Mr. Chair, I am sure that if we checked the blues, we would find that there were comments made that certainly need to be looked at.
I appreciate the opportunity to speak regarding the financial services sector in Canada. I would like to focus my remarks on the issue of credit cards. As we know, the use of credit cards has become an integral part of how many Canadians handle their personal finances. Indeed the Canadian credit card market is one of the most competitive in the world, with more than 600 card offerings. Banks, credit unions and caisse populaires are the principal issuers, however, retailers have also jumped on the bandwagon, offering a variety of financial programs to meet the credit and transaction needs of the customer.
The competition among the companies is fierce. I am sure that hon. members have seen ads offering convenient payment options, low borrowing rates, point programs, insurance coverage, and retailer discounts. It is important that consumers be provided with adequate information so they can make informed choices about their banking services. That is why the government is continuing to work to improve it.
Before I address the specific issues of credit cards, given the predominance of these financial products on the markets, I would like first to take a moment to provide some background to key federal legislation concerning financial institutions in Canada.
Indeed the impact of federal legislation and initiatives designed to protect customers within the financial sector is an important element of the government's ability to service Canadians. Hon. members will no doubt recall Bill C-8, which implemented a new policy framework for Canada's financial services sector.
The legislation was the culmination of a process that began in 1996 with the establishment of the Task Force on the Future of the Canadian Financial Services Sector and the payment advisory committee. In September 1998 the task force presented the government with its report entitled “Change, Challenge, Opportunity”, which was subsequently reviewed by two parliamentary committees.
The committees in turn conducted extensive public consultation and presented the government with their own recommendations. The consultation process led to the emergence of a broad consensus of measures to improve the sector. That consensus provided the solid foundation for reforming Canada's financial services sector in “A Framework for the Future”, the policy paper released by the government in June 1999.
Bill C-8 contained a number of measures that focused on four main areas: one, promoting the efficiency and growth of the financial services sector; two, fostering domestic competition; three, empowering and protecting consumers; and four, improving the regulatory environments. While all these points are important, I would like to focus my remarks today on the third point, empowering and protecting consumers.
There are concerns that Canadians' personal information given to credit card companies may be subject to the United States of America's patriot act. It has been suggested that Canadian credit card companies and Canadian banks with offices in the United States could be forced to disclose the personal information of their Canadian clients. To this end, the government is committed to doing everything it can to protect the personal privacy of Canadians.
Many safeguards are already in place to protect our rights and privacy. They include the Canadian Privacy Act, the Personal Information Protection and Electronic Documents Act, and Canada-U.S. agreements stipulating conditions under which information can be shared between the two governments. We are also cooperating with the Office of the Privacy Commissioner on the planned audit in 2004-05 of the transfer of personal information between Canada and the United States.
One of the important components of Bill C-8 for consumers was the establishment of the Financial Consumer Agency of Canada. This agency was established to consolidate and strengthen oversight of consumer protection measures in federally regulated financial sectors and to expand consumer education. While some consumer protection activities existed previously, they were dispersed among various federal entities. The creation of the Financial Consumer Agency of Canada was one of a series of initiatives resulting from the extensive period of study and public consultation of financial sector reform that culminated in the legislation contained in Bill C-8.
Established in 2001, the Financial Consumer Agency of Canada's mandate is to protect and educate consumers of financial services. The agency was established by the federal government to strengthen oversight of consumer issues and expend consumer education in the financial sector.
As a federal regulatory agency, the Financial Consumer Agency of Canada is responsible for enforcing many of the federal laws that protect consumers in their dealings with financial institutions.
The responsibilities of the agencies are to: ensure that federally regulated financial institutions comply with federal consumer protection laws and regulations; monitor financial institutions' business practices, known as voluntary codes of conduct, concerning small business lending and the use of debit cards; educate consumers about their rights and responsibilities; help Canadians get the information they need to be more informed consumers of financial products and services.
It is also important for Canadians to know which financial institutions fall within the mandate of the agency. These financial institutions include all banks as well as insurance companies that are federally incorporated or registered. Also included are trust and loan companies and cooperative credit associations that are federally incorporated or registered.
Through cooperation with other organizations, information programs, a toll free consumer help line and a comprehensive website, the agency promotes greater awareness of financial systems and the rights and responsibilities of consumers.
Again, the protection of the personal information of Canadians is of paramount importance to the government. We will continue to work to ensure that it is protected.