Source: Government of Canada News (2)
March 19, 2025
Ottawa, Ontario
Today, the Financial Consumer Agency of Canada (FCAC) published the findings of a thematic review conducted to find out how small and medium-sized banks (SMSBs) have implemented electronic alerts (e-alerts).
E-alerts enable consumers to make timely and informed decisions about their finances, including avoiding unnecessary fees. All Canadians who bank with federally regulated financial institutions, such as banks, have the right to receive e-alerts under Canada’s Financial Consumer Protection Framework (the Framework). These are sent out when their account balance or available credit falls below a certain threshold ($100 is the default, but consumers can customize the amount).
Thematic reviews are an important part of FCAC’s risk-based approach to supervising banks’ compliance with consumer protection laws and regulations. Thematic reviews provide valuable insights into specific topics or themes, helping to assess compliance and identify risks.
In monitoring the implementation of the Framework, FCAC identified a higher risk of implementation issues with e-alerts among small and medium sized banks (SMSBs). For that reason, FCAC focused its thematic review on those financial institutions.
While the SMSBs assessed in FCAC’s review took steps towards meeting this new requirement, there were several areas for improvement. For example, not all consumers were fully benefitting from e-alerts due to delays, incomplete information or missing contact details.
Each of those SMSBs has been informed of the findings specific to their institution and is required to take corrective actions. FCAC will monitor their response to make sure that they comply with the requirements.
FCAC expects all federally regulated financial institutions, including Canada’s 6 largest banks, to review its report on e-alerts to assess their own compliance and to address any issues or deficiencies in a timely manner.