Financial Services Flashcards
What are the 3 Federal Agencies to supervise the operations of regulated institutions?
- The Office of the Superintendent of Financial Institutions (OSFI)
- The Financial Consumer Agency of Canada (FCAC)
- The Canada Deposit Insurance Corporation (CDIC)
Who does The Office of the Superintendent of Financial Institutions (OSFI) oversee?
all banks and federally incorporated or regulated insurance, trust, and loan companies, cooperative credit associations, fraternal benefits societies, and federally regulated pension plans
What are the 2 main responsibilities of the OFIC?
Regulation: developing and interpreting legislation and approving requests
Supervision: safety and soundness of financial institutions and examining corporate and financial info filed
Who is the The Financial Consumer Agency of Canada (FCAC)?
an independent federal agency that works to protect and educate consumers of financial services (other than pension plans)
What are the 2 main responsibilities of The Financial Consumer Agency of Canada (FCAC)?
consumer protection: ensures companies are operating within the rules set, no questionable practices.
consumer education: gives people a place to educate themselves about banking and financial knowledge and what their rights are.
Who is the Canada Deposit Insurance Corporation (CDIC)?
-Crown Corp governed by Canada Deposit Insurance Corp Act
-Protects Deposits in banks, trust companies and loan companies
-An important role in identifying problems early and taking action in times of market uncertainty
- member institutes pay a premium to finance the insurance incase of bank failure
Who is The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)?
-Established under federal legislation
-Focuses on detection, prevention and deterrence of proceeds of crime and Terrorist financing act
Three phases of money laundering
Placement
Layering
Integration
Money is moved from its source and placed into circulation.
Placement
Cash derived from illegal activity is moved through a series
of financial transactions in order to hide the original source or
ownership of the funds.
Layering
Funds are reintroduced into the economy.
Integration
what is the Office of the Privacy Commissioner of Canada (OPC) objective?
protect and promote privacy rights
Which Act deals with personal information handling practices of federal government departments and agencies?
The Privacy Act.
which provinces does PIPEDA not apply
Alberta, British Columbia and Quebec
Under PIPEDA, an individual’s personal information is defined as:
- Age
- Race, nationality or ethnicity
- Identifying numbers such a social insurance, driver’s licence or
passport number - Medical or employment history
- Marital status
- Financial information
- DNA
True or false
The OPC can impose fines if violations of the privacy act are found.
False
The OPC investigates complaints and works to resolve the issue but can’t impose fines but the federal courts can.
Which act is regulated by the Canadian Radio-television and Telecommunications Commission
(CRTC)
The Telecommunications Act which addresses telemarketing
Which legislation gives the CRTC the authority to regulate
certain forms of electronic contact?
Canada’s Anti-Spam Legislation (CASL)
Provincial insurance legislation generally encompasses the following four areas:
- Regulation and supervision- safety and soundness of companies
- Licensing of insurance companies- regulate market conduct
- Statutory requirements for contracts of insurance- ownership, beneficiary, claims
- Licensing of agents and brokers- applications, exams, fees, renewals
Provincial insurance councils have the power to:
*License and discipline agents, brokers and adjusters
*Establish Standards for applicants
*Investigate complaints about conduct
What are the steps in customer complaints related to insurance?
- contact Insurance company
- follow up with the ombudsperson at that insurance company
- Can escalate to independent ombudsperson
- consider legal action
Who is CCIR?
Canadian Council of Insurance Regulators
facilitate and promote an effective regulatory system
Who is CISRO?
Canadian Insurance Services Regulatory Organizations
create standardization of regulations, qualifications and conduct of insurance agents and brokers.
Who is CAPSA?
Canadian Association of Pension Supervisory Authorities
sets standards and rules for the pension regulatory system,
How does the federal Bank act restrict insurance activity by the banks?
No sharing of client info with insurance companies
No insurance products offered- exception is creditor insurance
Bank employees cannot offer insurance advise
Anything insurance is referred
