Two of Canada's leading consumer groups, FAIR Canada and the Public Interest Advocacy Centre (PIAC), today welcomed a
that confirmed major Canadian banks incentivize their employees to "mis-sell" unsuitable financial products to Canadians.
However, the report, written after a lengthy investigation by the Financial Consumer Agency of Canada (FCAC), did not detail which banks did what, how many products were involved, how many complaints were involved, or the extent of financial losses to consumers. There is no support for their key finding that they "did not find widespread mis-selling." Despite the lack of transparency, the report was clear that consumers' interests were made secondary to those of the bank and their employees and contractors.
"In fact, the FCAC's central finding from its investigation is that the predominant focus in retail banking is on the selling of products and services rather than appropriately prioritizing the interests of financial consumers", noted Frank Allen, Executive Director of FAIR Canada.
"This report shows
what PIAC has said
all along," said John Lawford, Executive Director and General Counsel of PIAC. "Banking consumers need a Financial Consumer Code to protect the rights of Canadian banking customers."