Should federally regulated financial institutions have more flexibility when it comes to undertaking non-financial activities, including financial technology activities? The federal Department of Finance announced a consultation on October 17 to examine this and related matters.
Back in 2018, the Budget Implementation Act, 2018, No.1, amended the Bank Act to give FRFIs powers to invest in fintechs but regulations were never published until now. Specifically, the 2018 amendments:
- Expanded the scope of permitted non-financial activities by removing restrictions on the types of information that FRFIs may use when undertaking information processing and information technology activities, modernizing language that specified the types of information technology activities that are permitted, and creating a new permission to undertake any activity that relates to the provision of financial services by the FRFI.
- Removed the requirements to seek prior Minister of Finance approval before engaging in, or investing in an entity that undertakes, permitted non-financial activities.
- Created a new category of permitted investments, which enables FRFIs to acquire a controlling or substantial investment in an entity that engages in non-permitted non-financial activities, but only where a majority of the entity’s overall business consists of financial service activities.
- Expanded the ability of FRFIs to act as agents in respect of permitted non-financial activities and make referrals by expanding the referral power from permitting FRFIs to refer “any person to a financial service provider,” to allowing them to refer “any person to any person.”
CCUA is preparing a response to the consultation and is currently seeking member feedback. Please share your comments and questions with me at ssandhu@ccua.com by November 9, 2026.
The full consultation can be found here, and comments will be accepted until November 16, 2026.
