Canadian Financial Services Statutes – Consumer Protection Updates

October 28, 2020 | by Wong Fleming

Canadian consumer protection standards have always been relatively pro-consumer; with the recent updates to various financial services statutes, these rules have only been made more onerous. These updates that have been introduced over the past two years aim to even the playing field between big financial institutions and their customers.

In 2018, two Budget Bills were introduced by the Federal government, which brought about various amendments to a number of financial services statues, including three of the most important federal laws governing financial institutions and finance in Canada: the Bank Act, the Trust and Loans Companies Act and the Insurance Companies Act.

As the financial tableau grows more complex, maintaining the consumers’ trust becomes increasingly important. With those two Budget Bills, the government introduced the Financial Consumer Protection Framework – an amalgamation of provisions designed to increase consumer trust in financial institutions. This framework is primarily established through Part XII.2 of the Bank Act.

Under the recently updated rules, banks will be required to create, implement, and train their employees with regard to, consumer protection policies and procedures in order to ensure that services offered to individuals are appropriate for the consumers’ financial needs and circumstances.

About Jordan W. Charness

Jordan W. Charness is Of Counsel and leads the firm’s Canadian office. Listed in Canadian Who’s Who, he has been practicing since 1985. He is an accomplished trial lawyer who has successfully represented some of the world’s largest companies before the courts. His legal advice is sought after by clients at all stages of their legal situations. An expert negotiator, his advice has solved many of his clients’ problems before they escalated into court litigation.

Whether the client is a large corporation, small or medium size business or private individual, he explains your rights in a way that you can understand perfected in over 18 years of giving legal advice live on a weekly basis on Montreal’s top radio stations. He is currently the on-air legal analyst appearing live at the anchor desk of CTV television. He wrote a weekly column in The Montreal Gazette, Canada’s oldest daily newspaper and is the author of hundreds of published articles and a best-selling book. He is a professor of law (part time) at John Abbot College and is also a Member of the Board of the Shriners Hospital for Children.