Financial Consumer Agency of Canada
FCAC's Compliance and Enforcement Branch (CEB) recently conducted an industry review analyzing FRFIs' clear language policies and procedures.
CEB selected 59 FRFIs to participate in this review based on their responses to FCAC's 2011 Risk Assessment Model (RAM) questionnaire. All selected FRFIs offered lending products covered by the Cost of Borrowing Regulations.
FCAC's summary of its observations, findings and best practices identified will help institutions review their own internal documents to ensure that they meet the requirements set out in the Cost of Borrowing Regulations and the Commissioner's Guidance on Clear Language and Presentation Principles and Guidelines for the Industry (CG-3).
FCAC's Commissioner expects that all FRFIs subject to the Cost of Borrowing Regulations review their policies, procedures and practices in terms of clear language and how they implemented these in their disclosure documentation. Each FRFI is responsible for ensuring full compliance with the Cost of Borrowing Regulations. Where changes are required to improve documentation, processes or approaches, CEB expects that all institutions will incorporate the required amendments.
FCAC will continue to review any consumer complaints received regarding the issue of clear language in accordance with our complaints review procedure.