Thank you, Mr. Chair.
Thank you, all, for being here. I have several questions, so I'll get right to it.
For me, the big elephant in the room, what we haven't talked about.... Some of the information in a lot of the media reports that came out was in regard to sales tactics around mutual funds. I know this is not part of the FCAC's oversight. However, I am wondering if there is a significant gap in your oversight. Perhaps when these offices were established, and the distribution of oversight....
I remember that, not that long ago, when you wanted to make investments, it wasn't always through your bank; it was somewhat of a separate investment institution. Now, when the two are so uniquely commingled, and you go in and want to sign up for a credit card or do your regular banking.... Mr. Hannah, you said that banks are in the relationship business. You said that several times. I can speak to that. In my community, I know my bankers, people I've dealt with for almost my entire life. When you are in the business of building relationships, you go in and all of sudden...“Hey, I see you have a lot of money in this savings account.” That would be regulated under FCAC, as well as any sales tactics, but if you move this into an investment portfolio that the bank now also manages, it is no longer regulated by the FCAC or its oversight.
It is my understanding that the Canadian Securities Administrators oversees each provincial securities regulator. From doing some research and from media reports, it is my understanding that in 2013 the Canadian Securities Administrators was saying that sales practices around mutual funds were a concern. Spelling “adviser” with an “e” or with an “o” actually makes a great difference to consumers, and we talk about literacy. For me, the missing piece is the fact that banks have completely different financial service packages now than they did when the oversight was first established.
Is there not a large gap, in terms of oversight and regulation, to start bringing some of these provincial and territorial oversight groups together and have the FCAC look at sales techniques within the four walls of the banks, and stop having them all in silos?