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ARTICLE · 01 MARCH 2019

Financial Regulatory

Following on the heels of the account fraud scandal in the US banking industry, media reports of Canadian banks employing similar tactics began to surface in late 2016. In response, the Financial

CanadaFinance and Banking

Retail sales practices

Following on the heels of the account fraud scandal in the US banking industry, media reports of Canadian banks employing similar tactics began to surface in late 2016. In response, the Financial Consumer Agency of Canada (FCAC), which oversees federal consumer protection legislation, reaffirmed and clarified its expectations regarding express consent for new products and services. When complaints of aggressive sales practices continued to be reported, the FCAC announced, in March 2017, it would conduct an industry review of business practices related to the sale of products and services by federally-regulated financial institutions (FRFI).

While the FCAC's final report, released in March 2018, stated that widespread "mis-selling" was not found, it also summarized five key findings, which:

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