On September 28, 2018, the Financial Services Commission of Ontario (FSCO) released its Treating Financial Services Consumers Fairly Guideline.
The Guideline applies to those licensed or registered by FSCO in the insurance, credit union/caisse populaire, loan and trust and mortgage brokering sectors. The purpose of the Guideline is “to ensure there is common understanding between FSCO and its Licensees as to what it means to treat consumers fairly.”
The Guideline contains a list of eight principal expectations, which FSCO says are intended not to be a prescriptive or exhaustive list, but rather to be used as guidance as part of a principles-based approach. The expectations listed by FSCO are:
1. FSCO expects that a core component of a Licensee’s business governance and culture is fair treatment of consumers.
2. FSCO expects Licensees to act with due skill, care and diligence at all times, but especially when dealing with consumers or designing financial services or products for consumers.
3. FSCO expects Licensees to promote financial services and products in a manner that is clear, fair and not misleading or false.
4. FSCO expects Licensees to recommend products that are suitable, taking into account the consumer’s disclosed personal circumstances and financial condition.
5. FSCO expects Licensees to disclose and manage any potential or actual conflicts of interest.
6. FSCO expects Licensees to provide continuing service and keep consumers appropriately informed, through to the point at which all obligations to the financial services consumer have been satisfied, including claims handling or the diligent provision of benefits.
7. FSCO expects Licensees to have policies and procedures in place to handle complaints in a timely and fair manner.
8. FSCO expects Licensees to protect the private information of financial services consumer and inform them of any privacy breach.
The full text of the Guideline can be viewed here.
FSCO has also published a related document to address anticipated questions, which is available here.
