News and Information

FCAC Commissioner publishes Clear Language and Presentation Principles and Guidelines for the Industry and information box examples following amendments to the Cost of Borrowing Regulations

Following the announcement of the proposed amendments to the plain language provision of the Cost of Borrowing Regulations, the FCAC Commissioner has established guidance to the Industry elaborating on core clear language principles. The intent of the Clear Language and Presentation Principles and Guidelines is to provide broad guidelines to federally regulated financial institutions (FRFIs) on how these principles should be implemented in developing disclosure documentation.

The guidelines will help clarify the basis for future interpretation by the Commissioner of the clear language requirements found in the financial institutions regulations. It is FCAC’s expectation that financial institutions will incorporate these principles into their policies and procedures for clear language documentation.

The government’s introduction of new Cost of Borrowing Regulations includes provisions for information disclosure boxes; in consultation with the Department of Finance Canada, FCAC has also developed examples of information boxes to further guide the industry.

The examples are designed to show the industry examples of how the information boxes could appear in disclosure documentation, and what content should be included. The examples are meant to be a reference for financial institutions as they develop their information boxes for their own lending documents. However, each FRFI is responsible for ensuring full compliance with the information requirements in the regulations.

Links to:

• Principles and guidelines document
• Information boxes