Safeguarding seniors
Banks adopting code of conduct for seniors welcome news
The P.E.I. Senior Citizens’ Federation welcomes news of the banking industry adopting a code of conduct for the delivery of banking services to seniors.
The Financial Consumer Agency of Canada (FCAC) will monitor banks to ensure they comply with the code.
The code is an important first step in guiding banks in their delivery of services to meet the needs of seniors. Banks who have signed on to the code must abide by its principles.
The code will come into effect by Jan. 1, 2021. However, effective immediately, banks must abide by principles 5 and 6, which will require them to mitigate potential financial harm to seniors and take into account market demographics and the needs of seniors when proceeding with branch closures.
“We support the recent adoption of a code of conduct for the delivery of banking services to seniors,’’ says P.E.I. Senior Citizens’ Federation President Russ Noiles.
“Financial abuse is the most common form of elder abuse in Canada. Since many Island seniors do their banking in person, having frontline banking employees trained to protect seniors’ interests is best for everyone. We would, however, like to see the code of conduct become a requirement rather than be voluntary.”
The federation, which is a province-wide, non-profit charitable organization consisting of over 50 seniors’ clubs, groups and organizations, advocates for a better quality of life for seniors.
Should FCAC find that a bank has breached a voluntary code, it will take appropriate action as outlined in its supervision framework.
FCAC will continue to engage with seniors’ groups, financial institutions and other public, private, not for profit and academic sector stakeholders on specific issues related to seniors and banking.
“As Canadians live longer, some seniors may face challenges that impact their ability to bank,’’ says Werner Liedtke, assistant commissioner with the Financial Consumer Agency of Canada.
“This voluntary code of conduct marks an important first step in guiding banks in their delivery of products and services that meet the needs of seniors. FCAC will actively monitor banks’ compliance with this code and ensure its principles are upheld.”
Folomena Tassi, federal minister of seniors, says the government is committed to making banking safer and more secure for seniors.
“As part of this commitment we called for the creation of a code of conduct to guide banks in their delivery of banking products and services to seniors,’’ she says.
“This code will contribute to a positive banking experience that meets the needs of seniors.”
The Fall Economic Statement 2018 issued by the minister of finance stated that “the Financial Consumer Agency of Canada will engage with banks and seniors’ groups to create a code of conduct to guide banks in their delivery of services to Canada’s seniors.”
FCAC engaged with seniors’ groups, financial institutions and experts to identify banking challenges experienced by Canadian seniors. The Agency also conducted public opinion research.