Finance minister Jim Flaherty Wednesday introduced federal legislation to help ensure Canada continues to have a strong and secure financial system.

“Canada’s sound financial system is a model for countries around the world,” said Flaherty in a release.

“The Financial System Review Act will ensure our financial system continues to be secure for Canadians and a fundamental strength for our economy.”

The act includes measures to:

  • update legislation to promote financial stability and ensure Canada’s financial institutions continue to operate in a competitive, efficient and stable environment;
  • fine-tune the consumer protection framework, including enhancing the supervisory powers of the Financial Consumer Agency of Canada; and
  • improve efficiency by reducing the administrative burden on financial institutions and adding regulatory flexibility.

The government reviews legislation governing federally regulated financial institutions every five years. The most recent legislative review was completed in 2007.

The current review was launched on Sept. 20, 2010. Canadians were asked for their views on how to improve the financial system, in an open consultation process.

The sunset date for the financial institutions statutes is April 20, 2012.