Evidence of meeting #48 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was banks.
A recording is available from Parliament.
Coordinator, Canadian Community Reinvestment Coalition
It was from the finance committee. I only took this on recently. Duff Conacher, who typically handles these things, may have been aware of it before I was, but it was brought to my attention at least a couple of weeks ago.
Coordinator, Canadian Community Reinvestment Coalition
I have—not as thoroughly as I would have liked, but yes, I have.
Conservative
Shelly Glover Conservative Saint Boniface, MB
I didn't hear anything that was really relevant to Bill S-5 in what you had to say, so it begged the question, unfortunately—you know, why are you here?
Coordinator, Canadian Community Reinvestment Coalition
No, I understand, and we understand the limitations of the bill, but our argument is essentially that we believe there are a lot of different things that can be done that aren't quite done.
One thing that's directly related—
Conservative
Shelly Glover Conservative Saint Boniface, MB
I think I'm going to stop you there, because I just wanted to answer that.... It's just shocking, for an organization that claims they're on top of it all the time, to say “we only became aware of it a week ago”. And that you haven't completely read the bill to the full extent is a bit shocking.
But I have a question for Mr. Melville.
Mr. Melville, I'm wondering why the two banks left. What did they tell you?
Ombudsman, Chief Executive Officer, Ombudsman for Banking Services and Investments
When RBC left three and a half years ago, they raised a number of issues—about eight, in fact.
I think what you were seeing at that time was a frustration with a non-governmental organization performing the mandate and growing in both its stature as well as its ability to function.
Ombudsman, Chief Executive Officer, Ombudsman for Banking Services and Investments
The eight issues were many.
Ombudsman, Chief Executive Officer, Ombudsman for Banking Services and Investments
Oh, it ranged from getting into statutory investigations to timeliness of complaint handling, the increase in the budget, the non-responsiveness to their specific concerns regardless of whether they were shared by the rest of the industry, and things of that nature.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Okay. So how long does it take you on average to investigate one of these—
Ombudsman, Chief Executive Officer, Ombudsman for Banking Services and Investments
The target set by our board is 80% within 180 days. The vast majority of the straightforward complaints are actually done in less than 60 days.
The area in which we're having some challenges is actually not in the banking sector at all; it's on the investment side. On the banking side, about 87% of our investigations are concluded within the 180-day target, and many within less than 60 days.
Conservative
Shelly Glover Conservative Saint Boniface, MB
The reason I'm asking this question is that you've obviously come here for this specific reason, which you've admitted is really not about Bill S-5.
We're here to talk about Bill S-5, and it seems that Mr. Sommers, Mr. Phillips, Mr. Melville, and Monsieur Vinet all want to talk about something else, which is unfortunate, because it's a very important bill, which has some significant—
Conservative
Liberal
Scott Brison Liberal Kings—Hants, NS
Bill S-5 deals with bank regulation and the regulatory framework under which Canadian banks operate. As such—
Conservative
Liberal
Conservative
The Chair Conservative James Rajotte
That may be a point of debate, but it's not a point of order.
We'll go back to Ms. Glover.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Thank you.
It's just because that with Bill S-5, as we're making these determinations, it's so valuable for us to get your feedback about some of the things that are being changed. I'm going to ask you if there's anything within Bill S-5 that is particularly bothersome, but after I address what Mr. Melville just said.
As you know, our government is planning to shortly release what was promised in budget 2010, which is that any and all dispute resolution bodies will have to be approved by government and that they will comply with uniform regulatory standards and be monitored by FCAC. My question to you would be, does OBSI doubt that other dispute resolution bodies are capable of meeting those same standards as your organization?
Ombudsman, Chief Executive Officer, Ombudsman for Banking Services and Investments
I think the challenge is that standards are only part of it. If there are multiple players, how do you avoid a race to the bottom if the choice of who the provider will be is actually the firms? In the current environment, what you have is one body playing that public policy role, with good, strong relationships with government at both the federal and provincial levels.
Our concern—and it has been played out in Australia and New Zealand recently—is that if you have multiple players, they're competing for the banks' business, and they're not focused on the public policy mandate. I'm not sure that you could draft regulations specific enough to avoid that fundamental conflict of interest that arises if you're playing for the banks' business in this very important public policy realm.
Conservative