I would preface this by saying that this is an issue that feels a bit like a solution in search of a problem. The policy intent, as we understand it, is to avoid consumer confusion, but we've seen no evidence of consumer confusion. I've been a member of a credit union in the past and I recently joined another credit union. My personal experience is that they have a very extensive on-boarding process, and it really leaves no room for doubt in terms of what kind of financial institution you're joining.
We respect, though, that the Department of Finance is seeking to avoid consumer confusion. What we are going to be proposing—it's a consultation process that ends at the end of this week—is a fairly light-touch change to that section of the Bank Act that would allow for a “reasonable person” test. Recognizing that the original intent was that there would be avoidance of any deliberate misleading, we think that it is possible to achieve with some changes a principle-based approach that will assist in avoiding that confusion. But fundamentally, we will still allow for the usage of what we believe are the very common terms of “bank” and “banking”.
Thank you.