Consumer protection, consumer education and financial literacy emphasized in the Budget.
Finance Minister William Morneau tabled his first budget on March 22, 2016.
The government proposes to more strongly emphasize consumer protection by amending the Bank Act to include a new chapter, which will consolidate consumer protection measures that are disbursed throughout the Bank Act.
The new framework will include a set of principles to guide bank conduct. Details of the requirements and prohibitions were not provided in the Budget.
The Financial Consumer Agency of Canada will continue to oversee the consumer protection regulatory framework.
Page 222 of the budget outlines the government’s intentions including enhancing consumer education and financial literacy:
Canadians deserve financial consumer protection that keeps pace in meeting their needs.
In addition, the financial consumer protection framework must provide clarity to guide the operations of federally regulated banks. Amendments to the Bank Act will be proposed to modernize the financial consumer protection framework by clarifying and enhancing consumer protection through a new chapter in the Act. They will reaffirm the Government’s intent to have a system of exclusive rules to ensure an efficient national banking system from coast to coast to coast.
The Government will collaborate with provinces, territories, and stakeholders to support the implementation of the framework, as well as to enhance consumer education and financial literacy.