February 5, 2020
Ministry of Finance Statement
To ensure that Canadians benefit from protection that meets their needs, the Government of
Canada regularly reviews the financial sector regulatory framework.
The Government took concrete action to protect consumers in their dealings with banks in the
Budget Implementation Act 2018, No. 2. The legislation received Royal Assent in December
2018 and proposed over 60 new or enhanced measures to protect bank customers, including:
·
A requirement for banks to have policies in place to ensure consumers receive products
and services that are appropriate to their situation;
·

A new prohibition on banks providing misleading information to consumers; and

·
A new prohibition on banks exerting undue pressure on consumers when selling them
products or services
The new measures were based on findings from the Financial Consumer Agency of Canada’s
review of best practices for consumer protection and review of bank sales practices. In addition
to the information from these two reviews, the Department of Finance met with over 100
representatives from the provinces and territories, consumer groups, banks, and external
complaints bodies to discuss and refine the measures.
Implementation of these new measures will require supporting regulations to be developed as
well as revisions to the FCAC’s Supervision Framework.
The Department of Finance is currently consulting with consumer groups and industry on the
development of supporting regulations, and the necessary systems and procedural changes to
bring the new provisions into force, which will determine the timeline for regulatory
implementation.
In respect of debit cards, the Canadian Code of Practice for Consumer Debit Card Services
outlines industry practices and consumer and industry responsibilities, to help protect
consumers in their use of debit card services in Canada. Under the Code, Cardholders are not
liable for losses resulting from circumstances beyond their control. The FCAC is responsible for
monitoring compliance under the Code. It is also important to note that the Canadian Bankers
Association has committed, on behalf of its members, to applying the principles and provisions
of the Canadian Code of Practice for Consumer Debit Card Services to online transactions. As
such, a number of financial institutions have extended the requirements under the Code to
online transactions.