2019 Consumer Protection Conference Consumer Affairs

Who we are “Protect consumers and enhance public confidence in the financial and consumer marketplaces through the provision of regulatory and educational services” - FCNB mandate

Agenda Legislation Administered by Consumer Affairs Mandate/Purpose Licensing Process Opportunity to be Heard Compliance Reviews Enforcement Financial and Consumer Services Tribunal Contact Us

Legislation Administered by Consumer Affairs Auctioneers Collection & Debt Settlement Services Commissioners for Taking Affidavits Consumer Product Warranty and Liability Cost of Credit Disclosure and Payday Loans Credit Reporting Services Direct Sellers Franchises Gift Cards Mortgage Brokers Pre-arranged Funeral Services Real Estate Agents

Mandate/Purpose Consumer Affairs Division provides day-to-day compliance and administration of a wide range of consumer legislation Activities include: investigating consumer complaints, advising consumers of their rights and responsibilities, promoting consumer education and information, issuing licenses for the regulation of businesses under various consumer protection legislation, and hearing matters that may result in terms & conditions, or the refusal, suspension or cancellation of a licence.

Licensing/Registration Auctioneers Collection and Debt Settlement Agencies and Collectors Commissioner of Oaths Appointees Cost of Credit Disclosure Registrants Direct Sellers Vendors and Salespersons Mortgage Brokerages, Administrators, Brokers and Associates Payday Lenders Pre-arranged Funeral Service Providers and Managers Real Estate Agents, Managers and Salespersons

Licencing Application Process Applicants should ensure that all applications are completed fully and that all relevant details are included prior to submitting to FCNB. Missing or incomplete details will delay the issuance of the licence. FCNB encourages existing licensees to submit renewal applications at least 2-4 weeks in advance of the expiry date to allow sufficient time for review

FCNB Online Portal Currently on the Portal: Mortgage Brokers Direct Sellers Payday lenders We are currently transitioning other licence types from a paper based licence application to the Portal Coming soon: Real Estate Licence Applications Regular communication with industry will occur as each licence application moves to the Portal

Searchable Licence Database A searchable database exists on the FCNB website for: Mortgage Brokers Payday Lenders Coming soon: Direct Sellers Real Estate *Note that there are also searchable databases for Insurance and Securities As we move towards a fully online licensing system, FCNB will have a searchable online database for consumers and industry to view a list of licensees for most licence types

Licensing Suitability These three fundamental criteria are assessed based on the information provided by the applicant through the licensing process or during the period of the licence: Proficiency Integrity Solvency

Opportunity to be Heard Applicants, licensees and registrants, have the right to an opportunity to be heard before Regulators can make certain decisions. These include: Refusal Suspension Cancellation Terms and conditions

Opportunity to be Heard Procedure Notice to Applicant or Licence holder Opportunity to respond (in person or in writing) Regulator provides written decision which includes: The nature of the decision to be made, with appropriate reference to statutory provisions A summary of the information considered A summary of the Opportunity to be Heard process and the participation of the affected person therein Decisions are posted on the FCNB website

Compliance Reviews A compliance review is an examination of books, records and documents in relation to the business activities of a licence holder or former licence holder. It is conducted by compliance staff appointed by the Commission with the objective of obtaining sufficient evidence: To support compliance with legislative requirements, and To confirm no material mishandling of trust funds for licence holders or former licence holders who have/had a trust account. Compliance Review Types: Opening educational visit Routine compliance review (scheduled and unscheduled) Closing review

Compliance Review Authority A compliance officer may: Enter the premises of any licence holder during normal business hours, Require a licence holder, or officer or employee of a licence holder, to produce for inspection, examination, auditing or copying any books, records or documents relating to business activities of licence holder, Inspect, examine, audit or copy the books, records or documents provided, and Question a licence holder, or officer or employee of licence holder in relation to business activities of the licence holder.

Enforcement Enforcement deals with offences and penalties within FCNB’s legislative mandate Power to pursue quasi-criminal charges Individuals: fines up to $500,000 and/or 1 year imprisonment Non-individuals: fines up to $1,000,000 Administrative Penalties Individuals: penalties up to $100,000 Non-individuals: penalties up to $500,000 Restriction/suspension/cancellation of licence Ban from industry

Financial and Consumer Services Tribunal The Financial and Consumer Services Tribunal (Tribunal) is an independent adjudicative body The Tribunal exercises powers imposed on it by New Brunswick Financial and Consumer Services Legislation, which includes holding hearings, appeals and the revocation or variation of decisions. The Tribunal has jurisdiction to decide all questions of fact or law arising in the course of a hearing, review or appeal Decisions and orders issued by the Tribunal are a matter of public record

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