Canada’s financial consumer watchdog plans to expand its probe of business practices — which found that the country’s six biggest banks had “insufficient” controls in place to prevent sales of products that are misrepresented or unsuitable for customers — to the next tier of small and medium sized financial institutions.
The Financial Consumer Agency of Canada examined 4,500 complaints as part of its latest review of the Big Six banks, the findings of which it released Tuesday, and found grievances about other institutions as well, said the agency’s commissioner Lucie Tedesco.
It plans to “cascade” down its probe to other federally-regulated institutions, such as smaller banks, federal credit unions and federal trust companies, she added.
“There are issues with the medium or smaller banks… Our review may not be as intensive, we will have to see what measures they have put in place once we get there,” Tedesco said in an interview.
The FCAC commissioner’s comments come as the agency released the findings of an intensive review of business practices across Canada’s Big Six banks, launched last April following media reports alleging questionable sales tactics such as selling services without the consent of customers.
The probe did not find widespread misselling, defined as selling products that are unsuitable or where the consumer is provided with