Financial watchdog says controls to mitigate sales risk at banks 'insufficient'

TORONTO - Canada's financial consumer watchdog says there are "insufficient" controls in place at the country's biggest banks to prevent sales of financial products that are misrepresented or unsuitable for customers.

The Financial Consumer Agency of Canada also says the banks' sales-focused culture elevates the risk that employees may flout consumer protection rules.

The agency released the findings today after completing a review of Canada's Big Six banks following media reports last year alleging questionable sales tactics.

The FCAC adds it's investigating alleged breaches of rules of conduct, designed to protect consumers, that may have been identified during its review.

The FCAC says its review did not find widespread misselling, which is selling products that are unsuitable or where the consumer is provided with incomplete or misleading information, at the banks.

However, it concludes that the banking culture is predominantly focused on selling and that increases the risk that client interests are not always given the appropriate priority.

The agency also says the controls these banks have in place to mitigate the risks are "insufficient" and "underdeveloped."

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