Branch Closure — Failure to notify Commissioner within the required time of a closure/Failure to notify customers and the public within the required time of a closure
Bank Act, s. 459.2
Notice of Branch Closure (Banks) Regulations, ss. 4(1)(a)(i) and 5(2)
A bank failed to notify the Commissioner at least four months before the proposed date of a branch closure as required by sub-paragraph 4(1)(a)(i) of the Notice of Branch Closure (Banks) Regulations.
The bank also failed to provide customers and the public with at least four months advance notice of the closure as required by subsection 5(2) of the Regulations.
Compliance measure(s) taken
The bank had sufficient time to conduct its lease negotiation at the closing branch and still issue timely notices of the closure. The bank also had previous violations noted against it with respect to the Notice of Branch Closure (Banks) Regulations.
Corrective measures taken by financial institution
- Implemented a new “early warning” framework to help ensure that potential issues concerning compliance with the Regulations are identified, discussed and resolved early in the process.
- Continued implementation of an earlier action plan which had been established as a response to prior violations.
- Paid the AMP.
By ensuring that the Commissioner is made aware of all branch closures, FCAC is able to monitor pro-actively to make certain that consumers have been provided adequate notice of the branch closure and that they have received all of the information required. When consumers are given sufficient notice of a branch closure, 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 and on the community as a whole.
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