Canadian CUs Can't Use the Words Bank, Banker, and Banking

Canada's Office of the Superintendent of Financial Institutions (OSFI) on June 30th issued an advisory that restricts the use of the words “bank”, “banker” and “banking”.

OSFI has observed increased use of the words “bank”, “banker” and “banking” by non-bank financial service providers.

The restrictions apply to all non-bank financial service providers, including both federally regulated trust and loan companies and provincially regulated institutions. They also apply to unregulated financial service providers.

While the Advisory went into effect immediately, OFSI will give non-banks time to comply with the Advisory and established timelines for websites, print materials, and physical signage to come into compliance.

The Advisory also provides an exception to these restrictions, where the use of the words is not in relation to a financial services business.

The Canadian Credit Union Association criticized the Advisory and called on the federal government to reverse the OFSI's advisory.

Read the press release.