The proposed enforcement of the use of words including ‘bank’, ‘banking’, ‘banker’ and other similar terms by non-banks, has been suspended pending a review.
The restrictions, which would have affected credit unions and other non-banks including many mortgage lenders, was due come into effect from December 31, 2017.
The Department of Finance has released a consultation paper on the use of words restricted by the ‘Bank Act’ as part of its review of the federal financial sector framework.
OSFI says that pending the completion of the consultation it has suspended its compliance expectations.
Responding to the news, the Canadian Credit Union Association’s president and CEO Martha Durdin said:
“We are pleased that the federal government has recognized the need for a common-sense review of this issue. Credit unions provide banking services to millions of Canadians and need to speak to them in a way they can understand.”