Public Safety Committee on Feb. 27th, 2019

[Normand Lafrenière]

They have more branches on the U.S. side, I think.

[Dave MacKenzie, Conservative, Oxford, ON]

Yes. You can bank at TD in the United States—they just call it TD; they don't use “Canada Trust”—and your bank account is directly connected to your bank account in Canada.

We can have our rules in Canada, and we can have our rules in the provinces, but once it gets into that bank, is there anything that would prohibit them—under what was proposed—from selling that information to another fintech?

[Steve Masnyk]

I don't know. In TD's case, you would probably have to ask TD that question.

[Dave MacKenzie, Conservative, Oxford, ON]

Do you have any concern about that?

[Steve Masnyk]

I don't know how TD or any other bank operates. You would probably have to ask them.

[Dave MacKenzie, Conservative, Oxford, ON]

I'm concerned about the sharing of information when it goes across borders. Whatever we agree to today, technology tomorrow changes the whole picture. That's why I'm concerned. I know the chair was sensitive to The Globe and Mail article of a few months ago, but there's a reason why government may not want to talk about it. That's what concerns me.

[Steve Masnyk]

I have nothing to add on that.

[Normand Lafrenière]

The two sections of the act that were approved in last year's budget basically allowed banks or financial institutions to share information with other organizations. They allowed them to sell, transmit or exchange whatever information with fintechs.

These are the concerns we expressed at the time. What is it that's before us? Who will control that information? Would it be the consumer, or would it be the financial institution? We're just raising questions that need answers.

[Dave MacKenzie, Conservative, Oxford, ON]

Thank you.

[The Chair, Liberal, John McKay]

Thank you, Mr. MacKenzie.

Mr. Picard, you may go ahead for five minutes.

[Michel Picard, Liberal, Montarville, QC]

Thank you, Mr. Chair.

Mr. Lafrenière, do any life insurance companies belong to your association?

[Normand Lafrenière]

No, just property and casualty insurance companies.

[Michel Picard, Liberal, Montarville, QC]

I see.

No one cares whether I have one or two fridges in my apartment. I agree with you. However, the fact that I have three or four fridges or certain big-ticket items may be of interest to those wanting to know my personal situation. Would you not agree that personal information that may seem trivial could be seen as extremely valuable in another context?

[Normand Lafrenière]

Yes.

[Michel Picard, Liberal, Montarville, QC]

As you mentioned earlier, the new measures allow for data sharing, and as a result, insurance companies can obtain information from banks. Could you tell us what that relationship covers in terms of data?

[Normand Lafrenière]

It's not in force yet. It's subject to regulation.

[Michel Picard, Liberal, Montarville, QC]

I see.

[Normand Lafrenière]

The law was changed to allow for that, but the regulations have to be brought in, and that hasn't happened yet.

[Michel Picard, Liberal, Montarville, QC]

Very well.

[Normand Lafrenière]

It's not in force precisely because of the open banking study currently being conducted. That's what we're trying to figure out.

[Michel Picard, Liberal, Montarville, QC]

Could any of your members' transactions be viewed as financial transactions made for commercial gain?

[Normand Lafrenière]

Of course. Being financial institutions, we engage in financial transactions. Since people pay for insurance coverage, that's part of it.

[Michel Picard, Liberal, Montarville, QC]

Security-wise, how would you rate your systems as compared with the banks?

[Normand Lafrenière]

Our system security is very good.

[Michel Picard, Liberal, Montarville, QC]

How does it stack up against the banks?