Ombudsman Named as Banking External Complaints Body

Summary#

The Minister of Finance, Chrystia Freeland, has designated the Ombudsman for Banking Services and Investments to be the official external complaints body under the Bank Act. This designation takes effect on November 1, 2024 and was made on the recommendation of the Commissioner of the Financial Consumer Agency of Canada.

What it does#

• Names the Ombudsman for Banking Services and Investments as the external complaints body under the Bank Act.
• Records the decision and the effective date: November 1, 2024.
• Notes that the designation followed a recommendation from the Commissioner of the Financial Consumer Agency of Canada.

Who's affected#

• Customers of federally regulated banks who need an independent place to raise unresolved complaints.
• Federally regulated banks, which will work with the newly designated external complaints body.
• The Ombudsman for Banking Services and Investments, whose role is formally recognized under the Bank Act.
• The Financial Consumer Agency of Canada (through its Commissioner), which recommended the designation.

Why it matters#

• It clarifies which outside organization is officially responsible for handling certain bank-related complaints under the Bank Act starting November 1, 2024.
• For bank customers, that may mean a clearer route to an independent review when a problem with a bank cannot be resolved directly.
• For banks and consumer advocates, it sets who will be the recognized external reviewer for disputes covered by the law.