- new electronic alerts
- advance notice when it’s time to renew products and services
- separate agreements for optional products and services
- offering or selling products and services that are appropriate for your financial needs
- getting your express consent for all products and services
- broader protections against providing false or misleading information
- broader protections against taking advantage or applying undue pressure
- more effective and timely complaints handling
- requirement to provide refunds and credits (redress)
Canada’s new Financial Consumer Protection Framework
In 2018, the Government of Canada adopted legislation to modernize the Financial Consumer Protection Framework in the Bank Act. The Framework introduces new and enhanced protections to protect your banking rights and interests. The new and enhanced protections took effect on June 30, 2022.
The legislation also provided the Financial Consumer Agency of Canada (FCAC) with new powers to better protect you in your dealings with banks. FCAC’s new powers came into force in April 2020. They include the power to:
- impose a penalty of up to $10 million on banks per violation of their legal obligations
- direct banks to take actions to comply with their legal obligations
- direct banks to undergo a third-party, independent audit to comply with their legal obligations
The Framework addresses issues raised by FCAC in its reviews of banks. The reviews highlighted key areas where consumers of bank products and services could be better protected, and where the oversight of banks could be strengthened.
The Framework is also based on extensive consultations with stakeholders across Canada.
Related links
- Report on Best Practices in Financial Consumer Protection
- Domestic Bank Retail Sales Practices Review
- Industry Review: Bank Complaint Handling Procedures
- Industry Review: The Operations of External Complaints Bodies
