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Ottawa, December 19, 1996 Government Announces Details of Task Force on the Future of the Canadian Financial Services SectorRelated documents: Minister of Finance Paul Martin and Secretary of State Doug Peters today announced the mandate and makeup of a key advisory group, the Task Force on the Future of the Canadian Financial Services Sector. "I am pleased that Jim Baillie has agreed to Chair this impressive group. He and the other members have a large and important task ahead of them, and I don't believe we could have chosen better people for the job," Minister Martin said. Task Force members are all from outside government. They include individuals with a wide range of experience, skills and interests. This well-rounded group can reflect consumer and small business perspectives as well as more general business and public policy views. "Canadians already benefit from a top-notch financial system that is safe, sound and efficient. I have asked these people to take a close look at the rapidly changing world and tell me what needs to be done to ensure our financial system remains strong and dynamic as we move into the 21st century," the Minister added. The Task Force may make recommendations on any public policy issues that affect the environment within which Canada's private sector financial services providers operate. Among other matters, the Task Force will be advising the government on ways to enhance:
The Task Force is required to make its recommendations to the Minister of Finance by September 1998. A list of Task Force participants and copy of the terms of reference and questions to be addressed are attached. ___________________
Task Force on the Future of the Canadian Financial Services SectorChair
Members
Research Director
Task Force Terms of ReferenceGiven that:
and
A Task Force on the Future of the Canadian Financial Services Sector is established. The Task Force will inquire into public policies affecting the financial services sector and make recommendations to enhance:
The Task Force will supervise research and analysis of relevant issues which it considers necessary to provide the basis for arriving at recommendations and will draw upon the Payments Systems work of the Department of Finance and its Advisory Committee as appropriate. It may make recommendations on the full range of public policy issues that affect the environment within which financial service providers operate. The Task Force will report to the Minister of Finance with its findings and recommendations by September, 1998. Task Force QuestionsThe Task Force will address issues affecting private sector financial institutions and non-traditional providers of financial services. In addressing these issues the Task Force will take into consideration the appropriate policy framework for giving effect to public policy objectives for the financial services sector, including those of maintaining the safety and soundness of the sector. The Task Force mandate should not be interpreted to indicate that further intervention in the financial services sector is necessarily warranted. The types of questions that the Task Force will consider in making its recommendations will include, but not be limited to, the following: 1. Promoting Job Creation, Economic Growth & the New Economya) What are the key elements of the public policy environment that will allow the financial sector to most effectively contribute to future economic growth and job creation within the sector and for all regions of Canada? b) In what ways can the public policy framework assist the evolution of the financial services sector so it can best meet the needs of the rapidly evolving new economy, including a growing number of knowledge-based and high technology firms? c) In what ways should the financial services sector evolve to ensure that the needs of small businesses are adequately met? 2. Promoting Competition, Efficiency and Innovation within the Sectora) Is the trend towards increased concentration in our financial sector likely to continue and, if so, what are the implications of this movement? How should public policy respond to these issues? b) What are the key considerations that need to be taken into account when the regulated financial sector and the unregulated sector provide competing products? Are changes in the public policy environment required to maintain a reasonably level playing field between regulated and unregulated providers of financial services? c) What should be the role of foreign financial institutions in Canada's financial sector? 3. Globalization/International Competitivenessa) What international pressures will shape future developments in our financial sector and what are the implications for consumers and public policy? b) How important is it that our financial institutions be able to compete in international markets? To what extent is the size of our financial institutions a critical factor in their ability to compete in foreign markets? How should these considerations affect public policy? c) Are our financial institutions making full use of their competitive strengths in foreign markets, and if not, what are the contributing factors? d) Is the current legislative/regulatory framework adequately supporting the international competitiveness of Canadian financial institutions? If not, what changes might be appropriate? 4. Impacts of Technologya) Should changes be made to Canada's legislative/regulatory framework to allow financial institutions to take full advantage of new technologies to develop innovative new products and delivery systems to meet the emerging needs of businesses and consumers? b) Do we have a good understanding of the risks arising from technological advances and product innovation in financial services? Can the regulatory regime respond to these risks? For example, can the regulatory regime adequately handle the impact of technology on disintermediation in the delivery of financial services? Is the regulatory system adequate in an environment where very large transactions can be accomplished instantaneously? 5. Promoting the Best Interest of Consumersa) Does the current regulatory framework for financial institutions provide reasonable protection of consumers' rights and interests? b) To what extent does horizontal legislation (such as the Competition Act) properly protect the interests of consumers in their dealings with financial institutions? c) What obligations does the financial services sector have to provide financial services to all Canadians, including those with low income? 6. Appropriateness of RegulationIs the existing degree of regulation and supervision for Canadian financial institutions no more than is required to give effect to public policy objectives? |
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