Canadian banking regulator, the Office of the Superintendent of Financial Institutions is reviewing the sales practices followed by several major banks in the country, looking at inherent reputational risks and the potential impact on the institutions’ financial stability. The exercise comes along an inquiry by the country’s financial consumer watchdog into practices at Canada’s biggest banks, prompted by news reports alleging high-pressure sales tactics by some bank employees. The government’s department of finance said OSFI’s review will be focusing on risk culture, the governance of sales practices, and how banks manage the potential reputational risk inherent in sales activities.
