Financial Consumer Code to Protect Investors

The Government of Canada will develop a financial consumer code that could better inform and protect Canadian citizens when purchasing financial products and services.

Comments had been solicited via online consultations from December to February and on April 17, 2014 the Government launched roundtable discussions in Winnipeg and Vancouver on the topic.

The Government will consider this input when developing the comprehensive legislative framework that will result in the new consumer code. 

The following steps, listed on the Department of Finance website, note the existing initiatives available to ensure financial consumer protection:

• Mandating an effective minimum 21-day, interest-free grace period on all new credit card purchases when a customer pays the outstanding balance in full and introducing a fee summary box;

• Reducing the maximum cheque hold period to four days from seven days for cheques of less than $1,500 and providing consumers with access to the first $100 within 24 hours;

• Banning unsolicited credit card cheques;

• Requiring that financial institutions offer products and services on an opt-in basis only, where consumers have sufficient disclosure about the terms and conditions before accepting; and

• Introducing new requirements for prepaid cards issued by federally regulated financial institutions requiring them to disclose to consumers relevant information at appropriate points in time. These regulations come into force on May 1, 2014.

For more information on the Financial Consumer Protection Framework see Canada’s Financial Consumer Protection Framework: Consultation Paper.