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Controls on sales practices at Canadian banks ‘insufficient’: watchdog

Interesting read from today’s Globe and Mail

The Financial Consumer Agency of Canada released a report yesterday saying that Canada's Big Six banks have “insufficient” controls to guard against misleading sales tactics. The watchdog did not find evidence of widespread misconduct but the report sheds light on the "sharp focus on sales" at Canadian banks, which could increase the likelihood that employees “missell“ products or services. The FCAC wrote in its report that “the importance employees place on reaching sales targets and qualifying for incentives may lead them to prioritize sales over consumers’ interests.”
Rob Carrick writes in a column that the Big Six will fleece you if you let them: ”The FCAC has some ideas on improving consumer protection for bank customers, all of which sound worthwhile. But there’s more to this problem than profit-hungry banks pressuring employees to squeeze customers. We live in a country that is way too impressed with the financial industry and grants it all kinds of liberties. We encourage the banks to be predators by acting like sheep.”

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