Guideline on the consultation process for branch closures
Publication Date: November 22, 2024
Effective Date: November 22, 2024
I. Introduction
1. The Financial Consumer Agency of Canada (FCAC) has developed this Guideline to establish:
1.1. expectations for the policies and procedures a deposit-taking institutionFootnote 1 (DTI) should have in place regarding a stakeholderFootnote 2 consultation process in the case of the cessation of certain activitiesFootnote 3 at a retail deposit-taking branch (branch) or a branch closureFootnote 4 (collectively, policies and procedures), and
1.2. in instances where the Commissioner of FCAC (the Commissioner) has required the DTI to hold a pre-closure meeting, the general rules for convening and conducting such a meeting (see Annex I).
2. The Bank ActFootnote 5 and the Trust and Loan Companies ActFootnote 6 (TLCA) and their associated regulations include provisions related to branch closures.
3. The Bank Act and the Notice of Branch Closure (Trust and Loan Companies) Regulations indicate that under certain conditions, the Commissioner shall require a DTI to convene and hold a meeting regarding the branch closure. These conditions include, but are not limited to, ascertaining the views of interested persons in the community with regard to 1) the closure of the branch; 2) alternate service delivery by the DTI; and 3) measures to help the branch’s customers adjust to the closure.
4. A DTI is responsible for ensuring it meets the applicable requirements established in the Bank Act or the TLCA and their respective regulations.
5. FCAC also recognizes that a DTI may tailor its policies and procedures to align with the nature, size, complexity and risk profile of its business, distribution channels and products and services.
6. This Guideline should be read in conjunction with the Bank Act, the TLCA, and their associated regulations.
II. Key principles
7. While the decision to close a branch is a business decision, prior to the closure of a branch, DTIs are expected to hold a comprehensive consultation with stakeholders that adheres to the principles set out below. A DTI should have policies and procedures in place to ensure the consultation process meets these principles.
Effectiveness
8. A DTI’s policies and procedures should be comprehensive and implemented to ensure the pre-closure consultation is carried out in an effective, fair, consistent and open manner.
Timeliness
9. A DTI’s policies and procedures should ensure the DTI provides sufficient notice to allow time for input from stakeholders.
Accessibility
10. A DTI’s policies and procedures should ensure stakeholders can easily understand and participate in the process.
11. By following these principles, a DTI should be able to demonstrate that it has 1) conducted an effective, timely and accessible pre-closure consultation with its stakeholders; 2) listened to the views and concerns of stakeholders; 3) taken reasonable steps to address stakeholders’ concerns; and 4) taken reasonable steps to assist customers in making alternate banking arrangements. In the event a DTI cannot demonstrate the above, the Commissioner may requireFootnote 7 the DTI to convene and hold a meeting with stakeholders regarding the branch closure.
III. Effective consultations
12. A DTI’s process for developing and implementing its policies and procedures should ensure they are:
12.1. documented
12.2 comprehensive
12.3. easily accessible to all staff involved in the branch closure process, including those involved in any consultations and front-line branch staff who may interact with stakeholders
12.4. approved by its senior management
12.5. implemented in a consistent manner for each branch closure, recognizing that circumstances of each closure may dictate some variation depending on the branch location or any other relevant factors
12.6. subject to periodic review
12.7. subject to an assessment process to determine the effectiveness of consultations that have taken place
13. A DTI’s policies and procedures related to branch closure should:
13.1. ensure that stakeholders have been consulted sufficiently to ascertain their views and concerns
13.2. ensure sufficient training to enable front-line staff to communicate with and provide guidance to stakeholders
13.3. ensure the DTI shares key factors on which its decision was based, including consideration of alternatives, if any
13.4. provide for different forms of consultation depending on the circumstances of each branch closure. These could include, for example:
13.4.1. community meetings facilitated by the DTI, that are held well in advance of the proposed closure and that include consumers, local business representatives, local politicians, etc. (when organizing community meetings, a DTI should consider the criteria outlined in Annex I)
13.4.2. in-branch information sessions or workshops
13.4.3. client-calling programs and other outreach programs by the closing branch
13.4.4. a dedicated toll-free phone number available to stakeholders if they wish to contact the DTI about the branch closure
13.4.5. one-on-one meetings between stakeholders and branch staff, branch managers or regional managers
13.4.6. web-based consultations (for example, e-consultations and/or internet surveys) that reach a broad group of stakeholders
13.4.7. consultations with public bodies that might seek similar feedback from stakeholders (for example, chambers of commerce and/or business improvement areas)
13.5. ensure the DTI clearly documents the steps taken throughout the consultation process, including details on the results of each of these steps (this information can be used in instances where the Commissioner is considering whether to require a meeting pursuant to section 627.995 of the Bank Act or section 9 of the Notice of Branch Closure (Trust and Loan Companies) Regulations)
IV. Timely consultations
14. A DTI’s Policies and Procedures should explain and detail how the DTI will:
14.1. provide written notice to the Commissioner, to each customer of the branch, to the public and to applicable public officials that meet or exceed the requirements in the Bank ActFootnote 8 or the Notice of Bank Closure (Trust and Loan Companies) Regulations, as the case may be
14.2. hold consultations well in advance of a closure, that consider the circumstances of each branch closure and that are based on factors such as:
14.2.1. the size of the branch/number of affected customers
14.2.2. the types of products and services offered by the branch
14.2.3. the makeup of the customer base (business versus natural persons, the percentage of vulnerable customers, etc.)
14.2.4. the ability of customers to make or find alternative arrangements
14.2.5. the availability of alternative branch locations (either of the DTI or of a competitor) and their proximity to the closing branch
V. Accessible consultations
15. A DTI’s policies and procedures should explain and detail how the consultation process for any branch closure will be conducted, and how the consultations will be made accessible to stakeholders. The policies and procedures should address how the DTI will:
15.1. ensure the consultation is advertised and communicated as broadly as possible
15.2. ensure effective communication with its stakeholders throughout the branch closure process (that is, from the date the notice of branch closure is issued through to the day the branch will close)
15.3. ensure that when customers are transferred to another of its branches, either or both the current and new branch will assist customers during the transition
15.4. know the audience, thereby ensuring the consultation process is appropriate for the members of the affected community (for example, a DTI should not hold only web-based consultation meetings in general, but especially in communities where high-speed internet is not available or where few people have access to it)
15.5. target outreach efforts to those who may be more severely impacted by the closure (for example, seniors, those with low incomes, those who access social benefits, those living in rural and remote areas, etc.)
15.6. enable stakeholders with limited resources or living in isolated or remote areas to attend meetings by arranging transportation and ensuring physical accessibility. Where a stakeholder cannot attend a meeting and indicates they would like to provide input, the DTI should make a reasonable attempt to obtain their comments or concerns through other means
15.7. have staff or translators available at meetings who can enable participants to communicate in their preferred language (in the notice of branch closure sent to customers of the branch, the DTI should provide the option for customers to contact the DTI to indicate their preferred language)
15.8. ensure a portion of the consultation is held in a known or familiar meeting location in the vicinity of the closing branch (for example, in branch, community hall, town hall, Legion hall, library, etc.). (Note: where restrictions on public gatherings prevent the holding of an in-person meeting, the DTI should have contingencies in place to conduct meetings in an alternative format.)
15.9. ensure the consultation is conducted in a manner that is open, transparent, and focused on soliciting stakeholders’ views about the closure of the branch, and addressing their needs and concerns about issues such as alternate service delivery by the DTI and measures to help stakeholders adjust to the closure
VI. Miscellaneous
16. Questions relating to this Guideline should be sent
- by email addressed to compliance@fcac-acfc.gc.ca or
- by mail addressed to:
Financial Consumer Agency of Canada
Attention: Deputy Commissioner, Supervision and Enforcement
427 Laurier Ave West, 5th Floor
Ottawa, ON K1R 1B9
Annex I - Rules for convening and conducting a meeting required by the Commissioner
DTIs must follow a number of steps prior to closing a branch or ceasing certain activities, including holding effective pre-closure consultations. These consultations can, but do not necessarily have to, include holding a meeting with affected stakeholders.
Where the Commissioner determines that a DTI has not conducted an effective consultation on a branch closure or the cessation of activitiesFootnote 9 and where the Commissioner receives an admissible requestFootnote 10 for such a meeting, the Commissioner shall requireFootnote 11 a DTI to hold a meeting prior to the closure.
The following criteria establish the general rulesFootnote 12 that apply when a DTI is required to convene and conduct a meeting. FCAC will communicate specific requirements to the DTI regarding the timeframe for and the conduct of the meeting.
Timing of the meeting
1. The Commissioner, in the letter requiring the DTI to convene and conduct a meeting, will indicate that the meeting must be held before the branch closes and within the timeframe established by the Commissioner.
2. The meeting must be conducted during evening hours, during a weekend, or at an alternative time that is convenient for all interested parties and allows for maximum community participation.
Location of the meeting
3. The meeting must be held in a publicly accessible building that provides access for persons with disabilities and is in the vicinity of the closing branch.
Attendance at the meeting
4. All interested members of the community and interested parties should be able to attend the meeting.
5. DTI officials who are knowledgeable about or responsible for the closing of the branch must attend the meeting.
Notice of the meeting
6. If the closing branch is in an urban area, or in a rural area where there is a retail deposit-taking branch located within a traveling distance of 10 kilometres from the branch, the DTI must:
6.1. notify the Commissioner, customers of the branch, and the public about the meeting in the manner specified and within the time frame established by the Commissioner in the letter requiring the DTI to convene a meeting
6.2. include in the notice that there is a requirement to convene and conduct a meeting for the purpose of exchanging views about the closure of the branch or the cessation of activities, including alternate service delivery by the DTI and measures to help the branch’s customers adjust to the closure or cessation of the activity. Such notice must also include the date and time of the meeting, and its location
6.3. post a notice of the meeting in a conspicuous place in a public area of the branch with the information specified in paragraph 6.2, immediately upon confirming the time and location of the meeting
6.4. publish a notice of the meeting with the information specified in paragraph 6.2 in a newspaper that is in general circulation at or near the place where the branch is located, immediately upon confirming the time and location of the meeting
7. If the closing branch is in a rural area where there is no retail deposit-taking branch located within a traveling distance of 10 kilometres from the branch, the DTI must:
7.1. notify customers of the branch about the meeting in the manner specified by and within the time frame established by the Commissioner in the letter requiring the DTI to convene a meeting
7.2. notify the chairperson, mayor, warden, reeve, or other similar chief officer of the municipal or local government body in which the branch is located about the meeting in the manner specified by and within the time frame established by the Commissioner in the letter requiring the member DTI to convene a meeting
7.3. include in the notice that there is a requirement to convene and conduct a meeting for the purpose of exchanging views about the closure of the branch or the cessation of activities, including alternate service delivery by the DTI and measures to help the branch’s customers adjust to the closure or the cessation of the activity. Such notice must also include the date and time of the meeting and its location
7.4. post a notice of the meeting in a conspicuous place in a public area of the branch with the information specified in paragraph 7.3, immediately upon confirming the time and location of the meeting
7.5. publish a notice of the meeting in a newspaper that is in general circulation at or near the place where the branch is located with the information specified in paragraph 7.3, immediately upon confirming the time and location of the meeting
Conduct of the meeting
8. The DTI is responsible for convening and conducting the meeting. The DTI must:
8.1. if applicable, provide those attending the meeting with copies of the agenda and any presentations to be made by the DTI. Where the DTI is aware that particular stakeholders will be attending the meeting and it has their contact information, the DTI should provide the agenda and any presentations several days in advance of the meeting.
8.2. introduce the key officials present, including FCAC representatives and, if applicable, local community leaders
8.3. provide adequate time for questions and comments from all participants
8.4. conduct the meeting in a manner that encourages a meaningful exchange of views between interested parties and DTI officials
8.5. take minutes of the meeting that record:
8.5.1. the names of the DTI officials who attended the meeting
8.5.2. the estimated number of stakeholders who attended the meeting
8.5.3. whenever possible, the names of any community groups that are present at the meeting
8.5.4. the issues raised by the participants at the meeting and the responses provided by the DTI
9. The DTI must bear all costs associated with the meeting.
Page details
- Date modified: