Regulatory reporting guide for banks and authorized foreign banks
I. Introduction
The Financial Consumer Agency of Canada (FCAC) supervises federally regulated financial entities to determine whether they are complying with applicable consumer provisions and any codes of conduct and public commitments that FCAC oversees and with which the entities have agreed to abide (collectively, “market conduct obligations”).
This reporting guide applies to Banks (including federal credit unions) and Authorized Foreign Banks (collectively referred to as “Banks”).Footnote 1
As noted in section 5.3 of FCAC’s Supervision Framework, Banks must file specific information with FCAC within the timeframes and formats prescribed by its legislation and regulations. This information includes complaint-handling procedures, public accountability statements and notices of branch closures, all of which FCAC reviews to ensure compliance. FCAC may request Banks to submit additional information not addressed in this guide.Footnote 2
Failure to meet statutory filing requirements may lead to enforcement action.
FCAC expects Banks to designate a compliance liaison to interact with FCAC and ensure filing requirements are met. The compliance liaison is a senior official serving as the Bank’s main point of contact for market conduct obligations.
II. Purpose
This regulatory reporting guide provides details about specific information that Banks must file with FCAC. This guide complements FCAC’s Supervision Framework. However, it is not a substitute for the laws and regulations monitored by FCAC. When in doubt, please refer to the applicable legislation and regulations. Refer to the following resources to learn more about the:
- laws that govern your organization
- regulations that govern your organization
- codes of conduct that govern your organization
- public commitments that govern your organization
This guide covers the following topics:
- procedures for dealing with complaints
- complaint record submissions
- public complaints information
- reportable compliance issues
- notices of branch closures
- public accountability statements
- codes of conduct and public commitments
- reports by the committee designated to oversee market conduct obligations
III. FCAC’s use of regulatory reporting information
FCAC uses the information provided by Banks to monitor their compliance with applicable market conduct obligations and determine appropriate promotion, supervision, and/or enforcement actions.
The data FCAC receives serves additional functions, including but not limited to:
- promoting Banks to adopt policies and procedures in line with their market conduct obligations
- enhancing FCAC’s ability to supervise Banks, assess market conduct risk, and manage relationships
- prompting Banks to gather key details that will aid them with their own internal investigations and analyses of the root causes of potential breaches
- improving Banks’ control frameworks, which can lead to stronger compliance programs and reduce the likelihood of recurring breaches
- assisting FCAC in monitoring and evaluating trends and emerging issues that may have an impact on financial consumers
- identifying common industry issues that Banks require further guidance about, in the form of guidelines, bulletins, and rulingsFootnote 3
- identifying opportunities for policy discussions and collaboration with other government agencies, regulators, and stakeholders to foster a better understanding of financial products, services, and related issues
IV. Procedures for dealing with complaints
All Banks must have procedures in place to deal with complaints about the products and services they offer, sell, or provide, and about the manner in which they are offered, sold, or provided.
FCAC’s Guideline on Complaint-Handling Procedures for Banks and Authorized Foreign Banks sets out FCAC’s expectations with respect to how Banks implement the complaint-handling provisions in the Bank Act and Financial Consumer Protection Framework Regulations (FCPF Regulations).
As per the Bank ActFootnote 4 and FCPF Regulations, Banks must file a copy of their complaint-handling procedures with FCAC and make the procedures available as a brochure in their branches when products or services are offered in Canada. Banks must also post the procedures on their websites offering products or services in Canada, and provide them in writing to anyone who requests them. FCAC also expects Banks to ensure the procedures are easily accessible on all of the digital platforms they use.
Should a Bank change its external-complaints body, it must provide the Commissioner with a written notice at least 90 days in advance.Footnote 5
Banks must also refile a copy of their complaint-handling procedures when a significant change to their procedures has been made.Footnote 6
When someone submits a complaint, the Bank must retain a record of the complaint.Footnote 7 The record must be retained for at least seven years and contain:
- the original version of the complaint, if the complaint was made in writing
- the recording, transcript, or details of the complaint, if the complaint was made orally
- the name of the person who made the complaint
- the name of the person who requested or received the product the complaint is about
- the contact information provided by the person who made the complaint
- the date that the Bank received the complaint
- the product or service to which the complaint relates
- a description of the nature of the complaint that supplements the information captured by the classification of the complaint record
- the date that the complaint was resolved to the satisfaction of the person who made the complaint
- the date that the complaint was closed, if the complaint was not resolved to the satisfaction of the person who made the complaint
- a description of any actions that were taken by the Bank to resolve the complaint
- a description of any compensation provided
- confirmation that the Bank provided all required information to the person who made the complaint
V. Complaint record submission
Banks must submit a record of each complaint received (directly or referred to them) by a designated officer or employeeFootnote 8 to FCAC within 60 days after the end of each quarter, as outlined in the Bank Act and FCPF Regulations. The content of the record to be submitted to FCAC is outlined in section 627.44 of the Bank Act.
Classifications
The table below is a comprehensive list of products and services that Banks can attribute complaints with when reporting to FCAC. To satisfy the requirements under paragraph 627.44(g) of the Bank Act, Banks are required to use the following list:
Products and services
Array 1
- Account
- Credit card
- Debit card
- HELOC
- Insurance
- Investment
- Line of credit
- Loan
- Mortgage
- Prepaid card
- Other
Array 2
- Agreement
- Alerts
- Balance
- Cancellation
- Closure
- Collections
- Complaint handling
- Credit limit
- Creditor insurance
- Estate
- Fees / Charges
- Financial advisor services
- Interest
- Internet banking / Services
- Mobile phone banking / Services
- Opening
- Overdraft
- Payment
- Power of attorney
- Renewal
- Safety deposit box
- Statement
- Telephone banking / Services
- Teller services
- Transaction
- Transfer
- Other
FCAC’s expectations on fields that require a description
For certain requirements under section 627.44 of the Bank Act, Banks must provide a description of:
- the nature of the complaintFootnote 9
- actions taken to resolve a complaintFootnote 10
- compensation providedFootnote 11
The following tables provide examples about what information Banks should provide where a description is required:
Description of the nature of the complaint
Array 1: Account
Array 2: Fees / Charges
Description: Consumer complained that additional transaction fees of [$XX. XX] were charged to their chequing account on [date] when the account has a fixed fee of [$XX.XX/month] for unlimited transactions.
Array 1: Credit card
Array 2: Interest
Description: Consumer was unhappy that on [date] interest of [$XX.XX] was charged on their [name of credit card and type] when the balance had been fully paid off within the 21-day grace period.
Array 1: Mortgage
Array 2: Financial advisor services
Description: Consumer felt pressured by the financial advisor to take a fixed rate mortgage instead of a variable rate mortgage. Consumer indicated to their advisor their preference for a variable rate mortgage five times before the advisor relented and agreed.
Array 1: Other
Array 2: Safety deposit box
Description: Consumer complained that the annual safety deposit box fee was increased from [$XX.XX] to [$XX.XX] without being notified.
Description of actions taken to attempt to resolve a complaint
Array 1: Mortgage
Array 2: Financial advisor services
Description: The mortgage department began their investigation on [date]. The bank contacted the consumer at the home number on file on [date] and left a voicemail. A second attempt to contact the consumer was made on [date] and contact was made. The consumer was provided with an explanation by phone and a substantive written response was provided to the consumer on [date].
Array 1: Credit card
Array 2: Interest
Description: Consumer was contacted on [date] to provide further information. Consumer provided the requested information on [date]. Credit card operations began investigation on [date]. A substantive written response was provided to the consumer explaining the interest calculation and why there was an error on [date].
Description of compensation provided
Array 1: Account
Array 2: Fees / Charges
Description: Consumer was reimbursed [$XX.XX] in additional transaction fees on [date] and was provided with free banking for a year (valued at [$XX.XX] over the course of the year).
Array 1: Other
Array 2: Safety deposit box
Description: As a gesture of goodwill, the consumer was reimbursed the annual fee of [$XX.XX] on [date].
Required use of FCAC’s secure portal for complaint record submission
To efficiently receive complaints and satisfy the requirements of reporting elements required by section 627.44 of the Bank Act, FCAC requires each Bank to electronically submit a record of each complaint that has been received by or referred to a designated officer or employee using FCAC’s Secure Portal (the Portal).
All Banks are required to submit nil reports through the Portal, when applicable.
For more information on the usage of the Portal, please refer to:
- Annex A: FCAC Secure Portal – External User Guide
- Annex B: Quarterly Complaints Reporting: Submission Schema Reference
- Annex C: JSON Schema
Deadline to submit complaints
Banks are required to submit their complaint data to FCAC on a quarterly basis, within 60 days after the end of each quarter.
The following table sets out the submission deadlines:
Quarter | For period | Deadline |
---|---|---|
Q1 | April 1 to June 30 | August 29 |
Q2 | July 1 to September 30 | November 29 |
Q3 | October 1 to December 31 | March 1 |
Q4 | January 1 to March 31 | May 30 |
VI. Public complaints information
According to section 627.47 of the Bank Act,Footnote 12 Banks operating in Canada are obligated to make certain information available to the public on an annual basis. Additionally, paragraph 39 of FCAC’s Guideline on Complaint-Handling Procedures for Banks and Authorized Foreign Banks clarifies FCAC’s expectations of the information Banks must provide.
Banks must make this information available within 135 days after the end of their financial year on their websites that offer products or services in Canada. They must also provide or send the information in writing to any person who requests it.
In addition, FCAC expects Banks to report this information to the Commissioner within 135 days after the end of their financial year. Banks must also include the link to where this data appears on the Bank’s website.
VII. Reportable compliance issues
According to section 5.3 of FCAC’s Supervision Framework, Banks must submit reportable compliance issues to FCAC.
Definition
Banks must report compliance issues that meet the following three criteria:
- The issue must be a breach of a market conduct obligation.
- The issue would normally be reported to the Bank’s compliance division.
- The issue meets, at a minimum, one of the following:
- once detected by the Bank, it took longer or will take longer than 120 calendar days to fixFootnote 13 and remediateFootnote 14 the issue; or
- the issue affected or affects more than 250 consumersFootnote 15 ; or
- the issue was or is ongoing for more than 1 year before the Bank detected it
The compliance issue may have been identified through various means including, but not limited to:
- internal audits
- compliance or control reviews
- process or product design review
- a system change/enhancement
- a consumer complaint
For greater certainty, a reportable compliance issue must be reported to FCAC even though:
- consumers were not affected financially
- the issue was caused by an individual employee
If a compliance issue has already been reported to FCAC through the normal reporting of a reportable complaint, it should still be reported as a reportable compliance issue and linked to the initial report.
Required use of reportable compliance issues template
Each compliance issue must be reported to FCAC using Annex D: Reportable compliance issues template (PDF, 827 KB).
Deadline to file reportable compliance issues
Banks must submit any reportable compliance issue within 60 days of the compliance issue being reported to their compliance division.
VIII. Notice of branch closure
According to relevant legislation and regulations,Footnote 16 before closing a branch, ceasing to open retail deposit accounts, or disbursing cash to customers at a branch, Banks must notify FCAC, their customers, and the public.
This applies to all branches where:
- retail deposit accounts are opened through a natural person
- cash is disbursed to customers through a natural person
Deadline for providing a notice of branch closure
The timeframe to provide this notice varies according to:
- the location (urban or rural) of the branch in question. According to subsection 627.993 (1)(a) of the Bank Act,
- an urban areaFootnote 17 is a population centreFootnote 18 in Canada with a minimum population of 10,000 natural persons
- a rural area is a location in Canada outside of an urban area
- the distance to the closest deposit-taking branch in rural areas
The Commissioner must receive notices of branch closures at least:
- four months before the proposed closing date, if the branch is located in either:
- an urban area
- a rural area where another retail deposit branch is located within 10 km of the branch to be closed
- six months before the proposed closing date, if the branch to be closed is in a rural area and there is no other retail deposit branch located within 10 km of the branch to be closed
Content of the notice to the Commissioner
The notice sent to FCAC must include the following information:
- the location of the branch
- the date proposed for the closure of the branch or cessation of the activity
- alternative sites where, after the closure date, customers of the branch may obtain similar services to the financial services that were provided at the branch, or a telephone number customers may call to be informed of those sites
- the measures, if any, the Bank is taking to maintain any financial services available in the area served by the branch to the extent that particular information is available
- how the Bank may be contacted in respect of th e proposed closure of the branch or cessation of the activity
- how the Bank has consulted the community, as per FCAC’s Guideline 14
Additionally, Banks that are committed to the Code of Conduct for the Delivery of Banking Services to Seniors (PDF) must inform FCAC of any planned measures taken to meet Principle 6 of the Code as part of their Branch Closure notification or in subsequent communications.
Exceptions
Under certain circumstances, the notice of branch closure is not required. Please refer to the Bank ActFootnote 19 and FCPF Regulations.
IX. Public accountability statements
Please note that this section of the FCAC Reporting Guide does not apply to Authorized Foreign Banks.
According to the Bank ActFootnote 20 and FCPF Regulations, all Banks with equity of $1 billion or more must publish an annual statement describing their respective contributions and prescribed affiliates to the Canadian economy and society.
Prescribed affiliates are either:
- an entity that engages in a business that includes:
- issuing payment, credit or charge cards and, in cooperation with others including financial institutions, operating a payment, credit, or charge card plan, or
- making or refinancing loans or entering into any other similar arrangements for advancing funds or credit
- a financial institution with equity of less than $1 billion, other than foreign institutions that carry on business exclusively outside of Canada
Content of public accountability statements
Banks’ public accountability statements must include specific details about the period covered by the statement. For more information on public accountability statements, please refer to section 627.996 (1) of the Bank Act and FCPF Regulations.
Exceptions
A Bank may not be required to include certain information relating to a prescribed affiliate in its statement if it is published in a separate statement. Please refer to the Bank ActFootnote 21 and FCPF Regulations.
Disclosure of public accountability statements
Banks must disclose their public accountability statement by:
- informing their customers and the public within 135 days after the end of each period, by advertising, making public announcements, posting notices, mailing information, etc., about the means by which the statement is available to them
- providing the statement free of charge to any person who requests it
- posting the statement on their websites that offer products or services in Canada
Deadline for filing public accountability statements with the Commissioner
Banks must file this statement within 135 days after the end of their financial year.
X. Codes of conduct and public commitments
FCAC is responsible for promoting the adoption of policies and procedures designed to implement legislation, regulations, codes of conduct, and public commitments by Banks for monitoring Banks’ compliance with their obligations.
List of codes of conduct and public commitments
The Bank ActFootnote 22 requires Banks to disclose the codes of conduct they have adopted and public commitments they have made, by making them available:
- at each of their branches in Canada where they offer products and services
- at each of their points of service
- on each of their websites through which they offer products or services in Canada
- to any person who requests them
FCAC expects Banks to report the list of codes of conduct and public commitments to which the Bank adheres to FCAC by April 1 of each year.
Low-cost and no-cost accounts
Additional rules apply to Banks that have committed to providing low-cost Bank accounts and offering no-cost accounts with the same features as low-cost accounts to a wider range of eligible consumers. These Banks must provide:
- a copy of their low-cost and/or no-cost account features
- up-to-date information about these accounts
- the date the account features come into effect
Annual Report for the Code of Conduct for the Delivery of Banking Services to Seniors
Banks that have committed to the Code of Conduct for the Delivery of Banking Services to Seniors (PDF) must publish, at least annually, a report on:
- the steps taken to support each principle of the Code
- any other steps taken to improve the delivery of banking services to seniors
Each Bank must publish the report on its website within 135 days following the end of its financial year.Footnote 23 Banks will also need to provide a copy of the report to FCAC, who will compile and make the information available to the public.
XI. Board and committee reporting
Please note that this section of the FCAC Reporting Guide does not apply to Authorized Foreign Banks.
Section 195.1 of the Bank Act sets out reporting requirements for the Bank and its directors regarding the directors' (or Board’s) oversight of the Bank's compliance with consumer provisions.
Bank’s report to the CommissionerFootnote 24
A Bank must report to FCAC on the committee designated by the board as required under paragraph 157(2)(e) (the committee) and on its frameworkFootnote 25 for complying with consumer provisions. The report should include the items noted below as well as any other information the Bank deems relevant for consideration by FCAC in this regard:
- details on committee membership that demonstrate how it complies with subsections 195.1(1) and 195.1(2) of the Bank Act and a description of how the expertise, skills, experience, competencies, and perspectives of committee members allow the committee to effectively carry out its oversight responsibilities
- the mandate and responsibilities of the committee relating to its duties under subsection 195.1(3), and information on any other mandatesFootnote 26 or responsibilities this committee may have. This should include a description of any policies, processes, and procedures the committee follows that enable it to carry out its responsibilities related to the oversight of the Bank’s compliance with consumer provisions
- a description of the role of the committee within the Bank’s framework(s) for complying with consumer provisions, including:
- details on the relationship between the committee, senior management, independent oversight functions, and business line functions relating to compliance oversight
- details on the governance processes that support the work of the committee and senior management in terms of oversight
- examples of matters reported to the committee regarding compliance with consumer provisions or consumer matters generally. For example, this may include training programs, customer education programs, new resources employed to support the compliance framework for consumer provisions, relief measures, etc.
Deadline for filing the Bank’s report to the Commissioner
The first report must be filed with FCAC by January 31, 2023.
Banks that incorporated (or continued) subsequent to October 31, 2022, must provide this report within 90 days of incorporation.
Ad hoc reports
Banks must file ad hoc reports in a timely manner further to a change to the:
- framework for compliance with consumer provisions
- mandate or responsibilities of the committee
- frequency of committee meetings
- membership of the committee (e.g., total complements, departures, appointments)
Directors’ report to the CommissionerFootnote 27
The directors must report to FCAC on the committee’s activities during the preceding financial year in performing the duties under subsection 195.1(3) of the Bank Act. FCAC expects the report to include information (including attachments as supporting documentation) on:
- how often the committee met to review materials and discuss issues related to the Bank’s compliance with consumer provisions
- how often management or independent oversight functions reported to the committee on activities related to compliance with consumer provisions
- how the committee carried out its oversight of the Bank’s establishment and implementation of the framework for complying with consumer provisions
- a list of reports the committee received and reviewed regarding the Bank’s compliance with consumer provisions or consumer issues generally, along with a brief description of each report
- how the committee carried out its evaluation and challenge role related to the framework and its implementation to assure itself that the framework is appropriate and effective
- evidence that the committee exercised its challenge and oversight role related to the appropriateness of the framework (e.g., governance of the framework, its policies and procedures) and the effectiveness of its implementation. For example, this may include excerpts from the committee’s meeting minutes that demonstrate discussion and challenge regarding the framework, mitigating breaches of consumer provisions or internal policies and procedures, corrective actions, etc.
Deadline for filing the Director’s report to the Commissioner
The directors must file this report annually within 90 days following the end of the Bank’s financial year.
XII. Contact FCAC
If you have questions related to your Bank, please contact FCAC at compliance@fcac.gc.ca or the lead FCAC supervisor assigned to your Bank. Apart from the quarterly complaint reporting, all other required reports should be sent to this email address, in accordance with the deadlines stated above.
XIII. Annexes
Annex A: FCAC Secure Portal – External User Guide
Annex B: Quarterly Complaints Reporting: Submission Scheme Reference (PDF, 421 KB)
Annex D: Reportable compliance issues template (PDF, 239 KB)
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