FINA Committee News Release
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Standing Committee on Finance
Comité permanent des finances
For immediate release
House Finance Committee Adopts Another Motion about Bank Sales Practices
Ottawa, June 21, 2017 -
On 3 May 2017, the House of Commons Standing Committee on Finance adopted a motion to examine the practices of Canada’s Schedule I banks in relation to the sale of financial products and services to their customers. In particular, the Committee invited witnesses to discuss the four topics identified in the motion: sales practices and incentives for employees; opportunities for redress; codes of conduct; and penalties for breaches of codes of conduct.
“On June 5th, 7th and 12th, the Committee held public hearings during which we heard from the Financial Consumer Agency of Canada, as well as from two former financial sector employees and representatives of the Small Investor Protection Association, the Canadian Bankers Association and the country’s six largest banks,” said the Honourable Wayne Easter, P.C., M.P., Chair of the Committee. “As well, on June 5th, we had an in camera briefing from the Office of the Superintendent of Financial Institutions, the Department of Finance and the Financial Consumer Agency of Canada in order to discuss existing regulatory and oversight mechanisms.”
Mr. Easter continued: “During our hearings, the Committee learned that the Financial Consumer Agency of Canada is currently conducting a thorough investigation into the extent to which Canada’s Schedule I banks are complying with the Bank Act and certain codes of ethics, as well as the ways in which sales goals and incentives are contributing to practices that result in poor outcomes for their customers. We were told that the investigation should yield initial findings by the end of 2017, and should be completed by June 2018.”
Mr. Easter concluded: “The Finance Committee continues to be interested in this topic and, on June 14th, adopted a motion regarding a meeting with the Financial Consumer Agency of Canada so that it can present its findings to the Committee. According to the motion, if required based on these findings, the country’s six largest Schedule I banks will be invited to appear in order to discuss the measures that they will take to implement any recommendations that the Financial Consumer Agency of Canada may make.”
Information on the Committee’s study of consumer protection and oversight in relation to Schedule I banks can be found on the Committee’s website.
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