1. SACCO Regulators’ Roundtable November 24, 2008 Hebb, Knight and Associates6/13/2016

2.  Federal and provincial authorities with credit unions/caisses populaires regulated by provincial authorities  Federal Government regulates banks, life insurance companies  Federal Government: Office of the Superintendent Financial Institutions (OSFI); Canada Deposit Insurance Corporation(CDIC), Financial Consumer Agency of Canada(FCAC) 6/13/2016Hebb, Knight and Associates

3. What is consumer protection?  Canadian definition has its origins with the MacKay Task Force Report tabled in 1999. It concluded:  1) there was a lack of competition among financial institutions; and  2) that there was an information and a power imbalance between financial institutions and their customers. 6/13/2016Hebb, Knight and Associates

4.  The report placed great emphasis on transparency and disclosure as key to providing balance to the market  Canada then moved to establish a separate agency tasked with enforcing bank obligations to consumers and with providing information and education  2001 Establishment of the Financial Consumer Agency of Canada 6/13/2016Hebb, Knight and Associates

5.  Consumer provisions  1. Access to basic banking  2. Cashing federal government cheques  3. Complaint handling procedures  4. Disclosure on deposit Accounts  5. Disclosure on cost of borrowing  6. Branch closure notices  7. Public accountability statements  8. Tied selling 6/13/2016Hebb, Knight and Associates

6.  Canadian definition is that disclosure and transparency are the foundation of a good consumer protection regime  Consumer information and education are key to helping consumers make informed decisions  But, is that enough? What about understanding the disclosure 6/13/2016Hebb, Knight and Associates

7.  Three factors contribute to financial literacy  Knowledge: financial products and services  Skills: ability to understand the products and services and ask the right questions  Behaviour: make a good decisions based on the information available 6/13/2016Hebb, Knight and Associates

8.  Unprecedented global crisis with origins in the sub-prime mortgage market in the US  Regulators and governments moving to back stop financial institutions  International cooperation as governments intervene  G-20 taking a leadership role 6/13/2016Hebb, Knight and Associates

9.  G-20 Meeting November 15, 2008  Market Conduct recommendations:  Enhancing disclosure on complex financial products and ensuring complete and accurate disclosure  By March 31, 2009 regulators and accounting standard setters should enhance the required disclosure of complex financial instruments by firms to market participants. 6/13/2016Hebb, Knight and Associates

10.  Governments and regulators have a responsibility but so do financial institutions  Credit Unions have a long history of working with their members to help them make good decisions  Credit unions have been in the financial literacy business longer than governments and other financial institutions 6/13/2016Hebb, Knight and Associates

11.  Canada: FCAC funded by federal government $2 million each year to provide financial education  FCAC has focused mainly on schools to date  Social Enterprise Development Innovations (SEDI) a voluntary sector group launch the Centre for Financial Literacy in November to build capacity in the voluntary sector to help vulnerable consumers 6/13/2016Hebb, Knight and Associates

12.  Credit Unions have been leaders in this area  It is time to step up and use our model to help our members. 6/13/2016Hebb, Knight and Associates