Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.
Issue link: http://digital.canadawide.com/i/309414
federalbudget MortgageBroker mbabc.ca spring 2014 | 15 program (a certification that provides Canada-wide mobility for skilled workers), and legislative changes to regulate Bitcoin. While priorities like these may interest a wide range of Canadians, digging deeper in the budget documents oen reveals information that is equally important to specific business sectors, such as mortgage brokers. While much of this information comes from government-generated publications and one has to appreciate it accordingly, here are some of the gems. e Budget 2014 document in Chapter 3.4: Supporting Families and Communities provides the following priorities concerning consumers and the financial sector. To avoid interfering with the government's messages I have le the text, but for a few minor edits, unchanged. Putting consumers first in the financial sector Consumers should be confident that they are protected by a high-quality regulatory framework that puts their interests first. Canadians must be able to make informed decisions about financial products and services and be assured of fair treatment. … Economic Action Plan 2014 continues to support financial consumers through new initiatives to ensure consumer protection, increase awareness and encourage financial literacy, enhance access to basic banking services and promote fairness and transparency. Reviewing Canada's deposit insurance framework Economic Action Plan 2014 announces the launch of a comprehensive review of Canada's deposit insurance framework. Deposit insurance protects Canadians' savings of up to $100,000 in the event that a federally regulated deposit-taking institution fails. At the federal level, the Canada Deposit Insurance Corporation ( CDIC) administers deposit insurance for CDIC members, including banks and other financial institutions. e Government is launching a comprehensive review of Canada's deposit insurance framework. is review will ensure that deposit insurance provides adequate protection for the savings of Canadians, taking into account lessons from the recent financial crisis and significant shis in the global banking landscape. Promoting fairness and transparency in the credit card market e Government will improve fairness and transparency in the credit card market. Merchants pay fees each time they accept credit card payments from consumers. As with any other input cost, merchants pass some or all of these costs to consumers in the form of higher retail prices. Canada has among the highest credit card acceptance costs in the world. In 2013, the Competition Tribunal found that certain of Visa's and MasterCard's network rules have an adverse affect on competition, which results in higher costs to merchants. In light of this finding, the Government will work with stakeholders to promote fair and transparent practices and to help lower credit card acceptance costs for merchants, while encouraging merchants to lower prices to consumers. e Code of Conduct for the Credit and Debit Card Industry in Canada was created in 2010 to promote merchant choice, transparency and disclosure, and fairness in the credit card market. To further improve business practices, the Government intends to strengthen the Code of Conduct, in consultation with stakeholders. Raising financial consumer awareness e Government will continue to raise public awareness about the costs of and alternatives to payday lending and other high interest rate lending products, collateral charge mortgages, and bank powers of attorney and joint accounts. Payday lending Payday lending and other high-cost loans are an extremely expensive way for consumers to access short-term lending. Payday lenders typically target vulnerable populations, including low-income workers and families, persons with disabilities and the elderly. In 2007, at the request of the provinces, the Government amended the Criminal Code to allow provinces with designated licensing regimes to regulate payday lenders and payday loans. e Government is committed to working with Federal Budget Priorities • p14-17_FinancialPriority.indd 15 14-05-08 2:37 PM