The Financial Consumer Agency of Canada (“FCAC”) has published a proposed Guideline on Whistleblowing Policies and Procedures for Banks and Authorized Foreign Banks (the “Guideline”). The Guideline is intended to help banks — including authorized foreign banks — comply with their obligations under the new Financial Consumer Protection Framework (“FCPC”) of the Bank Act and its associated Financial Consumer Protection Framework Regulations (coming into force on June 30, 2022).
Banks are obligated to establish and implement policies and procedure for dealing with employee reports of wrongdoing (“Whistleblowing Policies”). While FCAC recognizes that banks may tailor their Whistleblowing Policies to fit their particular businesses and circumstances, it nevertheless expects banks to use Guideline principles when developing their Whistleblowing Policies. The Guideline principles include: 1) effectiveness, 2) accessibility, and 3) protection.
Guideline principles
Using the Guideline will ensure that Whistleblowing Policies are effective in achieving their goals, are easy to find, understand and use, and protect employees who report a wrongdoing to the bank.
Effectiveness
Effective Whistleblowing Policies have the following features:
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