Supervisory process regarding compliance with Cost of Borrowing and Credit Business Practices Regulations – January 2010

From: Financial Consumer Agency of Canada

On January 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 FCAC. To evaluate the compliance of every FRFE affected by these new regulatory requirements, the Commissioner requested that each one assess how it 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 how they complied with the new regulations. 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

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: