L’Financial Markets Authority initiates a 60-day consultation with industry on its Draft regulation on complaint handling and dispute resolution in the financial sector. The objective is to better supervise the fair treatment of consumer complaints in the Quebec financial sector.
The Autorité adds that the draft regulation provides in particular for a definition of “complaint” as well as rules, obligations and practices common to the financial sector relating to the process to be followed and the deadlines to be observed for dealing with complaints made by consumers.
No less than eight laws are affected by this draft regulation:
- Credit Assessment Officers Act
- Insurers Act
- Financial Services Cooperatives Act
- Act respecting the distribution of financial products and services
- Depository Institutions and Deposit Protection Act
- Derivatives Act
- Act respecting trust companies and savings companies
- Securities Act
Insurers who fall under the jurisdiction of the Insurers Act will have to comply with it, as will firms, independent representatives and independent partnerships registered under the Act respecting the distribution of financial products and services.
“Through this approach, which is part of our 2021-2025 strategic plan, we want to optimize and standardize the complaint handling process for the benefit of all consumers of Quebec financial products and services,” said the CEO of the Authority, Louis Morisset. We have consulted various stakeholders, both internal and external, in order to improve our perspective in the development of the draft regulation, which is also inspired by international best practices. “
Until November 8, the Authority will consult the industry on this matter. During a webinar on September 16, the regulator will explain the main directions of the draft regulation.
A complaint must be processed within 60 days
In the consultation document presented to the industry, we learn that the AMF wants a complaint submitted by a consumer to be dealt with within 60 days. “This period could not be extended, can we also read. The calculation of this period begins when the complaint is received by the financial institution, financial intermediary or credit assessment agent and ends with the communication of the final response to the consumer. “
According to the AMF, this period is sufficient for financial institutions, financial intermediaries and credit assessment officers to ensure the fair treatment of the complaints they receive. For consumers, this is also a concrete indicator for the follow-up of their complaint, says the regulator.
Prohibition of the use of the term “ombudsman”
The AMF also proposes to prohibit the use of the term “ombudsman” to refer to the service of a financial institution, a financial intermediary or a credit assessment agent.
The Draft Regulation also suggests that certain practices with regard to the offer presented to consumers to settle their complaint be prohibited. It provides that such an offer could not be subject to a condition aimed at preventing the author of the complaint from exercising his right to request that the Authority’s complaint file be examined, to oblige him to withdraw any other complaint of which he is also the author or to prevent him from communicating with the Authority or from reporting an ethical breach to a self-regulatory body.
Process for intermediaries
The Autorité ends its consultation document by describing the obligations for financial intermediaries. We find in particular:
- The establishment of a complaints handling process;
- Training of the financial intermediary’s staff on its complaints handling process;
- The designation of a complaints officer and the functions entrusted to him;
- The assignment of complaints to staff responsible for handling complaints;
- Periodic reporting on the handling of complaints.
“The complaints handling and dispute resolution policy adopted by intermediaries should also provide for the analysis by the financial intermediary of the causes at the origin of the complaints received in order, if necessary, to identify the common causes and to resolve the issues they raise. Finally, the complaints handling and dispute resolution policy should also provide that an analysis of the grounds in support of a complaint be carried out in order to assess whether they could have repercussions on other persons and take measures to remedy it when this is the case, ”reads the consultation document.
The Authority states that these requirements would not apply to financial institutions subject to a similar prudential framework provided in particular in the Guideline on Sound Business Practices. The same is true for credit assessment officers for whom the Authority will implement a prudential framework adapted to their activities, she indicates.
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