Financial Consumer Protection Framework and amendments to FCAC Act (transition binder 2019)


New or enhanced FCAC powers

Administrative Monetary Penalties

FCAC Act -  Section 19

Summary of changes

Public Naming

FCAC Act – Section 31

Summary of changes

Commissioner’s Direction

Bank Act – Section 661.1

Summary of changes

Introduces a new discretionary power for the Commissioner to direct a bank or person to comply with a compliance agreement or consumer provision

Special Audits

Bank Act – Section 659

Summary of changes

Introduces a new discretionary power to compel banks to undergo third-party independent audits if, in the opinion of the FCAC Commissioner, it is required for the purposes of administering the FCAC Act and enforcing consumer provisions

Part XVI.1 – Whistleblowing

Bank Act – Sections 979.1 – 979.4

Summary of changes

New obligations on banks to implement a whistleblowing program for their employees

A whistleblower will be protected against any disciplinary or retaliatory action taken against them and banks shall keep confidential the identity of any such whistleblower

Purpose Clause, FCAC Mandate, Financial Literacy Leader

FCAC Act – Section 2 (Purpose), Section 3 (Objects), Section 4.1 (Repeal)

Summary of changes

New and amended Consumer Provisions

Complaints (Banks)

Bank Act - 627.43 – 627.47

Summary of changes

Strengthens the banks’ complaints handling procedures by:

Complaints (External Complaints Bodies)

Bank Act - 627.49

Summary of changes

New timeframe requirements, including:

Committee of the Board of Directors

Bank Act - 157(2)(e) and 195.1

Summary of changes

The directors of a bank will have a new obligation to designate a committee to ensure that the bank is complying with consumer provisions.

Appropriate Products/Services and Remuneration

Bank Act - 627.06 – 627.07

Summary of changes

A new requirement for banks to put in place procedures to ensure products are appropriate for their clients and to ensure that remuneration doesn’t conflict with this requirement

Electronic Alerts

Bank Act - 627.13

Summary of changes

New requirement for banks to send electronic alerts to customers when balances meet specified thresholds

Prohibited Conduct (Undue Pressure)

Bank Act - 627.04

Summary of changes

Banks will be prohibited from taking advantage of a person, or imposing undue pressure or coercing them for any purpose

For purpose of the Bank Act, undue pressure means any pressure that could be reasonably considered to be excessive or persistent in the circumstances

Express Consent

Bank Act – Sections 627.08 – 627.09

Summary of changes

Banks will be prohibited from providing a person with a product or service or without first, for example,


Bank Act – Section 627.02

Summary of changes

New obligation for banks to train their staff and third-party providers on policies and procedures for complying with the consumer provisions

False or Misleading Information

Bank Act – Section 627.03

Summary of changes

Banks will be prohibited from providing false or misleading information to customers, to the public or the Commissioner


Bank Act – Section 627.997

Summary of changes

Banks will have a new obligation to provide a credit or refund for charges or penalties that have not been disclosed or consented to by customers

Optional Products and Services

Bank Act – Sections 627.41 – 627.42

Summary of changes

Banks are obligated to provide separate agreements for optional products or services

Limited Liability for Unauthorized Credit Card Use

Bank Act – Section 627.33

Summary of changes

Introduces protections for a credit cardholder on the unauthorized use of their credit card, their account information or their authentication information

If the credit cardholder fails to report the unauthorized use, their maximum liability is $50, unless the bank can demonstrate gross negligence or gross fault on the part of the credit cardholder

Arrangements with Affiliates

Bank Act – Section 627.15

Summary of changes

A bank must ensure that their affiliates, representatives, agents or other intermediaries that sell the bank’s products or services comply with the consumer provisions


Bank Act – Section 627.14

Summary of changes

New provision that requires all advertisements made by an institution to be accurate, clear and not misleading

Information Box

Bank Act – Section 627.57

Summary of changes

New obligation for banks that all information, which is required to be disclosed in an application or before entering into an agreement in respect of a product or service will need to be disclosed in a single prominently displayed information box

Currently, this obligation exists for certain required disclosures. For example,

Product Renewal, Rollover or Promotion Disclosure

Bank Act – Sections 627.60 - 627.61

Summary of changes

New requirement for banks to provide disclosure prior to the automatic renewal, rollover, or end of a promotional offer. The disclosure must include any applicable:

Voluntary Codes/Public Commitments

Bank Act – Section 627.66

Summary of changes

New requirements for banks to disclose the voluntary codes of conduct and the public commitments they have adopted, by making them available:

Other considerations

Implementation process

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