Canada Reviews Financial Institution Laws

by Glen Shapiro, LawAndTax-News.com, New York

23 September 2010

Jim Flaherty, Canadian Minister of Finance, has launched the scheduled review of legislation governing federally regulated financial institutions.

“The government reviews the statutes that govern federally regulated financial institutions every five years to ensure Canada remains a global leader in financial services,” said Flaherty. “This practice sets Canada apart from almost every other country in the world.”

Federally regulated financial institutions include domestic and foreign banks, trust and loan companies, insurance companies, federal credit unions and cooperative credit associations. The commitment to keeping the legislation current ensures the stability and growth of the financial services sector.

The last legislative review was completed in 2007. The sunset date for the financial institutions statutes is April 20, 2012.

Flaherty pointed out that the global financial crisis that began in 2007 has led to extensive changes in the regulatory framework, so the current exercise is not likely to lead to major reforms.

“Some fine-tuning to the system may be required, but wholesale change is not necessary,” he said. “The government would like to hear the views of all Canadians on how to improve our financial system.”

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