Ottawa, Ontario
Protecting the rights and interests of Canadian consumers of financial products and services is FCAC's primary priority. Regulatory efficiency and transparency are essential to fulfilling this mandate and are hallmarks of an effective regulator. They inform FCAC's commitment to proactive, risk-based and outcome-driven supervision of the entities we oversee.
By clearly communicating our expectations, interpretations and guidance, regulated entities understand precisely what is required of them. This clarity fosters compliance, supports a competitive and predictable industry environment, and ultimately protects consumers by preventing problems before they arise.
FCAC is focused on ensuring consumers benefit from the protections in laws, codes of conduct and public commitments, while continually working to modernize its supervisory oversight and reduce unnecessary burden for regulated entities. Our efforts are aligned with the Government of Canada's Red Tape Review initiative.
Key milestones in FCAC's regulatory efficiency agenda
Since the implementation of new powers for FCAC in 2020, and the implementation of the new and enhanced protections for bank customers in 2022, the Agency has pursued a continuous improvement approach aimed at making regulatory oversight more responsive, transparent and efficient. This commitment is reflected in several key initiatives that help strengthen consumer protection while reducing unnecessary burden for regulated entities:
- Streamlined guidance
FCAC issues guidance to assist regulated entities in complying with market conduct obligations stemming from legislation, regulations, codes of conduct, and public commitments. By regularly reviewing and seeking opportunities to streamline its guidelines and bulletins, FCAC makes it easier for regulated entities to comply with and align their business practices with consumer protection expectations.
- Tailored compliance assessments
FCAC assesses the compliance of regulated entities with their obligations to protect consumers. FCAC implemented tailored assessments that focus on consumer protection issues and activities that are of higher risk to consumers. This enables regulated entities to prioritise their efforts to address higher risks and take action to protect consumers.
- Digital transformation
FCAC continues to standardize and automate the reporting process required of regulated entities, including expanding use of a secure portal technology solution. These improvements automate processes, reduce manual work, enhance data integration across systems, and support more efficient supervisory oversight.
These initiatives complement FCAC's recalibrated approach to enforcement, which is applied when there are grounds to believe a financial institution has breached its obligations to consumers. FCAC uses a triage process to prioritize enforcement actions based on the severity of non-compliance and its potential impact on consumers. This ensures enforcement responses are proportionate, focused on higher-risk issues, and aligned with the same principles used in our compliance assessments-protecting consumers while reducing unnecessary regulatory and administrative burdens.
FCAC communicates its regulatory plans and activities on an ongoing basis through supervisory engagements with regulated entities, and collaboration with federal partners on the Financial Institutions Supervisory Committee (FISC). The Agency also reports publicly on its annual business plans and annual reports, ensuring transparency and accountability in its oversight role.
Consumers are better protected when FCAC is efficient and transparent in fulfilling its mandate. FCAC's actions will remain deliberate, focused, and consumer-centered-strengthening supervisory oversight, enhancing consumer confidence and supporting a resilient financial system.
