FINA Committee Report

LIST OF RECOMMENDATIONS

RECOMMENDATION 1

Merger proposals by Canadian banks and bank holding companies with more than $5 billion in equity continue to be subject to review by the Competition Bureau to assess competition concerns, by the Office of the Superintendent of Financial Institutions to assess prudential concerns and by the House of Commons Standing Committee on Finance to assess public interest concerns. To ensure that the review occurs with the assistance of all relevant information, the Competition Bureau and the Office of the Superintendent of Financial Institutions should complete their reviews as expeditiously and thoroughly as possible in order that their analysis is available to assist in the public hearing process.

RECOMMENDATION 2

The list of items to be included in the Public Interest Impact Assessment, as identified in the Merger Review Guidelines, be retained. In completing the Assessment, merger applicants should have due regard for the clarification provided by the House of Commons Standing Committee on Finance in the areas of access and long-term growth for Canada. Moreover, the ability of the Minister of Finance to request, and of the merger applicants to provide, additional information should continue to exist.

RECOMMENDATION 3

Merger applicants provide no less than an equivalent level and range of services to all Canadians before and after the merger, bearing in mind technological change and changing consumer requirements. Moreover, the merged entity should pay particular attention to ensuring access for disabled Canadians, seniors, low-income individuals and Aboriginal Canadians, as well as to ongoing community and charitable involvement efforts.

RECOMMENDATION 4

Merger applicants demonstrate the manner in which the merged entity would increase access to capital for small and medium-sized businesses.

RECOMMENDATION 5

Merger applicants outline the manner in which the merged entity would provide retail financial services at a comparable or lower price, on balance, during a transition period of up to three years.

RECOMMENDATION 6

Merger applicants outline the manner in which the merged
entity would ensure service to rural and remote communities
where they are providing financial services at the time of the merger application.

RECOMMENDATION 7

The federal government, having due regard for jurisdictional issues, take immediate steps to remove any impediments to the emergence and/or growth of credit unions in Canada.

RECOMMENDATION 8

Merger applicants, to the greatest extent possible, ensure that job losses are minimized. Moreover, training, relocation and outplacement counselling should be provided by the merged entity, and employment reductions should be accommodated through attrition and early retirement incentives. In the event of involuntary job loss, compensation should be consistent with that provided by other financial service providers in similar circumstances.

RECOMMENDATION 9

Merger applicants optimize head office and executive activities, and high-quality employment opportunities, in Canada.

RECOMMENDATION 10

Merger applicants, when preparing their business case as required by the Public Interest Impact Assessment, indicate the manner in which the merger would benefit the domestic market and enhance their international competitiveness.

RECOMMENDATION 11

The federal government undertake ongoing review of the legislative, regulatory and policy environments of the financial services sector to ensure that barriers to entry and expansion are eliminated or minimized, that the widely held ownership provisions which preclude foreign control continue, and that the sector is characterized by a level of competition that will continue to provide Canadians and Canadian businesses with high-quality, appropriately priced services.