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FCAC bulletin on investigations of unauthorized credit and debit transactions

The Financial Consumer Agency of Canada (FCAC) has released a new bulletin to remind federally regulated financial institutions (FIs) of its expectations regarding unauthorized credit and debit card transactions. Thorough investigations expected The FCAC expects FIs to thoroughly investigate the circumstances before finding a cardholder liable for an alleged unauthorized transaction.  The key question is whether circumstances … Continue Reading

Government of Canada proposes new oversight of payment service providers

Overview On July 7, 2017, the Department of Finance of the Government of Canada (the Department) released a consultation paper (Paper) regarding a proposed new oversight framework for retail payments (New Framework).  The Paper states that retail payment service providers (PSPs) other than regulated financial services providers such as banks and payment card networks are … Continue Reading

Federal budget 2017 financial services highlights

The Government tabled Budget 2017 on March 22.  The financial services proposals are aimed at the following: Greater resiliency for the Canadian financial sector; A modernized deposit insurance framework that continues to protect the deposits of Canadians and promote financial stability; and Strengthened ability for Canada to combat money laundering and terrorist financing. Financial Sector … Continue Reading

The saga of the unnamed bank: FinTRAC issues a statement

In April 2016, Canadian news media reported that the Financial Transactions Reports Analysis Centre (FinTRAC) had levied a penalty of over $1 million against an unnamed Canadian bank for certain violations of its anti-money laundering requirements.  Since then, FinTRAC has continued to face criticism from the public and the media for its decision to withhold … Continue Reading

Financial services regulatory: 7 developments to watch in 2017

Happy 2017! Financial services regulation continued to be busy in Canada in 2016. We have prepared this shortlist of pending changes, developments and consultations to watch as we start 2017. 1.  New draft OSFI guideline: enterprise-wide model risk management OSFI released a new draft Guideline E-23 – Enterprise-Wide Model Risk Management on December 21, 2016. … Continue Reading

Bank Act financial consumer protection amendments delayed

The proposed amendments to the Bank Act (Canada) (the Amendments) which would add a Financial Consumer Protection Framework (the Framework) (described in our recent post) will be withdrawn from Bill C-29. Bill C-29 passed third reading in the House of Commons and is currently before the Senate of Canada. News reports indicate that the Finance Minister, Bill Morneau, agreed to remove … Continue Reading

Bank Act Financial Consumer Protection Framework passes third reading in House of Commons

Bill C-29, Budget Implementation Act, 2016, No. 2, (Bill C-29) passed third reading in the House of Commons on December 6, 2016. Once passed by the Senate and brought into force, Bill C-29 will amend the Bank Act (Canada) (the Bank Act) to enact the long awaited Financial Consumer Protection Framework that was promised by … Continue Reading

Targeted Review of Deposit Insurance Launched

On September 16th, the Department of Finance announced the launch of a public consultation on the deposit insurance regime for banks, federally regulated trust and loan companies and certain provincially regulated institutions.  There is no indication when the Government proposes to complete its review but comments are requested by November 30th. The Consultation Paper states … Continue Reading

Government to Conduct Further Assessment on Interchange Fees

The Minister of Finance issued a statement on September 14th on the status of each of Visa and MasterCard’s commitments to reduce the fees merchants are charged to accept credit cards (Interchange Fees).  The statement acknowledges the independent audit findings of both Visa and MasterCard indicating that they have each met their commitments to reduce … Continue Reading

Government launches 2019 financial sector review

On August 26th, the federal Department of Finance launched a review of the legislation governing banks, insurance companies and trust companies under federal jurisdiction by issuing an initial consultation paper. The initial paper sets out some key facts relating to the sector and comments on trends that are currently impacting and are expected to continue … Continue Reading

Ontario: Proposed amendments to increase protections for financial consumers

The Government of Ontario has recently introduced proposed amendments to collection agency, consumer protection and payday loan legislation. Bill 156 – An Act to amend various Acts with respect to financial services (Bill 156) went through first reading in the Ontario legislature on December 9, 2015. The following proposed amendments are noteworthy: Collection and Debt … Continue Reading

Ontario to introduce new regulations for alternative financial services providers

The Government of Ontario announced on December 9, 2015 that it will introduce legislation to increase protections for consumers who use high-cost alternative financial services, such as payday loans, instalment loans, rent-to-own services and cheque-cashing services and to better protect those with debts in collection. The legislation has not yet been introduced.  The announcement provides … Continue Reading

OSFI Legislation and Approvals Seminar

Each year, the Office of the Superintendent of Financial Institutions (OSFI) holds a seminar in Toronto to update both in house lawyers and outside counsel on recent activities undertaken by the Legislation and Approvals Division. In addition to administering applications for approvals under the Bank Act, Trust and Loan Companies Act and Insurance Companies Act, … Continue Reading

Waiting game continues following election of new federal government

Last October 19th, a new federal Liberal government was elected ending nine years of rule by the Conservative Party.  With the election of a new government comes the appointment of a new Minister of Finance with responsibility for the federal financial services sector, including all banks and most trust companies and insurance companies in Canada.  … Continue Reading

Timing of the federal regulatory reforms in doubt

As reported in our post on April 21st, the federal budget speech released last April either announced or provided updates on a number of important regulatory initiates relating to the federal financial services sector.  Given the timing of the federal election this fall, it now appears likely that these initiatives will not be brought forward … Continue Reading

Economic Action Plan 2015 – Changes to Financial Services Regulation

On April 21, 2015, the Government of Canada tabled the federal budget, Economic Action Plan 2015 (Budget 2015) in the House of Commons. In Budget 2015, the Government promised a number of regulatory changes that will be relevant to financial institutions. The changes include: A new consumer protection framework for banks and specific targeted consumer … Continue Reading

Government announces new requirements for credit and debit cards and launches review of retail payment systems

On April 13, the federal government made two important announcements relating to the regulation of payments and payments systems. First, an update was released to the Code of Conduct for the Credit and Debit Card Industry in Canada (Code of Conduct). In addition, the Government announced the launch of a consultation on the oversight of … Continue Reading