In a speech, the Financial Consumer Agency of Canada (FCAC) set out how it is modernising supervision under the Financial Consumer Protection Framework, including the introduction of a new internal Market Conduct Risk Assessment Model and plans to increase the number and frequency of compliance examinations for federally regulated financial institutions. The risk model is intended to support a more data-driven and entity-specific approach, combining factors such as entity size and complexity, compliance behaviour (using data including quarterly complaints reporting, reportable compliance issues, examination results and other supervisory engagement outcomes) and other intelligence. The next phase is expected to examine sales, marketing and compensation practices, and incorporate additional sources such as insights from other regulators and social media. FCAC also pointed to mandatory reporting as a key supervisory input, and noted that examinations can result in required action plans, compliance agreements or, in more serious cases, enforcement action. Recent thematic reviews of small and medium-sized banks identified issues in complaint handling, including not treating all expressions of dissatisfaction as formal complaints and failures to resolve complaints within the prescribed 56-day period, as well as shortcomings in electronic alerts due to delays, incomplete information or missing contact details. FCAC reiterated expectations on clear consumer disclosures in third-party distribution arrangements and on complaint pathways, highlighting that banks and federal credit unions should handle complaints through the institution and the Ombudsman for Banking Services and Investments (OBSI), with FCAC positioned as an education and support resource. It also stated that supervisory remediation activity resulted in well over CAD 38 million reimbursed to more than 745,000 consumer and business accounts during fiscal year 2024–2025, and noted ongoing work to renew the National Financial Literacy Strategy alongside new Canadian Financial Capability Survey findings showing 35% of Canadians sought financial advice in the past year, most often from free sources.
Financial Consumer Agency of Canada 2025-11-25
Financial Consumer Agency of Canada outlines new Market Conduct Risk Assessment Model and plans to increase compliance examinations
The Financial Consumer Agency of Canada (FCAC) modernized supervision under the Financial Consumer Protection Framework, introducing a new Market Conduct Risk Assessment Model and plans to increase compliance examinations for federally regulated financial institutions. The FCAC emphasized mandatory reporting, clear consumer disclosures, and complaint handling, noting over CAD 38 million reimbursed to consumers and ongoing efforts to renew the National Financial Literacy Strategy.