Call supports Budget 2023 commitment to achieve a fairer external complaints handling system for financial consumers
Ottawa ON
Today, the Financial Consumer Agency of Canada (FCAC) launched a call for applications for eligible entities to serve as Canada's single banking external complaints body (ECB). The process supports the government's Budget 2023 commitment to achieve a fairer external complaints handling system for financial consumers.
FCAC protects financial consumers by supervising the compliance of federally regulated financial entities, including banks and ECBs, with their legislative obligations, codes of conduct and public commitments, and by strengthening the financial literacy of Canadians.
In Budget 2023, the government announced its intention to strengthen the external complaints handling system for banks by designating a single, not-for-profit entity to be the sole ECB, following a selection process led by FCAC. The proposal is contained in Bill C-47, the Budget Implementation Act, 2023.
Impartial and effective complaints handling builds trust and confidence in financial institutions and is an important contributor to consumer protection. The move to a single ECB is in the best interest of Canadians. It addresses findings from FCAC's 2020 report on the Operations of External Complaints Bodies, which found that Canada's current multiple-ECB model introduces inefficiencies and complexities, and is not consistent with international standards.
FCAC is committed to conducting an open, fair and transparent application process. Applicants are expected to clearly articulate how they meet the requirements to effectively serve as Canada's single ECB, as outlined in FCAC's call for applications.
The single ECB, which will be designated by the Minister of Finance on a recommendation of FCAC, will be responsible for providing a fair and impartial external process for consumers whose complaints have not been resolved by banks to their satisfaction, or dealt with in a timely manner.
