Evidence of meeting #25 for Finance in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was billion.
A recording is available from Parliament.
5:15 p.m.
Liberal
5:15 p.m.
Commissioner, Financial Consumer Agency of Canada
The largest part of the behaviour is not something over which consumers have control. Somebody puts a little camera into a machine. It's really beyond the consumer's ability to control. They don't see these things, and so in that sense--
5:15 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
Okay, I understand what you're getting at.
What happens with people who do have their identity taken or stolen? Has there been cooperation from the financial institutions?
5:15 p.m.
Commissioner, Financial Consumer Agency of Canada
Yes. There is a code on debit cards that deals directly with this matter, and if there has been identity theft or that fraudulent activity, basically the institutions hold them harmless.
5:15 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
But you haven't seen situations in which the institution and the consumer have been at odds as to the rectification of the moneys that have been stolen or borrowed or misappropriated?
5:15 p.m.
Commissioner, Financial Consumer Agency of Canada
Certainly that happens. That does happen.
5:15 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
I have just one more quick one.
It does happen? But is that...?
5:15 p.m.
Commissioner, Financial Consumer Agency of Canada
In those circumstances, at that point in time, it's really beyond.... On a specific case, it's a redress issue. It's really not part of the mandate of the agency, so we ask the consumers to go to the ombudsman services to deal with them and to use that chain.
5:15 p.m.
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
I have a final quick question on credit unions in Quebec. Do you have any jurisdiction over them?
5:15 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Thank you, Mr. Chairman. In July 2007, you carried out a survey which indicated that 33% of respondents were not well aware of their rights as far as financial products on the market are concerned. It states that 41% stated they needed more information and that 60% of respondents mentioned that they found most information on financial issues hard to understand. Earlier on, you said that you would like to have a bigger budget in order to be able to act on these issues.
Could you explain how your funding works? I understood that it was the financial institutions, the clients, that provided your funding. Do you file budgetary requests every year with the people who pay the fees? Explain how it works to us, so that we can determine if the available amounts could be increased.
5:15 p.m.
Commissioner, Financial Consumer Agency of Canada
I will ask my colleague to respond in detail. I know that we collect these fees and that it is not the institutions that set a ceiling.
5:20 p.m.
Bloc
5:20 p.m.
Deputy Commissioner, Financial Consumer Agency of Canada
The funding is defined based on our projected needs and the activities we have outlined in our business plan. The fees that are applied to the institutions are set and invoiced during the fiscal year. Those are the funds we have available to carry out the activities, including compliance and consumer education.
5:20 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Who determines the amount of the fees?
5:20 p.m.
Deputy Commissioner, Financial Consumer Agency of Canada
We establish the budget.
5:20 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Therefore, if you decide to fund a particular information campaign for the general public in order to improve awareness of your organization, you yourselves would be able to say that, for example, you need $2 million more in order to carry this out. You would set the rate, and the companies would pay the fees.
5:20 p.m.
Deputy Commissioner, Financial Consumer Agency of Canada
Yes, but on top of that, the government decided last year to contribute to this effort in order to increase consumers' skills in the financial sector.
5:20 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
What size was the contribution? What was the amount you were given?
5:20 p.m.
Commissioner, Financial Consumer Agency of Canada
We were given $3 million over two years.
5:20 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
And how much money came from the companies?
5:20 p.m.
Commissioner, Financial Consumer Agency of Canada
Approximately $8 million per year.
5:20 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
So you receive $8 million a year plus $1.5 million.
