Ottawa, July 18, 2007 The Financial
Consumer Agency of Canada
(FCAC) has indicated, in its Business Plan for 2007-09, that it intends to build
on the success of its consumer education activities and its regulatory oversight
of financial institutions to further strengthen consumer protection and education.
"Since it was established, in 2001, the Agency has made considerable strides
in consumer education. We have created a number of plain-language products and
interactive tools, which provide consumers with information about their rights
and responsibilities when dealing with federally regulated financial
institutions," said FCAC's Acting Commissioner Jim Callon.
"As a regulator, FCAC has made a real impact in the marketplace by taking
action to improve financial institutions' compliance with consumer protection
laws, voluntary codes of conduct and public commitments. As a result, hundreds
of thousands of consumers have benefitted directly from changes made to the
financial system," added Callon.
Going forward
Over the next two years, FCAC will expand its consumer education activities
by creating new educational materials and continuing to improve its Web site.
The Agency will also continue to enhance its risk-based compliance framework to
maintain a fair, transparent approach to supervising federally regulated
financial institutions, while ensuring that it is addressing important issues at
the industry level, for the benefit of all Canadians.
FCAC will continue to work with federally regulated financial institutions to
improve their knowledge of their obligations to consumers. To accomplish this,
the Agency will deliver compliance workshops, which it recently developed, to
interested financial institutions.
Also, in response to Bill C-37, FCAC's Compliance and Enforcement Branch will
assess, plan and implement the changes required to the Agency's compliance
framework, procedures, processes and systems.
Financial literacy
Recognizing the need in Canada for a financial literacy framework, the
federal government in its budget of March 19, 2007 allocated $3
million to FCAC to develop and implement a national financial literacy program.
This funding will enable FCAC to develop instructional materials for financial
literacy education especially for young people and facilitate
the sharing of these materials and information with other financial education
partners.
"The Agency will lay the groundwork for this project by assessing the
momentum and commitment that exist in public-sector, voluntary and
private-sector organizations to design and develop a financial literacy
framework. The Agency has already begun national discussions on this initiative
and will report further on it in the coming months," explained Acting
Commissioner Callon.
Another related priority for the Agency will be to organize a symposium, in
2008, to develop and support a national financial literacy program. This will be
a follow-up to the first national symposium that FCAC spearheaded in 2005 on
financial capability, which examined policy options for helping Canadians
understand, manage and improve their financial situation.
"In FCAC's view, the objective of an effective financial literacy framework
is to ensure that all Canadians have the opportunity and the tools to become
aware of financial opportunities, to know where to go for help, to make informed
choices and to take effective action to improve their financial well-being,"
added Callon.
"With its dual mandate of protecting consumers and providing them with
timely, objective information, the Agency fulfills an important function, which
I believe is
indispensable to a healthy, competitive and fair marketplace. Our Business Plan
provides a general road map for our plans and priorities over the coming two
years and identifies the key activities that we will implement to protect
Canadian consumers and ensure that they have the information and skills they
need to participate actively in and strengthen the financial sector," added
Callon.
To consult FCAC's Business Plan for 2007-09, visit the Agency's Web site at:
www.fcac.gc.ca. The Agency also publishes a variety of useful
publications that consumers can download from its Web site, or order free of
charge in print form, by calling FCAC's Consumer Contact Centre, toll-free, at:
1-866-461-3222.
FCAC ensures compliance with the consumer protection laws and monitors the
codes of conduct and public commitments that apply to banks and federally
incorporated trust, loan and insurance companies. FCAC also provides consumers
with accurate, objective information about financial products and services, and
informs Canadians of their rights and responsibilities when dealing with
federally regulated financial institutions.
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Media contacts:
Martine Bélanger
Michael Olson
Communications Officer
Communications Officer
613-941-8982
613-941-4168
belanger.martine@fcac.gc.ca
olson.michael@fcac.gc.ca
