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  Improve Your Financial Knowledge - Part 9

  1-Oct-2022

  30. Financial services industry is one of the most highly regulated industries in the world.

   

  31. Regulators of Financial Services:

  1. Banking Regulators

  2. Insurance Regulators

  3. Securities Regulators

  4. Other Regulators

  
  32. Bank Act: A federal legislation, governing how banks operate in Canada.

  1. Access to Basic Banking Services

  2. Access to Funds

  3. Complaints

  
  33. Banking sector is the responsibility of the below regulators:

  1. Department of Finance

  2. Office of the Superintendent of Financial Institutions (OSFI)

  3. Bank of Canada (BOC)

  4. Canada Deposit Insurance Corporation (CDIC)

   

  1. Department of Finance: Responsible for

  a) Economics

  b) Fiscal budget

  c) Federal tax

  d) Federal borrowing

  e) Trade and tariffs

  f) Transfers to the provinces and territories

  g) Financial sector policy and legislation

  
   

  Minister of Finance, Responsible for:

  Office of the Superintendent of Financial Institutions (OSFI) * Financial Consumer Agency of Canada (FCAC) * Canadian International Trade Tribunal (CITT) * Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) * Canadian Securities Regulation Regime Transition Office (CSTO) * Bank of Canada * Canada Deposit Insurance Corporation (CDIC) * Canada Development Investment Corporation (CDEV) * Canada Infrastructure Bank * Royal Canadian Mint * Canada Pension Plan Investment Board (CPPIB)

  
   

  2. Office of the Superintendent of Financial Institutions

  Responsible for regulating and supervising federally-regulated financial institutions to determine whether they are:

  a) in sound financial condition

  b) meeting established requirements to safeguard the interests of depositors

   

  OSFI regulates and supervises:

  400 financial institutions

  1,200 pension plans

  Including all federally-regulated domestic and foreign banks, insurance companies, trust and loan companies, and pension plans.

   

  3. Bank of Canada, Responsible for:

  a) Monetary Policy: Setting the interest rate to stabilize inflation, influence the economic growth, and protect the Canadian dollar

  b) Currency: Issue or remove bank notes

  c) Treasury and Funds Management: Act as the government’s banker to manage all accounts, manages foreign exchange reserves, and Advising on debts

  d) Financial System Stability: Oversee the settlement systems, Providing the required liquidity, working with other market participants

   

  4. Canada Deposit Insurance Corporation (CDIC):

  Responsible for deposit insurance:

  In case of a CDIC member’s failure (banks, etc.), the CDIC insures eligible deposits up to $100,000 (including principal and interest) per depositor, for EACH of the insured categories.

  
  CDIC Insured Categories:

  The CDIC insures eligible deposits per depositor SEPARATELY (up to $100,000 including principal and interest) for EACH of the following 7 insured categories held at EACH member institution:

  1. Deposits, held in 1 depositor's name

  2. Joint deposits, held in multiple depositors' names, up to $100,000 for all joint owners combined

  3. Deposits held in a RRSP

  4. Deposits held in a RRIF

  5. Deposits held in a TFSA

  6. Deposits, held in trust, up to $100,000 for each beneficiary, named in the trust

  7. Deposits, held separately, to pay property taxes on mortgaged properties.

   

  CDIC Insured Categories:

  1. Deposits, held in 1 depositor's name

  2. Joint deposits, held in multiple depositors' names, up to $100,000 for all joint owners combined

  3. Deposits held in a RRSP

  4. Deposits held in a RRIF

  5. Deposits held in a TFSA

  6. Deposits, held in trust, up to $100,000 for each beneficiary, named in the trust

  7. Deposits, held separately, to pay property taxes on mortgaged properties.

   

  CDIC’s Eligible Insurance Coverages:

  * Deposits must be payable in Canada and in Canadian dollars * Savings and chequing accounts * GICs and term deposits up to 5 years * Debentures for the deposits by CDIC members * Cheques and money orders certified by CDIC members

   

  CDIC’s Illegible Insurance Coverages:

  * Deposits, held at a non-CDIC member * Deposits, held in a foreign currency * Deposits, payable outside of Canada * Mutual funds (including money market funds) * GICs and term deposits over 5 years * Treasury bills and bankers acceptances * Traded principal protected notes * Debentures issued by banks, governments, or corporations

   

  External Complaints Bodies (ECBs):

  a) Ombudsman for Banking Services and Investments (OBSI)

  b) ADR Chambers Banking Ombuds Office

   

  * If a customer is not satisfied with his/her complaint result, s/he can escalate the complaint to the ECB for that bank/credit union.

  * The ECBs may recommend the financial restitution to a customer of up to a maximum of $350,000.

   

  You can book your consultation at 

  Https://ABCFinancialAdvisor.com/Book-a-Meeting

  Or call us at 647-830-8080

   

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