Stakeholder collaboration and engagement (transition binder 2019)

Overview

FCAC engages and consults with many stakeholders, including

• Federally regulated financial entities
• Industry associations
• Consumer groups
• Provincial and territorial regulators
• Canada’s financial safety net agencies
• Financial literacy stakeholders
• International organizations
• Canadians

Federally regulated entities

• FCAC engages with federally regulated entities to strengthen collaboration and engagement
  • Regular meetings with senior officials to share priorities, build trust and promote responsible market conduct
  • FCAC annual industry sessions present opportunities for open discussions and information sharing on topics such as emerging trends and issues, plans and priorities, and supervision and compliance challenges
• The Commissioner meets on an annual basis with senior management of banks and PCNOs
• Other engagement opportunities include public consultations, round tables, speaking engagements and surveys

Industry associations

• FCAC works collaboratively with trade associations across the financial sector to gather industry input, promote responsible market conduct and champion financial literacy solutions
• Key group: Canadian Bankers Association
  • Trade association and lobby group representing Canadian banks
  • Neil Parmenter, President and CEO

Consumer Protection Advisory Committee (CPAC)

• CPAC provides guidance and advice to the FCAC Commissioner in carrying out the Agency’s financial consumer protection mandate
• Includes representation from the public, private, non-profit and academic sectors
• Members’ responsibilities include
  • Providing information on financial consumer protection issues in support of FCAC’s financial consumer protection mandate
  • Identifying and evaluating trends and emerging issues of relevance to financial consumers
  • Sharing and discussing research relevant to FCAC’s financial consumer protection mandate and identifying research opportunities
  • Contribute their knowledge and expertise in the best interests of financial consumers

CPAC Members

Chair: FCAC Commissioner

Members

• Marie Elaine Farley, President and CEO, Chambre de la sécurité financière
• Maryse Guénette, Research and Presentation Director, Option consommateurs
• Scott Hannah, President and CEO, Credit Counselling Society
• George Inny, Executive Director, Automobile Protection Association
• Kelley Keehn, Financial Planning Standards Council
• Marc Lacoursière, Professor, Laval University
• Don Mercer, Consumer Council of Canada
• Louise Simbandumwe, Co-Director, Supporting Employment & Economic Development
• Luc Thibaudeau, Court of Quebec, Judge

Provincial regulators

• Provinces and territories play a key role in regulating financial sector market conduct in Canada
• Provincial-territorial regulatory regimes oversee a wide range of financial entities, such as insurance companies, trust and loan companies, credit unions, and securities firms
• Many provinces and territories engage in consumer awareness and education initiatives to inform consumers about their rights and responsibilities
• FCAC regularly engages with provincial regulatory agencies to exchange information and views on issues related to financial consumer protection

Provincial regulators: Institutional arrangements

While institutional arrangements generally vary by jurisdiction, common models have emerged over time. The following provides an overview of the current provincial and territorial institutional models across Canada.

Twin peaks model (one agency for consumer protection, one for financial sector oversight)

• Alberta
  • Prudential regulator:  Treasury Board and Finance
  • Consumer protection authority: Service Alberta
•  British Columbia
  • Prudential regulator: Financial Institutions Commission
  • Consumer protection authority: Consumer Protection BC
• Manitoba
  • Prudential regulator: Manitoba Financial Services Agency
  • Consumer protection authority: Office of Consumer Protection (Manitoba Justice)
• Newfoundland and Labrador
  • Prudential regulator: Credit Union Deposit Guarantee Corporation
  • Consumer protection authority: Service NL
• Nova Scotia
  • Prudential regulator: Finance and Treasury Board
  • Consumer protection authority: Service Nova Scotia 
• Ontario
  • Prudential regulator: Financial Services Regulatory Authority of Ontario
  • Consumer protection authority: Ministry of Government and Consumer Services
• Prince Edward Island
  • Prudential regulator: Credit Union Deposit Insurance Corporation
  • Consumer protection authority: Justice and Public Safety
• Quebec
  • Prudential regulator: Autorité des marchés financiers
  • Consumer protection authority: Office de la protection du consommateur

Single agency model for consumer protection and financial sector oversight

• New Brunswick
  • Financial and Consumer Services Commission
• Saskatchewan
  • Financial and Consumer Affairs Authority

General agency model (no prudential regulator)

• Northwest Territories
  • Municipal and Community Affairs
• Nunavut
  • Department of Community and Government Services
• Yukon
  • Department of Community Services

Financial safety net agencies

FCAC is required to be a member of:

• The Senior Advisory Committee (SAC)
  • Comprised of the four federal financial sector oversight bodies and the Department of Finance
  • Provides policy advice related to the financial sector to the Minister of Finance
• The Financial Institutions Supervisory Committee (FISC)
  • Serves as a forum for information exchange on supervisory issues regarding federal financial institutions
• Canada Deposit Insurance Corporation (CDIC) Board of Directors
  • Contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure

SAC and FISC

• SAC is chaired by the Department of Finance
• FISC is chaired by the Office of the Superintendent of Financial Institutions (OSFI)
• Members of both SAC and FISC include
  • Bank of Canada – Stephen S. Poloz, Governor
  • CDIC – Peter Routledge, President and CEO
  • Department of Finance – Paul Rochon, Deputy Minister
  • OSFI – Jeremy Rudin, Superintendent of Financial Institutions
  • FCAC – Commissioner

CDIC Board of directors

Chair: Robert Sanderson

Directors

• Linda Caty, Lawyer
• David Dominy, CEO, Firma Foreign Exchange Corporation
• Wendy Millar, Financial Executive
• Andrew Kriegler, President, IIROC
• J. Martin Castonguay, Chartered Professional Accountant
• Stephen S. Poloz and Paul Beaudry, Governor and Deputy Governor respectively, Bank of Canada
• Paul Rochon, Deputy Minister, Department of Finance
• Jeremy Rudin, Superintendent of Financial Institutions and Jamey Hubbs, Assistant Superintendent, Deposit Taking Supervision Sector, OSFI
• Commissioner, FCAC

Financial literacy stakeholders

To implement the National Strategy for Financial Literacy, FCAC works closely with stakeholders across the private, public and non-profit sectors – including

• National Steering Committee on Financial Literacy
• Interdepartmental Committee on Financial Literacy
• 18 financial literacy networks across the country, representing close to 600 organizations
• Industry groups such as Canadian Professional Accountants of Canada, a leader on workplace financial education programs (key priority)
• Martin Family Initiative and Seven Generations Education Institute, leaders on Indigenous Peoples (key priority)

Financial Consumer Protection Organisation (FinCoNet)

• International organization of supervisory authorities with responsibility for financial consumer protection
• Promotes sound market conduct and strong consumer protection through efficient and effective financial market conduct supervision
• Focuses on banking and consumer credit

G20-OECD Task Force on Financial Consumer Protection

• In February 2011, the G20 called on the OECD, the Financial Stability Board (FSB) and other relevant international organizations to develop common principles on consumer protection in the field of financial services
• The G20 High-level Principles on Financial Consumer Protection were endorsed at the G20 meeting on 14-15 October 2011
• The Task Force is engaged in supporting the implementation of the G20 High-level Principles on Financial Consumer Protection

OECD’s International Network on Financial Education (INFE)

• An international network that promotes the development and adoption of financial literacy policies and best practices
  • Includes members from over 115 countries
• Policy focus areas
  • Standard setting, implementation and evaluation
  • Financial education and the impact of digitalization
  • Financial education in the workplace (Canada co-chairs this working group)
  • The impact of ageing populations and the needs of older consumers