Finance committee  —but that's not something that ADR Chambers is currently empowered to do.

Finance committee  That's correct.

Finance committee  Under securities rules, the firms must participate in our service, yes.

Finance committee  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.

Finance committee  Our charges are based upon a formula that was developed that allocates it amongst all the players based on their volume market share in the marketplace. With ADR Chambers, there's not the same degree of transparency as to how they do that. I suspect it was probably a combination of a retainer on their part plus probably something on a per-complaint basis.

Finance committee  Yes.

Finance committee  Pretty much all of the countries that you would see as comparable to Canada have a statutorily underpinned ombudsman. We're really one of the last of our kind, where we were an industry-created body in the form of a non-governmental organization. Most, over time, evolved to become statutory.

Finance committee  I don't think we'll be viable if another bank goes, or if we end up with a multiple-provider environment. I think it's that simple.

Finance committee  Fundamentally, if one looks at the court system in Canada, the average consumer complaint against a bank or financial service firm is very small. In banking, they're under $10,000. It's not economically viable to use the courts for the resolution of these complaints. It's for that reason that 16 years ago there was a sense that an alternative to the courts was needed.

Finance committee  It would.

Finance committee  I think that's a fair characterization. The difference, though, between regulations and fair dispute resolution is significant. The regulations provide the rules by which everyone must play. An independent body, though, applies those rules in a way that finds fairness in individual complaint situations.

Finance committee  Thank you for the question, Mr. Julian. From our perspective the legislation touches only peripherally on the mandate we currently perform for the system. With this hearing and the discussions around us five, we saw the opportunity to have the committee consider one of two options.

Finance committee  Thank you, Mr. Chair and finance committee members, for the kind invitation to appear before you today. We greatly appreciate the opportunity to speak with you about some of the issues facing Canadians at a critical time for the financial consumer protection framework of the country.