Changes needed in the federal financial sector?

Changes needed in the federal financial sector?

Changes needed in the federal financial sector? With the sunset date for federal financial sector legislation and regulation being pushed back two years, the Department of Finance Canada has initiated a two-stage consultation process on the federal financial sector legislative and regulatory framework.

“While Canada has a highly regarded and well-functioning financial sector, it is an industry that is continuously evolving to meet the changing needs of its clients and find new ways to provide financial services to Canadians,” the department said in a statement. “In this context, it is important to consult with Canadians on the legislative and regulatory framework that governs the sector.”

The consultation was launched with the aim of supporting a financial sector that has:
  • Stability – the financial sector should be safe, sound, and able to withstand stresses
  • Efficiency – the sector should provide products that are competitively priced, pass any gains from efficiencies on to customers, accommodate innovation, and contribute to economic growth
  • Utility – the sector should fulfill the needs and protect the interests of a wide variety of consumers, including businesses, individuals, and families.
A consultation document titled Supporting a Strong and Growing Economy: Positioning Canada's Financial Sector for the Future has been published on the department website. It includes an overview of the financial services landscape in Canada; a discussion of the context of reforms to the sector that are being proposed; and various economic, industry, and demographic trends that the sector has to contend with.

Individuals and organizations alike have been invited to review the document and send their comments by November 15, either by email or through the post. Comments received will be critical for the development of a policy paper, which will be used for the second stage of the consultation process in 2017.

Related stories:
CSA seeks comment on proposed move to T+2 settlement cycle
Deadline for comments on CSA proposals extended