Finance Minister Paul Martin and Secretary of State (International Financial Institutions) Jim Peterson announced the implementation of Bill C-8 today, establishing the Financial Consumer Agency of Canada and amending the regulatory framework for financial institutions.

New technical regulations will essentially allow the bank merger process to commence. Bill C-8 reforms the policy framework for the financial services sector, which includes domestic and foreign banks, trust companies, insurance companies, the credit union movement and other financial institutions.

The legislation received Royal Assent on June 14. “The measures contained in Bill C-8 will help to ensure that the Canadian financial services sector continues to be among the safest and most accessible in the world,” Peterson said. “The legislation will promote efficiency and growth in the sector, foster international competitiveness and domestic competition, empower and protect consumers of financial services, and improve the regulatory environment.”

Martin added that, “the legislation is designed to foster competition by facilitating entry into the sector, expanding access to the payments system, and offering more regulatory flexibility to credit unions and foreign banks.”

The bill also establishes the Financial Consumer Agency of Canada, which begins operations today. According to Peterson, “The FCAC will play a dual role: enforcing compliance with consumer provisions and educating consumers about how those provisions best benefit them.”