Further to our March 2012
Update on Federal Consumer Protection Measures in which we
reported on the new CG-8 Mortgage Prepayment Penalty Disclosure
Guidance (Guidance) published by the Financial Consumer Agency
of Canada (FCAC), enhancing disclosure of mortgage prepayment
charges, on April 13, 2012, the FCAC announced revisions to the
Guidance, likely in response to early feedback from affected
Federally Regulated Financial Institutions (FRFIs). The revisions
themselves are relatively minor but have the effect of clarifying
the application of the Guidance and the nature of the disclosure
Application of the Guidance
The FCAC has revised the Guidance by adding a footnote
explaining that the stated expectations with respect to mortgage
prepayment disclosure documents apply to both initial mortgage
disclosure statements and mortgage renewal disclosure
Nature of Required Disclosure
The original Guidance stated that FRFIs must include four
elements in mortgage prepayment disclosure documents. The first
element requires FRFIs to disclose the manner in which a mortgage
prepayment charge or penalty is actually calculated by disclosing
the formula or an actual penalty or charge that would be assessed
to the customer. The word "or" has been underlined, to
emphasize these alternatives. In addition, a footnote has been
added explaining that the disclosure should be "brief and
concise" with a view to allowing consumers to understand the
manner in which the charge or penalty is calculated.
While the FCAC does not provide further details, the footnote is
consistent with other initiatives of the FCAC to make personal
finance more accessible to consumers and increase financial
literacy. However, FRFIs will have to take care not to sacrifice
accurate and full disclosure for the sake of accessibility.
It is our understanding that the FCAC has contacted all affected
FRFIs with amended timelines for:
a response as to the compliance status of their mortgage
disclosure documents with the Guidance (May 7, 2012); and
if deficiencies are noted, full compliance with the Guidance
(March 4, 2013).
This will require a review and assessment of the prepayment
charge provisions in all initial mortgage disclosure statements and
mortgage renewal disclosure statements prior the May 7, 2012
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Emotional culture is influenced in great part by the mindset and actions of leadership, although employees also play more of a role than they may realize in creating the culture that exists in the group.
The session will be led by Dr. Robert Brooks, an award-winning author and psychologist. In his presentation, Dr. Brooks will describe the mindset and realistic practices of leaders and staff that help to nurture and sustain a culture characterized by positive emotions, satisfying, respectful relationships, a sense of meaning and ownership for one’s work, and enhanced job performance. Examples will be offered to illustrate strategies for developing a positive emotional culture in an organization.
Join leading lawyers from the Blakes Pensions, Benefits & Executive Compensation group as they discuss recent updates and legal developments in pension and employee benefits law as well as strategies to identify and minimize common risks.
Ready? The company wants its in-house lawyers to be on the front lines, but there is little to no training around how to “look for risk,” let alone how to evaluate it or report it. Our special guest, Sterling Miller, will present simple ideas and processes you can use to spot and identify risk, and demonstrate how to evaluate and manage that risk alongside the business.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).