Supervisory process for federally regulated financial entities – September 2010
On September 1, 2010 new legislative requirements came into effect requiring federally regulated financial entities (FRFEs) to disclose additional information pertaining to various consumer provisions monitored by Financial Consumer Agency of Canada (FCAC). To evaluate the compliance of every FRFE affected by these new regulatory requirements, the Commissioner requested that each one assess how they met these new requirements.
The new legislative requirements were set out in the newly introduced Credit Business Practices Regulations, which limit certain financial institution credit card business practices that are not beneficial to consumers; and the amendments to the Cost of Borrowing Regulations, which continue to improve disclosure and transparency for consumers of lending products.
Following the coming-into-force date, FCAC’s Compliance and Enforcement Branch sent a supervisory questionnaire to all FRFEs affected by the new provisions, asking them to report the extent to which they complied with the new regulatory requirements. FCAC found that this supervisory process has enabled it to proactively address systemic procedural and material compliance deficiencies and thus help minimize potential negative impacts on consumers.
Supervisory process results
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