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{{redirect|FCAC|the arts centre in Melbourne, Australia|Footscray Community Arts Centre}}
{{Multiple issues|
{{advert|date=January 2013}} {{use mdy dates|date=September 2024}}
{{Infobox government agency
{{coi|date=January 2013}}
| agency_name = Financial Consumer Agency of Canada
{{primary sources|date=January 2013}}
| nativename = Agence de la consommation en matière financière du Canada
}}
| logo = File:FCAC ACFC logo.svg
{{Infobox Government agency
| formed = 2001
|agency_name = Financial Consumer Agency of Canada|nativename = Agence de la consommation en matière financière du Canada |logo = FCAC_English_avatar.jpg
| jurisdiction = ]
|logo_Alignment = center
| headquarters = ], ]
|logo_Size = 128
| employees = 209
|logo_caption = Avatar of the Financial Consumer Agency of Canada for use in social media
|formed = 2001 | budget = $45.9M (CAD)
| chief1_name = Shereen Benzvy Miller
|jurisdiction = ]
| chief1_position = ]
|headquarters = ], ]
| website = {{URL|www.canada.ca/en/financial-consumer-agency.html}}
|employees = 54
|budget = $10.7M (CAD)
|chief1_name = Ursula Menke
|chief1_position = Commissioner
|website =
}} }}


'''The Financial Consumer Agency of Canada''' (FCAC) is an independent ] of the ], the dual mandate of which is to ensure that federally regulated financial entities comply with legislation and industry commitments intended to protect consumers; and to deliver information about financial products, services and issues to consumers and help them build financial skills. '''The Financial Consumer Agency of Canada''' ({{langx|fr|Agence de la consommation en matière financière du Canada}}, FCAC) is an agency of the ] that enforces ] legislation, regulations and industry commitments by federally regulated financial entities. It also provides programs and information to help consumers understand their rights and responsibilities when dealing with financial institutions and promotes financial literacy.


==Mandate==
The Agency was established in 2001 by the federal government to strengthen oversight of consumer issues and expand consumer education in the financial sector. In July 2010, FCAC was also tasked with the oversight of ] and their commercial practices.
FCAC has a dual mandate, set out in the ''Financial Consumer Agency of Canada Act''.<ref name=":0">{{cite web|url=http://laws-lois.justice.gc.ca/eng/acts/F-11.1/index.html|title=Financial Consumer Agency of Canada Act|access-date=February 10, 2013}}</ref> Broadly, these two main elements are:

== Mandate ==
{{copypaste|section|url=http://www.fcac-acfc.gc.ca/eng/about/index-eng.asp|date=February 2013}}
FCAC has a dual mandate, set out in the Financial Consumer Agency of Canada Act. Broadly, these two main elements are:
* ensuring and enforcing compliance by the financial sector with federal legislation and regulations, as well as voluntary codes of conduct and public commitments * ensuring and enforcing compliance by the financial sector with federal legislation and regulations, as well as voluntary codes of conduct and public commitments
* promoting greater ] by informing consumers about their rights and responsibilities when dealing with financial entities and payment card network operators. * promoting greater financial literacy by informing consumers about their rights and responsibilities when dealing with financial entities and payment card network operators.

Under its compliance mandate, FCAC is responsible for: Under its compliance mandate, FCAC is responsible for:
* ensuring that the market conduct of federally regulated financial entities complies with federal legislation and regulations * ensuring that the market conduct of federally regulated financial entities complies with federal legislation and regulations
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Under financial literacy, FCAC is responsible for: Under financial literacy, FCAC is responsible for:
*      helping consumers better understand financial products and services, as well as their rights and responsibilities when dealing with financial institutions.
* informing consumers about their rights and responsibilities when dealing with financial entities and about the obligations of payment card network operators to consumers and merchants
* providing timely and objective information and tools to help consumers understand, and shop for, a variety of financial products and services *     providing tools and resources to help Canadians understand and manage their finances.
* monitoring and evaluating trends and emerging issues that may have an impact on consumers of financial products and services. *     monitoring and evaluating trends and emerging issues that may affect consumers of financial products and services.
*     developing educational programs and workshops, in collaboration with organizations across the country, to help Canadians manage their finances and make informed financial decisions. ----


==Scope==
FCAC monitors and supervises financial institutions and external complaints bodies that are regulated under federal legislation. These entities include all banks and federally incorporated or registered insurance, trust and loan companies, retail associations, federal credit unions and external complaints bodies. FCAC also supervises payment card network operators to determine whether they are in compliance with the provisions of the ''Payment Card Networks Act''.<ref name=":1">{{cite web|title=Payment Card Networks Act|url=http://laws-lois.justice.gc.ca/eng/acts/P-4.3/page-1.html|access-date=February 12, 2013}}</ref>


FCAC does not regulate foreign bank representative offices, fraternal benefit societies or cooperative credit associations.
== Scope ==
{{copypaste|section|url=http://www.fcac-acfc.gc.ca/eng/about/index-eng.asp|date=February 2013}}
FCAC monitors and supervises ] and external complaints bodies that are regulated under federal legislation. These entities include all ]s and federally incorporated or registered ], ] and loan companies, retail associations, federal credit unions and external complaints bodies.


A complete list of federally regulated financial institutions is available from the ] (OSFI).
FCAC does not regulate foreign bank representative offices, ] or ].

FCAC also supervises ] to determine whether they are in compliance with the provisions of the Payment Card Networks Act.

A complete list of federally regulated financial institutions is available on the website of the ].


As a regulatory agency, FCAC can exercise its enforcement powers to ensure that federally regulated financial entities comply with the consumer provisions of the various federal acts relating to financial services, including: As a regulatory agency, FCAC can exercise its enforcement powers to ensure that federally regulated financial entities comply with the consumer provisions of the various federal acts relating to financial services, including:
* the ]<ref>{{cite web|title=Bank Act|url=http://laws-lois.justice.gc.ca/eng/acts/B-1.01/FullText.html|access-date=February 8, 2013}}</ref>

* the ''Insurance Companies Act''<ref>{{cite web|title=Insurance Companies Act|url=http://laws-lois.justice.gc.ca/eng/acts/I-11.8/page-1.html|access-date=February 1, 2014}}</ref>
* the ]
* the ''Trust and Loan Companies Act''<ref>{{cite web|title=Trust and Loan Companies Act|url=http://laws-lois.justice.gc.ca/eng/acts/T-19.8/index.html|access-date=February 7, 2014}}</ref>
* the Insurance Companies Act
* the ''Cooperative Credit Associations Act''<ref>{{cite web|title=Cooperative Credit Associations Act|url=http://laws-lois.justice.gc.ca/eng/acts/C-41.01/|access-date = February 7, 2014}}</ref>
* the Trust and Loan Companies Act
* the Co-operative Credit Associations Act * the ''] Act''
* the Green Shield Canada Act * the ''Payment Card Networks Act''<ref name=":1" />
* the ''Financial Consumer Agency of Canada Act''.<ref name=":0" />
* the Payment Card Networks Act
* the Financial Consumer Agency of Canada Act.


In cases of contravention or non-compliance with legislation, FCAC notifies the federally regulated financial entity of a violation. Depending on the severity and frequency of the problem, the Agency may also: In cases of contravention or non-compliance with legislation, FCAC notifies the federally regulated financial entity of a violation. Depending on the severity and frequency of the problem, the Agency may also:
* seek a commitment from the financial entity to remedy the issue within a short time * seek a commitment from the financial entity to remedy the issue within a short time
* impose a monetary penalty * impose a monetary penalty
* impose ] * impose criminal sanctions
* take other actions as necessary. * take other actions as necessary.



==History== ==History==
The Agency was established in 2001 by the federal government to strengthen oversight of consumer issues and expand ] in the financial sector.
In December 1996, the ] launched the Task Force on the Future of the Canadian Financial Services Sector, one of several initiatives following extensive debate and consultation on reform of the financial sector.


FCAC’s creation was one in a series of initiatives resulting from an extensive period of study and public consultation on financial sector reform.
In September 1998, the Task Force presented the federal government with its report, ''Change, Challenge, Opportunity'' (known as the MacKay Report). One of the Task Force’s findings was that “the current framework for consumer protection is not as effective as it should be in reducing the information and power imbalance between institutions and consumers.” Two parliamentary committees reviewed the Task Force Report, held public consultations across the country and presented their own recommendations.


In December 1996, the Government of Canada launched the Task Force on the Future of the Canadian Financial Services Sector, one of several initiatives following extensive debate and consultation on reform of the financial sector.
A broad consensus on ways to improve the financial sector emerged through this process. In June 1999, the government released a policy paper, ''Reforming Canada’s Financial Services Sector: A Framework for the Future'', containing 57 reform measures. Among them was a proposal to create a financial consumer agency to oversee consumer interests and improve consumer protection. Legislation to implement the reform package was passed on June 14, 2001.


In September 1998, the Task Force presented the federal government with its report, ''Change, Challenge, Opportunity'' (known as the MacKay Report). One of the Task Force’s findings was that "the current framework for consumer protection is not as effective as it should be in reducing the information and power imbalance between institutions and consumers."<ref>{{cite book|last=Task Force on the Future of the Canadian Financial Services Sector|title=Change, Challenge, Opportunity: Report of the Task Force|year=1998|publisher=Department of Finance Canada|location=Ottawa, Ontario|isbn=0-662-27133-5|pages=260}}</ref> Two parliamentary committees reviewed the Task Force Report, held public consultations across the country and presented their own recommendations.
The Financial Consumer Agency of Canada opened its doors in 2001 under the ''Financial Consumer Agency of Canada Act'', to protect and inform consumers about financial services.


A broad consensus on ways to improve the financial sector emerged through this process. In June 1999, the government released a policy paper, ''Reforming Canada’s Financial Services Sector: A Framework for the Future'',<ref>{{cite web|last=Department of Finance Canada|title=Reforming Canada's Financial Services Sector -- A Framework for the Future|url=http://www.fin.gc.ca/finserv/docs/finserv1-eng.asp|work=Task Force on the Future of the Canadian Financial Services Sector|publisher=Government of Canada|access-date=1 February 2013|archive-url=https://web.archive.org/web/20130509101314/http://www.fin.gc.ca/finserv/docs/finserv1-eng.asp|archive-date=9 May 2013|url-status=dead}}</ref> containing 57 reform measures. Among them was a proposal to create a financial consumer agency to oversee consumer interests and improve consumer protection. Legislation to implement the reform package was passed on June 14, 2001.
The first commissioner (2001–2006) was ], a former ] executive and ] ] from ]. The current Commissioner is Ursula Menke.<ref>http://www.fcac-acfc.gc.ca/eng/about/commissioner/commissionerbio-eng.asp</ref>


The Financial Consumer Agency of Canada opened its doors in 2001 under the ''Financial Consumer Agency of Canada Act''.
In its first year, FCAC established a website and a call centre for consumers to make complaints and ask questions about their rights and responsibilities regarding financial products and services. It also produced its first publications, ''Credit Cards and You'' and the ''Consumer’s Guide to Basic Banking Services''.


In its first year, FCAC established a website and a call centre for consumers to make complaints and ask questions about their rights and responsibilities regarding financial products and services.
In 2002, FCAC produced its compliance framework, which established the standards and norms against which the Agency determined whether federally regulated financial institutions were compliant with all applicable legislation and regulations. The Agency also completed its first annual examination of the consumer practices of all federally regulated financial institutions.


In 2007, the Government of Canada provided FCAC with an additional $3 million for the creation of the Financial Literacy Initiative.
In 2003, FCAC hosted the first International Forum on Financial Consumer Education and Protection, in Ottawa.


In 2009, new federal legislation gave FCAC oversight over payment card network operators.
2003 was also the year the Agency began publishing all the Commissioner’s Decisions online, and saw the publication of the first Commissioner’s Decision to consider plain-language consumer provisions. That year, it completed two industry reviews: on the disclosure of ] interest rates on applications forms; and on internal ].


On July 11, 2010, amendments to the ''Financial Consumer Agency of Canada Act'' further expanded FCAC’s role in four areas:
In 2004, a new voluntary ''Code of Conduct for the Debit Card Industry'' came into use, and became incorporated into FCAC’s standards. That year, FCAC noticed a rising trend of financial fraud being committed against Canadian financial consumers and assigned more resources to informing Canadians about how to identify fraud and protect themselves against scams.
# increased ability to do research, field testing and stakeholder engagement to provide information to the government on financial consumer trends and emerging issues
# expanded consumer information role to cover all matters related to protecting consumers of financial products and services
# responsibility for overseeing the Payment Card Networks Act (PCNA) and any related regulations
# promoting public awareness of the PCNA and the Code of Conduct for the Credit and Debit Card Industry in Canada.


As a result of amendments to the ''Bank Act'' in 2010 which provided for federally regulated credit unions, FCAC became responsible for supervising and monitoring such credit unions’ compliance with applicable legislation and regulations.
FCAC also added its first Mortgage Calculator to its website, allowing consumers to enter their own details to determine what kind of mortgage they could qualify for, and the monthly payments.


In August 2010, the ''Code of Conduct for the Credit and Debit Card Industry'' came into force. FCAC opened its new Research Branch as part of its expanded mandate.
The following year, FCAC added a complaint-handling database to its website and began publishing Consumer Alerts to warn consumers about emerging trends like ], a form of ].


November 2011 was the first Financial Literacy Month. FCAC, together with a group of community organizations called the Financial Literacy Action Group (FLAG), organized workshops and other events across Canada to promote financial literacy among consumers.In March 2012, the Parliament of Canada officially designated November as Financial Literacy Month in Canada.
In 2005, FCAC issued a stating that financial institutions must make equal, full disclosure to all borrowers of a loan, including co-borrowers.

That year, FCAC created an online tool for consumers to compare and select credit cards. FCAC released its most popular publication, ''Understanding Your Credit Report and Credit Score''.

In June 2005, along with ] and Public Research Initiative, FCAC co-hosted an international conference entitled Canadians and Their Money: A National Symposium on Financial Capability.

In 2006, FCAC partnered with ] and the non-profit group Éducaloi to create a sample credit card application from written in clear, simple language.

FCAC’s first Commissioner, ], retired in 2006. Ursula Menke became the second Commissioner in early 2007. That year, the ] provided FCAC with an additional $3 million for the creation of the Financial Literacy Initiative.

In 2008, joined the Agency as Deputy Commissioner. FCAC produced two major initiatives in partnership with other organizations. With the ] (BCSC), the Agency developed and launched The City: A Financial Life Skills Resource. In partnership with ] and the Joint Forum of Financial Market Regulators, FCAC hosted Reaching Higher: Canadian Conference on Financial Literacy in Ottawa. 2008 was also the year FCAC began publishing the Commissioner’s Decisions in their full text, barring minimal edits to protect confidential information.

In 2009, new federal legislation gave FCAC oversight over ]. Under its ] mandate, FCAC designed and launched Financial Basics, a series of financial literacy workshops aimed at young adults, in partnership with Ontario’s ] (IEF), ] in ], and financial author Ellen Roseman. FCAC also developed the Clear Language and Presentation Principles and Guidelines for the financial industry.

FCAC’s Financial Literacy Team won a Public Service Award of Excellence for the previous year’s launch of The City in 2009.

On July 11, 2010, amendments to the Financial Consumer Agency of Canada Act further expanded FCAC’s role in four areas:
# 1. increased ability to do research, field testing and stakeholder engagement to provide information to the government on financial consumer trends and emerging issues
# 2. expanded consumer information role to cover all matters related to protecting consumers of financial products and services
# 3. responsibility for overseeing the Payment Card Networks Act (PCNA) and any related regulations
# 4. promoting public awareness of the PCNA and the Code of Conduct for the Credit and Debit Card Industry in Canada.

As a result of amendments to the Bank Act in 2010 which provided for federally regulated credit unions, FCAC became responsible for supervising and monitoring such credit unions’ compliance with applicable legislation and regulations.

In August of 2010, the Code of Conduct for the Credit and Debit Card Industry came into force. FCAC opened its new Research Branch as part of its expanded mandate.

In 2011, the Task Force on Financial Literacy released its recommendations. The Commissioner of FCAC also became the interim Chair to Financial Consumer Protection Network (FinCoNet) in May 2011.

November 2011 was the first Financial Literacy Month. FCAC, together with a group of community organizations called the Financial Literacy Action Group (FLAG), organized workshops and other events across Canada to promote financial literacy among consumers .


In December 2018, the Government of Canada passed legislation to modernize Canada’s Financial Consumer Protection Framework (FCPF) and to strengthen FCAC’s mandate and grant it additional powers. The ''Financial Consumer Agency of Canada Act'' outlines FCAC's functions, administration and enforcement powers, and lists the sections of federal laws and regulations under its supervision.


==Organization== ==Organization==
FCAC is headed by a Commissioner, appointed for a five-year term. The Commissioner reports annually to Parliament through the Minister of Finance, on the Agency's activities and on the performance of financial institutions in complying with consumer protection measures. FCAC is headed by a ], appointed for a five-year term. The Commissioner reports annually to the ] through the ], on the Agency's activities and on the performance of financial institutions in complying with consumer protection measures.
The first commissioner (2001–2006) was ], a former ] executive and ] ] from ].
Ursula Menke was appointed Commissioner on December 3, 2007 for a five-year term. On December 3, 2012, she was reappointed for a six-month term.


The first Commissioner was ], a former senior executive and ] in the ]. He retired in 2006.
Ms. Menke received a Bachelor of Science and Bachelor of Civil Law degrees from ]. She also earned a teaching diploma from the ]. From 1977 to 1992, Ms. Menke held various positions in corporate and legal services with the ], in the private sector and with the ].


Ursula Menke was appointed Commissioner in December 2007.<ref>{{Cite web|url = http://www.fin.gc.ca/n07/07-093-eng.asp|title = Minister of Finance Announces Appointment of New Commissioner of the Financial Consumer Agency of Canada|access-date = February 7, 2014|archive-date = February 2, 2014|archive-url = https://web.archive.org/web/20140202101347/http://www.fin.gc.ca/n07/07-093-eng.asp|url-status = dead}}</ref> Before her mandate at FCAC, Ms. Menke held various positions giving her more than 30 years' experience in financial and legal affairs in both the public and private sectors, including the ], the ] and the ].
Ms. Menke served as Inspector General of the ], reporting to the ], from 1992 to 1993.

In the private sector, Ms. Menke was Vice-President, Counsel and Corporate Secretary at the ] from 1993 to 1998.
From 1999 to 2002, Ms. Menke was Secretary General of the ].

From 2004 to 2005, Ms. Menke was Head of Coordination for Sponsorship Matters at the ], where she coordinated the federal government's activities on sponsorship issues, particularly for the ].


Lucie Tedesco, was appointed Commissioner on September 4, 2013. Prior to her appointment as Commissioner, Ms Tedesco held the roles of Acting Commissioner and Deputy Commissioner with the FCAC. She joined the Agency, after serving as Vice-President, Insurance and Loan Operations and Vice-President, Strategy & Planning with Export Development Canada.


FCAC’s last permanent Commissioner, Judith Robertson, began her appointment on August 19, 2019, for a term of 5 years. She was replaced by interim Commissioner Werner Liedtke on February 23, 2024. <ref>{{cite web|url=https://deputypm.canada.ca/en/news/news-releases/2024/02/23/government-announces-appointment-interim-commissioner-financial|title=Government announces appointment of interim Commissioner of the Financial Consumer Agency of Canada|date=February 23, 2024 |access-date=August 5, 2024}}</ref>


==Compliance and enforcement== ==Supervision and enforcement==
Under its compliance and enforcement mandate, the Agency investigates cases of non-compliance with consumer protection measures as set out in Canadian legislation. FCAC identifies potential cases using consumer complaints, as well as through the inquiries and investigations of its officers. The Agency's commissioner can impose a variety of penalties on institutions found to be in violation of consumer measures, including monetary penalties and public naming of the institution. Under its compliance and enforcement mandate, the Agency investigates cases of non-compliance with consumer protection measures as set out in Canadian legislation. FCAC identifies potential cases using consumer complaints, as well as through the inquiries and investigations of its officers. The Agency's commissioner can impose a variety of penalties on institutions found to be in violation of consumer measures, including monetary penalties and public naming of the institution.


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==Consumer education== ==Consumer education==
{{Unreferenced section|date=January 2024}}
Under its consumer education mandate, FCAC produces publications and resources related to understanding and managing personal finances and financial products and services.
Under its consumer education mandate, FCAC produces timely and objective resources and tools related to understanding and managing personal finances and financial products and services. On Canada.ca/money, FCAC offers information on a variety of financial topics, along with that can help consumers find the financial products and services that best meet their needs, including a Budget Planner, Mortgage Calculator, and Financial Goal Calculator. FCAC also develops infographics and videos to help consumers strengthen their financial literacy, which can be followed and shared on Twitter, Instagram, Facebook, LinkedIn and YouTube.


FCAC offers different financial education programs aimed at a wide range of age groups, including financial workshops and e-learning videos for young adults, a workshop aimed at better understanding credit reports, and learning programs to help adults manage their personal finances.
FCAC’s website makes available to consumers more than 60 different online publications, tip sheets and other resources along with interactive tools that help consumers find the financial products and services that best suit their needs.
FCAC’s publications and resources address the following topics:


FCAC also offers a free online resource, that provides Canadian employers with the strategies, tools and resources needed to build and implement a financial wellness program within their workplace, including a section specifically tailored to employees.
- ]

- ] and ]

- ]

- payment options and ]

- ]

- ] and ]

- ] and ]

- ]

- ]

- consumers’ rights and responsibilities.


==Financial literacy==
FCAC offers different financial education programs aimed at a wide range of age groups.

''The City'' is an educational resource for high school students to better prepare them to handle the financial realities of adulthood by learning financial life skills through in-class lessons or self-guided online modules. This educational resource was developed by FCAC in partnership with the ] and is freely available on the Web. It presents characters at different life stages to demonstrate real-life financial challenges that most young people will face.

Financial Basics is a financial workshop developed for young adults. FCAC, the ] and financial author and journalist Ellen Roseman developed the workshop materials. Non-profit organizations, educational institutions or employers can order the materials to teach budgeting, saving, credit, investing, fraud prevention and financial planning. The materials are available in both English and French, and can be ordered free of charge online or by mail.

Your Financial Toolkit is a comprehensive 11-module learning program that provides basic information and tools to help adults manage their personal finances and gain the confidence they need to make better financial decisions. It was designed by FCAC, the ] (IEF) and ].

The workshop materials are available free of charge in both English and French, and include:

* Presenter’s Manual
* Participants’ Handbooks
* Presentation slides
* Workshop evaluation forms
* Promotional artwork.


==Financial Literacy Month==

November 2011 was the first Financial Literacy Month, organized by FCAC in partnership with the Financial Literacy Action Group, an umbrella organization of community and non-profit organizations.

In 2012, the ] declared November to be national Financial Literacy Month.

FLM 2012, the second Financial Literacy Month, featured over 260 events held by close to 60 different organizations in every province and in one territory in Canada. Community and volunteer groups, government agencies and private-sector organizations offered workshops, seminars and other activities to teach managing personal finances.

FLM 2012 also featured FCAC’s first video contest for young people. The Agency invited students aged 13 to 19 to submit a video of one to three minutes on the theme, “How I am saving for ....” The video had to end with the words: “Financial understanding: it just adds up.”
Thirty-eight students submitted videos, and the Agency selected three winners. The eight finalists were all available for viewing on FCAC's ] ; Canadians who viewed the videos then picked a “People’s Choice” winner.


==See also==
* ]


==References== ==References==
<references />
{{Reflist}}
{{refbegin}}
*
*
{{refend}}

==External links==
*
*
*


{{authority control}}
{{DEFAULTSORT:Financial Consumer Agency Of Canada}}
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Latest revision as of 13:47, 14 November 2024

"FCAC" redirects here. For the arts centre in Melbourne, Australia, see Footscray Community Arts Centre.

Financial Consumer Agency of Canada
Agence de la consommation en matière financière du Canada
Agency overview
Formed2001
JurisdictionGovernment of Canada
HeadquartersOttawa, Ontario
Employees209
Annual budget$45.9M (CAD)
Agency executive
Websitewww.canada.ca/en/financial-consumer-agency.html

The Financial Consumer Agency of Canada (French: Agence de la consommation en matière financière du Canada, FCAC) is an agency of the Government of Canada that enforces consumer protection legislation, regulations and industry commitments by federally regulated financial entities. It also provides programs and information to help consumers understand their rights and responsibilities when dealing with financial institutions and promotes financial literacy.

Mandate

FCAC has a dual mandate, set out in the Financial Consumer Agency of Canada Act. Broadly, these two main elements are:

  • ensuring and enforcing compliance by the financial sector with federal legislation and regulations, as well as voluntary codes of conduct and public commitments
  • promoting greater financial literacy by informing consumers about their rights and responsibilities when dealing with financial entities and payment card network operators.

Under its compliance mandate, FCAC is responsible for:

  • ensuring that the market conduct of federally regulated financial entities complies with federal legislation and regulations
  • promoting the adoption of policies and procedures designed to implement legislation, regulation, voluntary codes of conduct and public commitments by federally regulated financial entities
  • monitoring federally regulated financial entities’ compliance with voluntary codes of conduct and their own public commitments.

Under financial literacy, FCAC is responsible for:

  •      helping consumers better understand financial products and services, as well as their rights and responsibilities when dealing with financial institutions.
  •      providing tools and resources to help Canadians understand and manage their finances.
  •      monitoring and evaluating trends and emerging issues that may affect consumers of financial products and services.
  •      developing educational programs and workshops, in collaboration with organizations across the country, to help Canadians manage their finances and make informed financial decisions. ----

Scope

FCAC monitors and supervises financial institutions and external complaints bodies that are regulated under federal legislation. These entities include all banks and federally incorporated or registered insurance, trust and loan companies, retail associations, federal credit unions and external complaints bodies. FCAC also supervises payment card network operators to determine whether they are in compliance with the provisions of the Payment Card Networks Act.

FCAC does not regulate foreign bank representative offices, fraternal benefit societies or cooperative credit associations.

A complete list of federally regulated financial institutions is available from the Office of the Superintendent of Financial Institutions (OSFI).

As a regulatory agency, FCAC can exercise its enforcement powers to ensure that federally regulated financial entities comply with the consumer provisions of the various federal acts relating to financial services, including:

  • the Bank Act
  • the Insurance Companies Act
  • the Trust and Loan Companies Act
  • the Cooperative Credit Associations Act
  • the Green Shield Canada Act
  • the Payment Card Networks Act
  • the Financial Consumer Agency of Canada Act.

In cases of contravention or non-compliance with legislation, FCAC notifies the federally regulated financial entity of a violation. Depending on the severity and frequency of the problem, the Agency may also:

  • seek a commitment from the financial entity to remedy the issue within a short time
  • impose a monetary penalty
  • impose criminal sanctions
  • take other actions as necessary.

History

The Agency was established in 2001 by the federal government to strengthen oversight of consumer issues and expand consumer education in the financial sector.

FCAC’s creation was one in a series of initiatives resulting from an extensive period of study and public consultation on financial sector reform.

In December 1996, the Government of Canada launched the Task Force on the Future of the Canadian Financial Services Sector, one of several initiatives following extensive debate and consultation on reform of the financial sector.

In September 1998, the Task Force presented the federal government with its report, Change, Challenge, Opportunity (known as the MacKay Report). One of the Task Force’s findings was that "the current framework for consumer protection is not as effective as it should be in reducing the information and power imbalance between institutions and consumers." Two parliamentary committees reviewed the Task Force Report, held public consultations across the country and presented their own recommendations.

A broad consensus on ways to improve the financial sector emerged through this process. In June 1999, the government released a policy paper, Reforming Canada’s Financial Services Sector: A Framework for the Future, containing 57 reform measures. Among them was a proposal to create a financial consumer agency to oversee consumer interests and improve consumer protection. Legislation to implement the reform package was passed on June 14, 2001.

The Financial Consumer Agency of Canada opened its doors in 2001 under the Financial Consumer Agency of Canada Act.

In its first year, FCAC established a website and a call centre for consumers to make complaints and ask questions about their rights and responsibilities regarding financial products and services.

In 2007, the Government of Canada provided FCAC with an additional $3 million for the creation of the Financial Literacy Initiative.

In 2009, new federal legislation gave FCAC oversight over payment card network operators.

On July 11, 2010, amendments to the Financial Consumer Agency of Canada Act further expanded FCAC’s role in four areas:

  1. increased ability to do research, field testing and stakeholder engagement to provide information to the government on financial consumer trends and emerging issues
  2. expanded consumer information role to cover all matters related to protecting consumers of financial products and services
  3. responsibility for overseeing the Payment Card Networks Act (PCNA) and any related regulations
  4. promoting public awareness of the PCNA and the Code of Conduct for the Credit and Debit Card Industry in Canada.

As a result of amendments to the Bank Act in 2010 which provided for federally regulated credit unions, FCAC became responsible for supervising and monitoring such credit unions’ compliance with applicable legislation and regulations.

In August 2010, the Code of Conduct for the Credit and Debit Card Industry came into force. FCAC opened its new Research Branch as part of its expanded mandate.

November 2011 was the first Financial Literacy Month. FCAC, together with a group of community organizations called the Financial Literacy Action Group (FLAG), organized workshops and other events across Canada to promote financial literacy among consumers.In March 2012, the Parliament of Canada officially designated November as Financial Literacy Month in Canada.

In December 2018, the Government of Canada passed legislation to modernize Canada’s Financial Consumer Protection Framework (FCPF) and to strengthen FCAC’s mandate and grant it additional powers. The Financial Consumer Agency of Canada Act outlines FCAC's functions, administration and enforcement powers, and lists the sections of federal laws and regulations under its supervision.

Organization

FCAC is headed by a Commissioner, appointed for a five-year term. The Commissioner reports annually to the Parliament of Canada through the Minister of Finance, on the Agency's activities and on the performance of financial institutions in complying with consumer protection measures.

The first Commissioner was Bill Knight, a former senior executive and Member of Parliament in the House of Commons of Canada. He retired in 2006.

Ursula Menke was appointed Commissioner in December 2007. Before her mandate at FCAC, Ms. Menke held various positions giving her more than 30 years' experience in financial and legal affairs in both the public and private sectors, including the Privy Council Office, the Department of Finance and the Metropolitan Life Insurance Company.

Lucie Tedesco, was appointed Commissioner on September 4, 2013. Prior to her appointment as Commissioner, Ms Tedesco held the roles of Acting Commissioner and Deputy Commissioner with the FCAC. She joined the Agency, after serving as Vice-President, Insurance and Loan Operations and Vice-President, Strategy & Planning with Export Development Canada.

FCAC’s last permanent Commissioner, Judith Robertson, began her appointment on August 19, 2019, for a term of 5 years. She was replaced by interim Commissioner Werner Liedtke on February 23, 2024.

Supervision and enforcement

Under its compliance and enforcement mandate, the Agency investigates cases of non-compliance with consumer protection measures as set out in Canadian legislation. FCAC identifies potential cases using consumer complaints, as well as through the inquiries and investigations of its officers. The Agency's commissioner can impose a variety of penalties on institutions found to be in violation of consumer measures, including monetary penalties and public naming of the institution.

FCAC's Commissioner reports to Parliament annually with an assessment of federally regulated institutions' compliance with legislation.

Consumer education

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Under its consumer education mandate, FCAC produces timely and objective resources and tools related to understanding and managing personal finances and financial products and services. On Canada.ca/money, FCAC offers information on a variety of financial topics, along with online interactive tools that can help consumers find the financial products and services that best meet their needs, including a Budget Planner, Mortgage Calculator, and Financial Goal Calculator. FCAC also develops infographics and videos to help consumers strengthen their financial literacy, which can be followed and shared on Twitter, Instagram, Facebook, LinkedIn and YouTube.

FCAC offers different financial education programs aimed at a wide range of age groups, including financial workshops and e-learning videos for young adults, a workshop aimed at better understanding credit reports, and learning programs to help adults manage their personal finances.

FCAC also offers a free online resource, financial wellness in the workplace that provides Canadian employers with the strategies, tools and resources needed to build and implement a financial wellness program within their workplace, including a section specifically tailored to employees.

See also

References

  1. ^ "Financial Consumer Agency of Canada Act". Retrieved February 10, 2013.
  2. ^ "Payment Card Networks Act". Retrieved February 12, 2013.
  3. "Bank Act". Retrieved February 8, 2013.
  4. "Insurance Companies Act". Retrieved February 1, 2014.
  5. "Trust and Loan Companies Act". Retrieved February 7, 2014.
  6. "Cooperative Credit Associations Act". Retrieved February 7, 2014.
  7. Task Force on the Future of the Canadian Financial Services Sector (1998). Change, Challenge, Opportunity: Report of the Task Force. Ottawa, Ontario: Department of Finance Canada. p. 260. ISBN 0-662-27133-5.
  8. Department of Finance Canada. "Reforming Canada's Financial Services Sector -- A Framework for the Future". Task Force on the Future of the Canadian Financial Services Sector. Government of Canada. Archived from the original on May 9, 2013. Retrieved February 1, 2013.
  9. "Minister of Finance Announces Appointment of New Commissioner of the Financial Consumer Agency of Canada". Archived from the original on February 2, 2014. Retrieved February 7, 2014.
  10. "Government announces appointment of interim Commissioner of the Financial Consumer Agency of Canada". February 23, 2024. Retrieved August 5, 2024.
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