FSCO's Draft Guideline For Financial Services: 8 Principles For Fair Treatment

The Financial Services Commission of Ontario (FSCO) recently requested industry feedback on a proposed Superintendent Guideline, titled Treating Financial Services Consumers Fairly (Proposed Guideline). The purpose of the Proposed Guideline is to ensure there is common understanding between FSCO and the businesses and individuals it regulates (Licensees) as to what it means to treat consumers fairly. To that end, the Proposed Guideline sets out eight broad principles to guide Licensees when dealing with consumers. While many of the principles build upon existing legal requirements, Licensees should pay close attention to enhanced sales practice requirements, and in particular, the suggestion that Licensees bear an ethical duty to their customers.