbursement for financial and non-financial impacts based on the circumstances of their complaints.

Comment: The Guideline should stipulate the prescribed period for dealing with complaints.

Response: The Guideline was amended to reference the applicable regulation stipulating the prescribed period for dealing with complaints.

Comment: Employees who are not Designated Employees should be able to Close or Resolve complaints.

Response: The Guideline was amended to specify that Employees who are not Designated Employees can Resolve or Close complaints. If a non-Designated Employee closes a complaint, the Bank should provide the Consumer with a substantive written response.

Comment: The Guideline should be explicit that the 14-day referral period is part of the 56-day period.

Response: The Guideline was amended to specify that the 56-day period begins on the date on which the complaint is communicated to the Bank.

Comment: Reduce the referral period to 7 calendar days from 14 calendar days.

Response: The Guideline establishes a period of 14 calendar days that provides a reasonable balance that allows Consumers to have most of their complaints handled at the non-Designated level while still ensuring that the referral of complaints to the Designated level will allow complaints to be handled within the prescribed period of 56 days. The referral period also provides Consumers with clarity on the maximum time frame before a complaint moves to the Designated level.

Comment: A substantive written response in all instances is burdensome to administer and could cause delays for Consumers.

Response: The Guideline was amended to specify that a substantive written response is required when a complaint is: 

• Closed by an Employee other than a Designated Employee
• Closed or Resolved by a Designated Employee

Comment: The substantive written response should include a statement of the facts of the complaint.

Response: The Guideline was amended to specify that a Bank’s substantive response should include a statement of facts relating to the complaint.

Comment: Knowledge and understanding of the legislative requirements outlined in the Bank Act should be limited to those roles dealing with complaints.

Response: The Guideline was amended to specify that all Employees involved in dealing with complaints, rather than all Employees generally, must know and understand when they must provide the Bank’s complaint-handling Policies and Procedures to Consumers under the Bank Act.

Comment: Specify that Banks can communicate with Consumers by electronic means.

Response: The Guideline was amended to specify that a Bank can acknowledge or respond to a complaint electronically if it was submitted that way, or if the Consumer had previously consented to receive electronic documents.

Comment: Banks should help Consumers formulate their complaints.

Response: The Guideline refers to the principle of Accessibility and FCAC’s expectation that Banks ensure that all Employees who deal with complaints are able to help Consumers navigate the Bank’s complaint-handling process.

Comment: The information that a Bank provides on its website(s) annually should include the number of complaints dealt with by all Designated Employees, not just the most senior Designated Employee.

Response: The legislative framework sets out the information that Banks must include annually on their websites. 

Comment: Specify the time period for Banks to acknowledge complaints.

Response: The Guideline states FCAC’s expectation that Banks acknowledge receipt of each complaint in writing—as required under the Bank Act—without delay.

Comment: Banks should have specific complaint-handling Policies and Procedures for vulnerable populations.

Response: The Guideline applies to Banks’ handling of complaints by vulnerable populations. The Accessibility principle establishes FCAC’s expectation that Banks’ complaint-handling procedures should be easy for Consumers to locate, navigate and understand. The principle applies to all Consumers, without exception, including vulnerable populations.

Comment: Clarify the applicability of the Guideline to smaller financial institutions.

Response: The Guideline addresses this in that it applies to all Banks without exception. At the same time, the Guideline recognizes that Banks may tailor their complaint-handling Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: Clarify that Banks need to consider other legislation and regulations.

Response: The Guideline was amended to confirm that it should be read in conjunction with all applicable legislation and regulations.

Comment: Clarify that the Guideline applies to all products and services, regardless of delivery channel.

Response: The Guideline is principles-based and applies to products or services offered or sold, regardless of delivery channel.

Comment: The Guideline should clearly distinguish between the Policies and Procedures directly related to offering or selling appropriate products and services and the more general policies and procedures of the Bank.

Response: The Guideline was amended to account for other relevant policies and procedures that may be involved in meeting Banks’ obligations around offering or selling appropriate products or services.

Comment: The Guideline should add an overarching principle that all dealings with consumers shall be conducted fairly and in the best interests of clients.

Response: The Guideline reflects the legislative framework and the emphasis on products and services being “appropriate.” The legislation does not establish a “best interests” standard.

Comment: The Guideline should:

• prescribe required Know Your Customer (KYC) information, forms to be used to collect it, when and how it should be updated, and how consumers should confirm the information is accurate
• set out the topics to be covered by training, and when and how training should be provided
• provide guidance on how to incorporate specific criteria into the appropriateness assessment

Response: These topics are covered by the Guideline. The Guideline is written to be principles-based, and it recognizes that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: The Guideline should do more to ensure consistency within and between Banks.

Response: The Guideline sets out FCAC’s expectations for all Banks while recognizing that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services. This is intended to help ensure consistency within and between Banks.

Comment: Require Banks to report on their Policies and Procedures, their related key performance indicators, remuneration and any proposed enhancements.

Response: The legislative framework requires a Bank’s senior management to report to the Board of Directors on the Bank’s compliance with the consumer provisions. FCAC monitors this requirement.

Comment: Define "appropriate" or use a different word, given that appropriate is vague and does not align with other words (e.g., “fair” or “suitable”) used in other industries or jurisdictions. Where possible, ensure the Guideline is aligned with requirements in other jurisdictions.

Response: The comments fall outside the scope of the consultation because the term “appropriate” is set out in legislation.

Comment: Require Banks to have stricter identification (ID) requirements.

Response: The legislative framework sets out the ID requirements to open a deposit account. Other ID requirements must meet the requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related regulations.

Comment: Clarify retention periods and other record-keeping requirements.

Response: The Guideline requires Banks to keep records that demonstrate it has established and implemented Policies and Procedures that meet the requirements of the Bank Act while recognizing that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: The Guideline should do more to address the needs of vulnerable consumers, including racialized and Indigenous Peoples.

Response: The Guideline was amended to include mention of consumers with financial vulnerabilities and to state that FCAC expects Banks’ Policies and Procedures to ensure that Banks offer or sell products or services that are appropriate to all consumers.

Comment: Ensure that terminology is aligned. In some places, the Guideline uses “before offering or selling,” while in others it uses "when offering or selling."

Response: The Guideline was amended to use “when offering or selling.” 

Comment: Clarify what Banks should do to help consumers access or obtain appropriate products, such as by providing advice on how to obtain appropriate products in the future.

Response: The Guideline sets out FCAC’s minimum expectations for Banks’ Appropriate Products and Services Policies and Procedures, while recognizing that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: Include an expectation that Banks do not determine that a product is appropriate for a consumer where the KYC information is inaccurate, outdated, incomplete or otherwise questionable, or where the consumer refuses or is unable to provide the KYC information.

Response: The Guideline addresses this by setting out FCAC’s expectation that a Bank’s Policies and Procedures address circumstances where consumer information is unreliable, inaccurate, outdated or incomplete.

Comment: Consumers should have the opportunity to update their own information.

Response: The Guideline addresses this by setting out the KYC principle, whereby a Bank should collect and record the KYC information it needs to understand consumers’ circumstances.

Comment: Training should be a standalone principle.

Response: The Guideline addresses this by including training as part of the principle on Know Your Product.

Comment: Banks should monitor employees to ensure they are complying with their obligations.

Response: The Guideline addresses this by setting out FCAC’s expectation that a Bank’s senior management and the committee of the Board responsible for the Bank’s compliance with consumer provisions—or, in the case of an Authorized Foreign Bank, its senior management—should oversee the establishment and implementation of the Policies and Procedures.

Comment: Products or services that are not appropriate for certain groups of consumers, such as vulnerable Consumers, should not be permitted to be sold to them.

Response: The comments fall outside the scope of the consultation, given that the legislation does not set out such a fiduciary obligation on Banks. In addition, the Guideline was amended to include mention of consumers with financial vulnerabilities and that FCAC expects a Bank’s Policies and Procedures to ensure they offer or sell products or services that are appropriate to all consumers.

Comment: Training should include a proctored examination and minimum criteria for passing.

Response: The legislative framework sets out that Banks should ensure that any person who offers or sells its products or services in Canada is trained with respect to the Policies and Procedures that the Bank has established for complying with the consumer provisions.

Comment: New products should be stress-tested.

Response: The Guideline addresses this by setting out that Banks’ Policies and Procedures ensure they consider appropriateness when developing or deciding to offer or sell products or services.

Comment: Conducting an appropriateness assessment may be difficult for certain products or channels.

Response: The Guideline is principles-based and applies to products or services offered or sold, regardless of delivery channel.

Comment: Banks should provide the tools, software, etc., necessary for client-facing staff to make appropriate recommendations.

Response: The Guideline recognizes that Banks may tailor their Policies and Procedures—including how they are implemented—to align with the nature, size and complexity of their business, distribution channels, and products and services. Part of this recognition is that Banks are to provide the necessary tools and software to be able to implement the Policies and Procedures.

Comment: Include an expectation that Banks do not offer or sell products or services in circumstances such as when those products or services are not appropriate or when they cannot be assessed.

Response: The comments fall outside the scope of the consultation, given that the legislation sets out the requirements that products and services be “appropriate” for a consumer; the legislation does not set out such a fiduciary obligation on Banks.

Comment: Require Banks to communicate in an understandable and clear manner that facilitates informed decision-making. If necessary, clarify what information they must include and how.

Response: The Guideline addresses this by setting out that Banks should inform consumers when products or services are not appropriate for them, or when such appropriateness cannot be assessed, and to provide that information in a manner and language that are clear, simple and not misleading.

Comment: Issue new, clear language guidance.

Response: The comments fall outside the scope of the consultation.

Comment: Prohibit Banks from providing misleading information.

Response: The legislative framework prohibits Banks from providing misleading information.

Comment: Require Banks to use a “best interest” standard and to ensure that remuneration aligns with it.

Response: The comments fall outside the scope of the consultation, given that the legislation does not set out such a fiduciary obligation on Banks.

Comment: Require Banks to review their financial and non-financial incentives to ensure they do not lead to conflicts of interest or mis-selling, and to report annually on these findings.

Response: The Guideline addresses this by setting out that Banks should regularly review their remuneration, incentives and benefits.

Comment: Clarify the time frame within which Banks should review their remuneration Policies and Procedures.

Response: The Guideline sets out FCAC expectations that remuneration be regularly reviewed, while recognizing that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: Banks should be required to have whistleblower policies to protect employees who report that undue pressure to increase sales is resulting in inappropriate product or service sales.

Response: The legislative framework requires Banks to establish and implement policies and procedures related to whistleblowing.

Comment: FCAC should do a baseline study on Bank compensation policies and practices.

Response: The comments fall outside the scope of the consultation.

Comment: FCAC should create a Guideline on fair and appropriate incentive management.

Response: The comments fall outside the scope of the consultation.

Comment: Include specific guidance regarding how Banks can demonstrate compliance with the Guideline.

Response: The Guideline is principles-based and recognizes that each Bank may tailor its Policies and Procedures to demonstrate compliance with this Guideline in a manner that aligns with its business models. FCAC will monitor practices for compliance.

Comment: Clarify which elements are intended as recommendations, and which are legislative obligations.

Response: FCAC expects Banks adhere to all of the elements in the Guideline. Banks should read this Guideline in conjunction with all applicable legislation and regulations.

Comment: Define employee.

Response: The term “employee” is not defined in the Bank Act because it is not a term that requires a definition in legislation. FCAC will monitor practices to determine whether the notion of employee and related requirements under the Bank Act are appropriately applied by the Banks.

Comment: Introduce a circumscribed definition of wrongdoing that is specific to consumer-facing activities.

Response: The legislative framework establishes the definition of wrongdoing.

Comment: FCAC should develop its own program to receive reports of wrongdoing that are within its scope as a regulator.

Response: While out of scope for this consultation, FCAC is developing a Financial Consumer Agency of Canada's whistleblower program for employees of a federally regulated bank. The Guideline, as worded, indicates that employees may report to FCAC, and the legislative framework requires FCAC to have the ability to receive reports.

Comment: Enhance the policy framework for whistleblowing by reviewing Bank Act provisions against up-to-date best practices to encourage effective whistleblowing programs.

Response: The comments fall outside the scope of the consultation. FCAC expects that Banks will consider whistleblowing best practices when designing their Policies and Procedures.

Comment: Establish equivalent whistleblowing programs in other federally regulated areas.

Response: The comment falls outside the scope of the consultation. However, the Financial Consumer Agency of Canada's whistleblower program for employees of a federally regulated bank will accept whistleblower reports from employees of other federally regulated financial institutions. As of June 30, 2022, FCAC’s Whistleblowing Program for Banks web page will include information about how to submit a report to FCAC.

Comment: Clarify application of prohibition from retaliation to third parties.

Response: For added clarity, the Guideline was amended to add footnote 2, which references the applicable legislation stipulating a prohibition from retaliation, including how it applies to Third Parties.

Comment: Clarify the authority structure that should be implemented for the administration of a Bank’s whistleblowing program.

Response: The Guideline has been amended to add that the senior management of an Authorized Foreign Bank should oversee the implementation and establishment of Policies and Procedures. The Guideline, as worded, also sufficiently indicates that a Bank’s senior management and the committee of the Board responsible for compliance with consumer provisions should oversee the implementation and establishment of Policies and Procedures.

Comment: Introduce a principle of independence, necessitating the need for a greater regulatory role or the use of third parties within the regulatory framework.

Response: The Guideline addresses this by clarifying the expectation that employees have the option to report externally to the Commissioner of FCAC, the Superintendent of Financial Institutions, a government department or body, and law enforcement agencies. The Guideline also clarifies FCAC’s expectation that Banks deal with reports of wrongdoing in an impartial and fair manner.

Comment: Introduce expectations for Board reporting on the whistleblower program.

Response: The comments fall outside the scope of the consultation. The legislative framework in the Bank Act includes the requirement that a Bank’s senior management report to the Board of Directors on the Bank’s compliance with the consumer provisions. FCAC monitors this requirement.

Comment: Provide enhanced and specific expectations regarding the following terms: appropriately, fair, impartial, confidential, timely.

Response: The Guideline addresses this by setting out FCAC’s expectations, while recognizing that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services. Specific expectations regarding the meaning of “confidential” are provided in the section on safeguards.

Comment: Introduce specific expectations regarding adequate resources.

Response: The Guideline addresses this by expecting Banks to appoint resources to adequately maintain, monitor and assess the Effectiveness of its Policies and Procedures. The Guideline recognizes that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: Clarify that resources are intended to be independent from lines of business implicated in the report of wrongdoing to avoid conflicts of interest.

Response: The Guideline was amended to clarify FCAC’s expectation that safeguards should be in place to avoid internal conflicts of interest within a Bank.

Comment: Introduce the expectation that the regular review period is conducted annually, and that employees are made aware of all changes on an ongoing basis.

Response: The Guideline addresses this by including expectations for regular review and ensuring that employees are made aware of any changes to Banks’ Policies and Procedures. The Guideline recognizes that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: Add clarity regarding specific and tailored training.

Response: The Guideline addresses this by setting out FCAC’s expectations that employees who may be more likely to commit or detect a wrongdoing, because of their role, receive specific training to mitigate this risk. The Guideline also reinforces the requirement in the legislative framework that employees must be trained with respect to the Policies and Procedures that have been established for complying with the whistleblowing provisions, while recognizing that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: Introduce the expectation that Banks include each step of the whistleblowing process in their Policies and Procedures.

Response: The Guideline addresses this comment by clarifying FCAC’s expectation that Banks should provide information about steps of the whistleblowing process, while recognizing that for the purposes of investigative integrity, Banks have the flexibility to determine which steps to include.

Comment: Introduce expectations regarding decisions, findings and outcomes as a result of investigations of reports and wrongdoings.

Response: The Guideline has been amended to indicate that the Policies and Procedures should include information about the steps Banks will take when reporting findings and the steps they will take regarding the outcomes of investigations.

Comment: Introduce the expectation that employees be given access to a whistleblowing awareness document.

Response: The Guideline was amended to introduce an expectation that Banks will ensure access to all training materials. In keeping with the guiding principle of Accessibility, this means that training materials should be easy to locate, navigate and understand.

Comment: Clarify the intent of “confidential advice.”

Response: The Guideline was amended to clarify FCAC’s expectation that employees are provided with information to help them navigate Banks’ whistleblowing programs, not to provide advice on the merits of disclosing or whether to report, etc. To this end, the phrase “confidential advice” has been changed to “information about its whistleblowing process in a confidential manner.”

Comment: Introduce the expectation that confidential advice is provided to employees by an external, independent body, not internally by an appointed senior officer.

Response: The Guideline was amended to clarify FCAC’s expectation to “provide information in a confidential manner,” rather than to “provide confidential advice.” FCAC considers the expectation to access information in a confidential manner to be sufficient.

Comment: Introduce the expectation that wrongdoings can be reported at any time and do not need to be reported within any specific time frame to be investigated.

Response: The legislative framework does not restrict the time frame for reporting a wrongdoing. The Guideline includes the expectation that reports of wrongdoing must be dealt with in a timely manner. Refusing to investigate a report of wrongdoing based on a time limitation would not be consistent with a program that is operating in good faith.

Comment: Clarify what is meant by “other channels” and how to integrate channels to report wrongdoings with other regimes for employees to escalate concerns or issues that are time-sensitive (for example, reporting fraud or money laundering).

Response: The Guideline addresses the comments by clarifying that the definition of wrongdoing establishes what can be reported by employees as a report of wrongdoing, affording employees prescribed safeguards. The Guideline includes FCAC’s expectation that issues beyond the scope of a report of wrongdoing, such as Employee complaints or grievances, should be reported through channels more appropriate to those issues.

Comment: Introduce an expectation relating to the timeliness requirements, Accessibility and thresholds for expedited or immediate regulatory reporting or notification where the reported conduct reasonably involves serious fraud or criminal behaviour, serious misconduct or ongoing serious consumer harm.

Response: The legislative framework sets out that employees can choose to report either internally or externally.

Banks are subject to existing requirements to report breaches of market conduct obligations. The Guideline clarifies that if a Bank identifies a breach as a result of investigating a report of wrongdoing, the Bank should assess whether the breach should be reported to FCAC as outlined in the FCAC’s Mandatory reporting guide for federally regulated financial institutions.

Comment: Clarify which safeguards are in place for specific and individualized scenarios when an employee is reporting a wrongdoing.

Response: The Guideline addresses this comment by including expectations relating to prohibitions on retaliation. The circumstances of each report will be different. This comment points to the need for employee awareness training to cover all aspects of the Policies and Procedures, including that the Bank is under a prohibition from retaliation.

Comment: Include examples of the types of information employees should avoid including in their reports if they want to preserve their anonymity.

Response: The Guideline addresses this comment by clarifying that FCAC expects Banks to be able to deal with anonymous reports of wrongdoing without prescribing how Banks must deal with anonymous reports of wrongdoing. A principles-based approach recognizes that Banks may tailor their Policies and Procedures to align with the nature, size and complexity of their business, distribution channels, and products and services.

Comment: Introduce an expectation that employees can report retaliation in person to an individual with authority to stop retaliation and prevent further retaliation, identifying the individual and requiring that they take immediate steps to stop retaliation. Policies and Procedures should also indicate that there are no time restrictions for reporting retaliation, although limitation periods for bringing a legal action may apply.

Response: The Guideline addresses the comments by clarifying that FCAC expects Policies and Procedures to include descriptions of the measures that the Bank will take to protect employees from retaliation. FCAC expects all steps of the process to be timely. Refusing to accept a report of retaliation based on a time limitation would be contrary to Bank Act requirements and would be indicative of a program that is not operating in good faith.

Comment: Clarify the difference between confidentiality and anonymity.

Response: The Guideline uses these common terms to differentiate between situations where an employee provides some identifying information (confidentiality), and those where an employee does not provide any identifying information (anonymity).

Comment: Introduce an expectation that employees are informed of disclosure as soon as possible.

Response: The Guideline addresses this comment by clarifying FCAC’s expectation that all steps of the process will be timely. This includes informing employees in a timely manner when their identity (or information that could reasonably expected to reveal their identity) has been shared.

Comment: Clarify the scope of confidentiality safeguards.

Response: The Guideline was amended to enhance awareness of the scope of confidentiality safeguards and now sets out that a Bank’s Policies and Procedures should indicate that persons and entities identified in the legislation as recipients of reports of wrongdoing may disclose to each other the identity of an employee and/or information that could reasonably be expected to reveal their identity if the disclosure is necessary for investigation purposes. Given that the Guideline is structured to require that employees receive training on everything that is included in whistleblowing Policies and Procedures, FCAC expects that awareness and clarity on the scope of confidentiality will be addressed as part of employee training.

Comment: Enhance incentives and regulatory oversight for reporting and respecting prohibitions by introducing an expectation for a more regularized process for reporting on investigations in progress—and on their resolution—to regulators.

Response: The legislative framework sets out regulatory oversight for information to be provided to FCAC to support the Agency’s supervisory work. Banks are expected to provide this requested information, which may include information on investigations that are in progress relating to a report of wrongdoing. Also, the Guideline includes an expectation that if, as the result of investigating a report of wrongdoing, a breach of a market conduct obligation is identified, the Bank should assess whether it meets the definition of a Reportable Compliance Issue and report it to FCAC, as outlined in the FCAC’s Mandatory reporting guide for federally regulated financial institutions.

Comment: Introduce an expectation that Banks maintain a record of reports of wrongdoing.

Response: The Guideline was amended to introduce the expectation that Banks keep a record of reports of wrongdoing.