Canada’s biggest banks on the defensive over sales practice allegations

Porter’s comments came on the heels of similar remarks made by TD Bank’s CEO (TSX:TD) last week, who said that less than 100 of the complaints the bank received last year had compliance concerns.

Bharat Masrani said during his company’s annual meeting on March 30 that TD has brought in a professional services firm to help the bank review its businesses in light of the reports.

When asked by reporters if Scotiabank has any plans to launch a review or bring in external help, James O’Sullivan, head of Canadian banking, said the bank is constantly reviewing its businesses.

“We’re constantly assessing the culture,” O’Sullivan said, adding that the bank started doing so long before the fallout at Wells Fargo last year.

The U.S. bank publicly apologized and paid large penalties after it came to light that its employees had opened millions of unauthorized accounts and credit cards on behalf of clients.

Bank of Montreal (TSX:BMO) CEO Bill Downe also referenced Wells Fargo when asked by reporters about sales practice allegations.

Downe said he has a “high degree of confidence” in the bank’s employees and that the bank has “rigorous disciplines” in place to make sure that top-level executives are aware of what’s happening on the sales floor.

“We track incidents of customer or employee dissatisfaction and I’ve seen no movement in the numbers in the most recent period,” Downe told reporters after the bank concluded its annual shareholder meeting Tuesday.

The Financial Consumer Agency of Canada has launched its own review of business practices in the financial sector, in light of the CBC report. The Canadian Bankers Association, which represents the country’s major banks, has said its members will co-operate with the investigation.

Follow @alexposadzki on Twitter.

Alexandra Posadzki, The Canadian Press

by Canadian Press

Canada’s biggest banks on the defensive over sales practice allegations

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