Vancity a Leader in Promoting National Code

Leading financial institutions whether they are chartered banks or credit unions need to show Canadians that they care about their finances and are concerned about managing and protecting their investments from fraudsters who have every intention of removing them from their money. Good business practices and governance around them such as having the proper internal controls and staff training to follow are important in this regard.  

In the case of Vancity which is listed as the largest credit union in Canada by the Canadian Credit Union Association (CCUA) outside of Quebec, one way they demonstrate leadership in how they conduct their operation is by following CCUA’s Market Conduct Code. The five key principles in the code are business practices, fair treatment and fair sales practices, access to banking services, transparency and disclosure and complaint handling. This code comes right out and states, “Individuals are entitled to the best possible care of their financial interests. We respect all our provincial regulatory obligations, and continually practice absolute excellence in consumer protection.”  
 

Some important statements under these guiding principles are as follows: 

  • We never take advantage of anyone by misrepresenting the facts, concealing information, or engaging in manipulation, unfair dealings or unethical activities. 
  • We provide information that helps ensure that individuals considering our products and services can make informed and suitable choices. 
  • The credit union is committed to the professional development of our employees, who are trained to provide financial information that individuals can trust. Employees will keep abreast of changes in products and services, industry standards and regulations relevant to their role. 
  • We put a premium on every individual’s financial well-being and financial literacy. 
  • Our whistleblowing procedures allow employees to report incidents of actual or potentially improper or unethical conduct without fear of reprisal or unwarranted negative consequences. 
  • Up-to-date information is made available to individuals before and after a product or service is acquired. Our documents are clear and contain all the financial implications of a transaction. To ensure people are fully informed, when a member or account holder requires a product or service, we provide them with the related documentation. 
  • The credit union examines all complaints and settles them fairly using a process that is accessible to everyone. 

It is important to note here that most credit unions in Canada are provincially regulated so do not fall under the Financial Consumers Agency of Canada’s new and enhanced protections requirements. They include key areas such as whistleblowing, more effective and timely complaints handling, and higher standards for bank sales practices such as broader protections against false or misleading information and broader protections against taking advantage or applying undue pressure. 

This does not mean that as a responsible provincially regulated credit union they should not be delivering high standards of service to their members and be transparent and accountable in this regard.  

As for which credit unions in Canada have adopted the CCUA’s Market Conduct Code you should ask your credit union as it is obvious with Vancity when you go online to search them it is proud to highlight the Market Conduct Code prominently.  

In speaking to an official from Manitoba’s Credit Union Central, he says many Manitoba credit unions have adopted the Market Conduct Code. However, in making that point, he emphasized that a credit union is autonomous and therefore is not obligated to follow the national code. If not, you should ask the credit union what standards it has in place to protect and look after your best financial interests given you are entrusting them with your money. 

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