Bill C-29 Proposes To Overhaul Bank Act Consumer Provisions

On October 25, 2016, Bill C-29, Budget Implementation Act, 2016, No. 2 (the Bill), was introduced in the House of Commons. If passed, the Bill will amend the Bank Act (Canada) (the BA) to (i) respond to a trilogy of Supreme Court cases (referred to as Marcotte) by enhancing arguments that federal jurisdiction is paramount over provincial jurisdiction with respect to products and services of banks and (ii)  consolidate and strengthen consumer protection provisions that apply to banks and authorized foreign banks.

What You Need To Know

The Bill:

• adds a purpose and a paramountcy clause to the BA's existing preamble to enhance arguments that only the federal government may regulate banking products and services;