Raison d’être and mandate
Raison d’être
The Financial Consumer Agency of Canada (FCAC) was established in 2001 to protect the rights and interests of consumers of financial products and services.
The Financial Consumer Agency of Canada Act outlines FCAC's functions, administration and enforcement powers, and lists the sections of federal laws and regulations under its supervision.
Mandate and roles
FCAC’s mandate is to supervise federally regulated financial entities and strengthen the financial literacy of Canadians.
As a regulator, FCAC monitors and supervises the compliance of financial institutions, the external complaints body (ECB) and payment card network operators with consumer protection measures set out in legislation, public commitments and codes of conduct.
The Agency is also mandated to:
- promote awareness of the rights and responsibilities of Canadians in their dealings with financial institutions
- monitor, evaluate and promote awareness of trends and issues that may affect financial consumers
- develop and publish research, content, tools and programs to strengthen the financial literacy of Canadians
- foster an understanding of financial services and related issues in collaboration with stakeholders, including government, regulatory and community organizations
Reporting requirements
FCAC reports annually to Parliament through the Minister of Finance on its activities and the performance of financial entities in complying with consumer protection measures. Each year, FCAC prepares an annual report for Parliament. FCAC also publishes an annual business plan.
Funding
FCAC operates on a cost-recovery basis and is funded largely by the financial institutions it supervises. This places the cost of paying for the regulation of the financial industry on the industry directly.