The Financial Consumer Agency of Canada (FCAC) has published findings from a thematic review of how federally regulated small and medium-sized banks (SMSBs) have implemented electronic alerts (e-alerts) under Canada’s Financial Consumer Protection Framework. FCAC found that while SMSBs have taken steps to meet the requirement, implementation issues meant some consumers were not fully benefiting from e-alerts. E-alerts are intended to help consumers make timely decisions and avoid unnecessary fees and are triggered when an account balance or available credit falls below a threshold (CAD 100 by default, but customizable). The review covered all 41 federally regulated SMSBs via a survey and included a more in-depth, eight-month assessment of six SMSBs; identified weaknesses included delayed alerts, incomplete information, and missing consumer contact details. FCAC has required the SMSBs assessed to take corrective actions and will monitor their responses, and it expects all federally regulated financial institutions, including Canada’s six largest banks, to review the report and address any deficiencies.
Financial Consumer Agency of Canada 2025-03-20
Financial Consumer Agency of Canada identifies e-alert implementation gaps at small and medium-sized banks and requires corrective action
The Financial Consumer Agency of Canada (FCAC) released findings from a review on electronic alerts by federally regulated small and medium-sized banks (SMSBs) under Canada’s Financial Consumer Protection Framework. Issues like delayed alerts and incomplete information were identified, prompting FCAC to mandate corrective actions from SMSBs. FCAC expects all federally regulated financial institutions, including Canada's largest banks, to address deficiencies highlighted in the report.