August 27, 2018 09:45
The Office of the superintendent of financial institutions (OSFI) ruled on who can present themselves as a bank or claim to offer banking activities.
The regulator was faced with some fintechs and young shoots, which did not hesitate to compare themselves to banks, or to say that they offered banking services. “There has been an increase in the use of these terms by non-bank entities “, said Sylviane Desparois, spokesman for OSFI, the Journal of insurance.
In June 2017, the OSFI has wanted to reserve the use of the terms ” banks “, “banker” and “banking” for the banks. However, in the wake of this, credit cooperatives, particularly in Western canada, have made their voices heard, remembering that they also were engaged in the business of banking. OSFI has adopted his framework, ” said Desparois. Notice the official was published on 14 August.
Amendment to the Act on banks
“The changes essentially relate to the fact that the credit cooperatives in the provincial, as well as companies, trust and loan federal, can now use banking terms generic to describe their activities, subject to meeting certain requirements in terms of communication. We have also release our new schedule for financial services providers that must comply with the restrictions, ” said Mrs. Desparois.
The notice of the 14 August is coming so amend the Law on banks. It does, however, no changes to the barriers that separate the activities that a bank may exercise in insurance, said Ms Desparois.