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Ottawa initiates the update of the federal laws governing financial institutions


Mathieu Carbasse

16 August 2017 13:30

Photo : Freepik

Ottawa has tabled on 11 August last year, a second consultation document in order to initiate the renewal of the federal laws governing financial institutions.

In the report titled strategic Measures it is possible to support a strong economy and growth : Preparing for Canada’s financial sector for the future, the Department of Finance Canada has made a first compilation of the observations and recommendations of a wide range of stakeholders obtained during the first step of the process launched on August 26, 2016.

In the framework of the second phase, the department aims to collect points of view in order to know if there is a need to take strategic measures, and how to implement them if necessary. He is also aware that the consultations on strategic measures possible could lead to a parliamentary review of the legislation before the deadline of march 29, 2019.

Greater powers in terms of investment in infrastructure

Among the policy measures possible to include in the update of 2019 of the statutes, some relate to the insurance industry and financial services.

In the framework of the modernization of the legislative framework, the Department seeks comment to determine whether it should be assigned to life insurance companies and health insurance under federal regulatory powers in the field of investment in infrastructure. The Department also seeks advice on the conditions that should apply in the exercise of these powers, so as to protect policyholders and to maintain the limits on the commercial investments that have been in place for many years.

Promote the participation of women in the board of directors

In addition, in terms of representativeness, the Department seeks comment to determine whether it is appropriate to implement a template «comply or explain» in order to promote the participation of women in the board of directors and senior management of federally regulated financial institutions.

In addition, he also wants to know if it is appropriate to provide for annual elections of directors with mandates fixed a year in all federally regulated financial institutions.

Prudential standards for the term «bank»

The Department also seeks advice to determine whether to allow deposit-taking institutions non-bank regulated by the prudential standards to use the terms «bank» or «banking» to describe their activities and services in appropriate circumstances. The Department invites the submission of ideas regarding ways to clarify the limits surrounding the use of these terms, to prevent confusion in the marketplace and adequately protect consumers.

In the field of financial technology, first of all, some measures may clarify the powers of the financial institutions in the areas of technology, financial, to facilitate collaboration with the companies of financial technology (Fintech), or, to simplify the framework with respect to the entry and exit of banks.

Reduce the risk of earthquakes extreme

Ottawa also examines the way to reduce the risk of potential systemic earthquakes extreme for p & c insurers under federal regulation. He will consult with the provinces, territories and stakeholders.

In addition, the Agency of the financial consumer of Canada (FCAC) aims to improve the product awareness of consumers to the risks of natural disasters and the associated roofing to make them aware of the insurance products as well as their rights and responsibilities in the matter. The Ministry will also seek ways to collaborate with provincial and territorial governments.

In addition, the Department is seeking views on possible improvements to the framework resolution of the life insurance companies in the event of bankruptcy of an insurer.

Develop a cyber-security strategy, and avant-garde

In terms of cyber risks, the Department is seeking comments in order, in particular, to develop a new cybersecurity strategy to be avant-garde, sustainable and adapted to an environment of cybersecurity is constantly evolving, to make Canada a world leader in the provision of cutting-edge technology in cyber security and in the use of this technology in order to promote the provision of safe services and safe in the global market.

At the same time, the Ministry will intensify its collaboration in the area of cyber security, in the framework of the G7 and the G20, in order to increase the awareness and develop joint initiatives aimed at improving the cyberrésilience.

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