Federal Government Introduces And Then Withdraws A Consumer Protection Framework Under The Bank Act

In late October 2016, the federal government introduced Bill C-29, Budget Implementation Act, 2016, No. 2, which addresses a wide variety of topics, including proposed changes to the Bank Act (Canada). Bill C-29 has been debated in the House of Commons and the Senate, and the government has recently decided to withdraw the portions of the legislation related to the Bank Act.

Bill C-29, as presented, had proposed changes to the Bank Act (Canada) to expand the consumer protection provisions of that statute and create what amounts to a "complete code" of consumer protection rules for federally-regulated banks. This was all found in a new Part XII.2 of the Bank Act, titled "Dealings with Customers and Public." Some provisions of Part XII.2 were relocated from elsewhere in the Bank Act, while other provisions were new.