New Measures For Banks Reflect Ongoing Focus On Consumer Protection

On October 17, the federal government announced four "new measures to ensure that Canadians are treated fairly by their banks".

What you need to know

• A focus on minimizing costs and mortgage default risk. Three of the recently announced measures are aimed at minimizing "banking" costs and addressing mortgage default risk—an unsurprising area of focus for the government given the current economic environment of rising interest rates and cost of living.
• A push for more consistency in the external complaint process. The transition to a single, external body (the Ombudsman for Banking Services and Investments (OBSI)), while not directed at reducing banking fees, still (1) aims to improve the bank/customer relationship by addressing a perceived lack of neutrality created by a dual, external complaint body (ECB) regime and (2) strives to ensure more consistency in the process.