TORONTO (Thomson Reuters Regulatory Intelligence) – Canadian banks must strengthen governance and control frameworks over sales practices and market conduct, in order to reduce a growing misconduct risk from putting profits ahead of consumer protection. That is the finding of a recent consumer agency review which focused heavily on banking culture. The review also offers insights into how banks can mitigate the enforcement and reputational risks stemming from over-zealous sales practices.
The Financial Consumer Agency of Canada (FCAC) reported in late March that Canadian retail banking culture had become so sales-focused that existing governance frameworks and compliance controls were…
