AMF to impose Administrative Penalties for Failure to comply with New Complaint Handling Requirements
As of July 1, 2025, the AMF will have the power to impose administrative penalties of $1000 to $5000 for failures to comply with new complaint handling and dispute resolution requirements that apply to a wide range of providers of financial services, including Quebec registrants. Fortunately, investment and mutual dealer members of CIRO are exempt from these new requirements as long as CIRO’s complaint and dispute resolution rules are seen to be equivalent to the AMF’s.
The new requirements set out in 38 sections of a new regulation are quite detailed and will necessitate the adoption of new comprehensive policies and procedures if one is to avoid these penalties. For those subject to the new rules and operating both in Quebec and elsewhere in Canada, a decision will have to be made as to whether a single set of policies and procedures that complies with the AMF’s requirements be adopted or whether to have two sets, one for Quebec and another for the rest of Canada.
A few highlights:
One must properly assist a complainant during the process and provide timely update
A competent complaints officer must be appointed who has functional supervision of those handle the complaints process.
Disclosure documents relating to the complaint process and dispute resolution must be clear, readable, specific and not misleading.
If a complaint has repercussions on other clientele, then in addressing the complaint, one must address all affected clientele.
Absent exceptional circumstances, a “final response” must be provided within 60 days.
Even in exceptional circumstances, a “final response” must be provided within 90 days.
If an offer is made to resolve a complaint, the complainant must be given a reasonable amount of time to assess and respond to the offer. A reasonable amount of time must provide a sufficient opportunity to seek advice.
If a financial institution receives a complaint that involves more than one financial institution, it must explain the extent that complaint involves the other financial institution, inform the complainant of the right to make a complaint against such financial institution, and provide the complainant with any information it may have they would allow the complainant to communicate with them.
The AMF has promised to provide assistance on its website to help parties understand the new requirements, many of which are subjective, and provide a template complaint processing policy. As the template will likely be generic so it can be used by various types of financial institutions, we would suggest that if you operate in Quebec, or plan to, you get started developing your policies, procedures and any required forms, software, etc.
North Star Consultants offers a compliance manual update subscription service. Subscribers will receive updated compliance manuals that reflect regulatory changes automatically. Please contact us at info@northstarcompliance.com for details.