Decision #63356-25Q103

File: 63356-25Q103

Compliance issue

Branch Closure — Failure to notify Commissioner within required time/Failure to inform consumers about conditions under which the Commissioner may require a public meeting
Bank Act, s. 459.2
Notice of Branch Closure (Banks) Regulations, ss. 4(1)(a)(i), 5(4)(g)

A bank announced a series of branch closures. For three of the five closures, the bank failed to notify the Commissioner within the required time. Paragraph 4(1)(a)(i) of the Notice of Branch Closure (Banks) Regulations requires that notice be given to the Commissioner in writing no later than four months before the proposed closure date.

For five of these closures, the bank failed to notify customers and the public of the conditions under which the Commissioner may require a public meeting between the bank, interested parties and FCAC to further discuss the closure. Paragraph 5(4)(g) of the Regulations stipulates that notices to customers and the public shall include a statement that the Commissioner may require a public meeting and the conditions under which he may do so.

Compliance measure(s) taken

A Letter of Reprimand^{Footnote 1}  noting eight violations against the bank.

Compliance considerations

The bank was one day late in providing notice to the Commissioner and had taken measures to provide four months notice of the closures prior to the coming into force of the Regulations. These notices did not however contain all of the information required by legislation, and this information was not provided once the Regulations came into force. When the branch was informed of the problem they provided customers with information on the conditions under which the Commissioner may require a public meeting. At this time, enough time was still remaining for affected customers to exercise their right to request the Commissioner to require a public meeting. The bank had no prior violations noted against it.

Corrective measures taken by financial institution

• Provided formal notice to the Commissioner.
• Revised letters containing all required elements of Subsection 5(4) of the Regulations were mailed to affected customers.
• Placed a notice in the form of a “countercard” in a conspicuous place in a public area of the five branches. The bank made a commitment to FCAC that this countercard would remain until the time the branch closed.

Outcomes

By ensuring that the Commissioner is made aware of all branch closures, FCAC is able to monitor proactively to make certain that consumers have been provided adequate notice of the branch closure and have received all of the information required. When consumers are given sufficient notice of a branch closure and are aware of the conditions under which the Commissioner can require a public meeting, they are in a better position to make informed choices and find alternatives to their current banking services. By making certain that consumers are aware of their rights, FCAC and the financial institution ensure consumers have the opportunity to communicate openly with their bank and explore ways of easing any negative impact the closure may have on their lives or on the community as a whole.