On April 30, amendments to the Financial Consumer Agency of Canada Act (FCAC) and certain amendments to the Bank Act related to the new federal financial consumer protection framework (Bill C-86) came into force.
Key Changes
New purpose clause:
In carrying out its consumer protection mandate, the FCAC must now take into account a bank's need to effectively manage its business.
Mandatory naming:
The Commissioner is now required to name all entities who commit violations.
Increased penalties;
A new maximum penalty of $10 million per violation can be now be imposed on financial institutions and payment card network operators who commit violations.
Special audits:
If required for the purposes of administering the FCAC Act, the Commissioner may direct banks to undergo and bear the costs of special audits.
Directions:
The Commissioner may also direct a bank or person to comply with a compliance agreement, a consumer provision or to perform any other act that in the opinion of the Commissioner is necessary to perform.
No date has been released as yet for the coming into force of the remaining amendments. Follow my blogs for a comprehensive review of the new framework and the changes it will likely trigger.
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