The federal government released a consultation paper Tuesday that contemplates bolstering consumer protection in the financial sector.

The paper seeks input on ways to strengthen Canada’s financial consumer protection framework, focusing on three areas: establishing a comprehensive set of principles for consumer protection; possible changes to the existing system; and, ways to improve engagement between regulators, industry, government and consumers to ensure future improvements.

To start, the government is considering the merits of adopting standards, or principles, to anchor the financial consumer code. And, it seeks feedback on whether to do this; and, if so, how the principles should be administered.

It is also considering possible enhancements to the existing regime in a number of areas, including: issues affecting seniors and other vulnerable Canadians; possibly legislating a broad standard of responsibility for financial institutions to consumers; and, reforms to the Financial Consumer Agency of Canada’s (FCAC) powers to enable it to better supervise and enforce consumer protection provisions. It also asks for feedback on how the code should deal with innovation in financial products; how to ensure effective disclosure; and, whether the code should aim to ensure reasonable access to basic banking services.

The paper is out for comment until Feb. 28, 2014. The government anticipates providing a summary of results of the consultation paper next summer, along with roundtable discussions of these issues next year too.

“A consumer code will help Canadians make more informed financial decisions today, and in Canada’s rapidly changing, increasingly digital financial marketplace in the future,” said Maxime Bernier, Minister of State (Small Business and Tourism, and Agriculture).

Lucie Tedesco, commissioner of the FCAC, also announced the final publication of regulations increasing protection of consumers using prepaid cards, along with the launch of consultations on a comprehensive financial consumer code.

“Both the launch of the consumer code consultations and the final publication of the Prepaid Payment Products Regulations have immediate inroads to the work of FCAC,” said Tedesco. “We look forward to reading consumers’ views on that question, because this role is one that is central to our mandate.”