FCAC ISSUES FINAL VERSION OF PRODUCT AND SERVICE APPROPRIATENESS GUIDELINE
On February 24, 2022, the Financial Consumer Agency of Canada (FCAC) issued the final version of its Guideline on Appropriate Products and Services for Banks and Authorized Foreign Banks. The Guideline follows a consultation process and sets out key principles and expectations related to the offering and sale of appropriate bank products and services to consumers. It becomes effective on June 30, 2022, along with the new Financial Consumer Protection Framework Regulations.
In addition to the applicability the Guideline to federally regulated financial entities, it will also be of interest to the broader capital markets participants, particularly in relation to their KYP, KYC and remuneration and incentive practices.