The federal government in Ottawa has introduced new rules on how Canada’s big banks are to treat their customers.
The rules are contained in an 800-page budget-implementation bill that was tabled in Ottawa on Monday afternoon, and outline how banks are to interact with customers, including that customers be given advance notice of a retail branch closing, and that express consent be given before the banks provide customers with any products or services.
"This legislation is the next step in making sure that every Canadian has an equal and fair chance at success," said Finance Minister Bill Morneau in a written news release, which noted the measures are aimed at advancing "the rights and interests of consumers."
One section of the bill says that banks would not be able to require customers to make a minimum deposit or maintain a minimum balance on an account. The legislation also will "strengthen the mandate of the Financial Consumer Agency of Canada (FCAC) and grant additional powers to that Agency." The FCAC is tasked with ensuring federally regulated financial institutions abide by consumer-protection rules.
The legislation follows a report from the FCAC earlier this year that highlighted a sales-focused culture at Canada`s six largest banks. The report warned that that culture had potentially increased the risk of mistreating customers. The new legislation also subjects foreign banks to stronger rules aimed at protecting the Canadian public.
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