The financial services sector has been in a state of change in
Canada with respect to regulatory scrutiny.
With a number of recent initiatives and activities coming from
the Financial Consumer Agency of Canada (FCAC), we believe
enforcement activity is poised to increase, including in both
issuing more Notices of Violations as well as naming those
institutions that do receive such notices. As a result, we
recommend that financial institutions pay greater attention to
their communications with the FCAC.
Background
The FCAC's Supervision Framework Guide states that its
enforcement team investigates potential breaches of market conduct
obligations and, depending on the severity of the breach, may,
following the investigation, issue a Notice of Breach level 1, 2 or
3. However, not all Notices of Breach result in a Notice of
Violation. Where FCAC determines that a breach is low in terms of
severity, it may choose to address outstanding issues with tools
such as
