Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news for professionals in the financial industry, banking, credit unions, insurance, payment processing, fintech, credit card issuing, asset management, venture capital, private equity, and crypto-currencies. Every Monday, we break down the most important updates in this space in under five minutes.

Want to track other GR news in adjacent industries? Don’t miss this week’s updates in ICT & Cybersecurity.

Dates: 2025-07-27 to 2025-08-02

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News

Canadian Federal GR News

FCAC Orders Banks to Address Gaps in Consumer Complaint Handling Processes

On July 31, the Financial Consumer Agency of Canada (FCAC) released its Supervisory Highlight on the complaint-handling procedures of small and medium-sized banks. The review identified that institutions did not consistently treat all expressions of customer dissatisfaction as complaints, failed in multiple cases to provide timely resolution within the mandated 56-day window, and submitted incomplete records to regulators. FCAC has informed each bank in the review of required corrective actions, and will monitor compliance under the Financial Consumer Protection Framework. The findings arrive two years after new complaint-handling rules were implemented to improve effectiveness and accessibility for consumers. All federally regulated banks have been prompted to reassess their own procedures against compliance benchmarks. FCAC noted that its latest supervisory attention targeted smaller and mid-sized banks due to higher implementation risks. Corrective actions are expected to address recordkeeping, definitions, and response timelines.

Sources: Announcements: www.canada.ca

Proposed Amalgamations of Credit Unions Pursuant to the Bank Act

The latest Canada Gazette, Part I, disclosed intent from Innovation Federal Credit Union and ABCU Credit Union Ltd. to submit a joint application to the Minister of Finance for letters patent to continue as a federal credit union, followed by amalgamation as "Innovation Federal Credit Union" headquartered in Swift Current, Saskatchewan. The proposed effective date is April 1, 2026, subject to normal regulatory review and potential public objections until September 16, 2025. In a separate notice, Prospera Credit Union and Sunshine Coast Credit Union announced their intention to become federal credit unions, with the purpose of amalgamating with Coast Capital Savings Federal Credit Union. The merged entity would operate under Coast Capital’s name from Surrey, BC. These moves follow procedures under subsections 34(1.1), 25(2), and 228(2)(a) of the Bank Act. Amalgamation dates are pending approval, and outcomes depend on both federal review and member votes, with possible variations if all parties do not complete continuances.

Sources: Gazette, Part I: www.gazette.gc.ca, Gazette, Part I: www.gazette.gc.ca

Aviva Insurance Companies Seek Federal Approval to Amalgamate

A proposed amalgamation under the Insurance Companies Act was reported in Canada Gazette, Part I, for Aviva Insurance Company of Canada, Traders General Insurance Company, Elite Insurance Company, and Pilot Insurance Company. The firms have applied for letters patent to merge as a single corporate entity under the Aviva banner. Their head office would remain in Toronto, with a proposed effective date of January 1, 2026. This amalgamation is pending full regulatory review by the Minister of Finance, and the notice explicitly states that issuance of letters patent is not assured until the application process is complete. Legal representation for the transaction is provided by Stikeman Elliott LLP.

Sources: Gazette, Part I: www.gazette.gc.ca

Minister of Finance Hosts Roundtable with Chief Economists on Canada's Economic Outlook

On July 28, Finance Minister François-Philippe Champagne convened chief economists from leading Canadian institutions in Toronto to discuss the country's economic trajectory ahead of Budget 2025. The closed-door roundtable spanned topics including the government's response to tariffs, ongoing global economic uncertainty, trade negotiations with the United States, and measures to drive private investment. The Minister reiterated the government's current priorities relating to fiscal discipline, cost containment, and stimulating investment. Participants examined opportunities for job creation, housing, and diversification of trade. This session forms part of a broader pattern of pre-budget consultations intended to shape federal fiscal policy in the coming year, and the agenda signals focus on both resilience against external shocks and leveraging Canadian sectoral strengths.

Sources: Announcements: www.canada.ca

US Federal GR News

White House Working Group Releases Proposals for Digital Asset Market Regulation and Stablecoin Framework

The President’s Working Group on Digital Asset Markets published a set of recommendations on July 30, targeting a comprehensive modernization of U.S. oversight for digital financial technology. The group has called for Congressional action to provide the Commodity Futures Trading Commission (CFTC) with jurisdiction over non-security digital asset spot markets and for the SEC and CFTC to clarify rules for digital asset trading. The GENIUS Act—signed on July 18—has established the first federal stablecoin framework. The report also recommends new anti-money laundering standards for decentralized finance and proposes to ban Central Bank Digital Currencies. Taxation guidance would create discrete treatment for digital asset transactions, including mining and staking, and incorporates new consumer protection provisions. The administration highlights the objective of reinforcing the U.S. dollar in the global digital economy while encouraging blockchain adoption within regulated banking.

Sources: White House Announcements: www.whitehouse.gov

FDIC Introduces Proposed Rule to Index Banking Regulatory Thresholds to Inflation Across Multiple Regulations

The Federal Deposit Insurance Corporation (FDIC) published a proposed rule on July 28 that would update and periodically index numerous regulatory thresholds, including those in Parts 303, 335, 340, 347, 363, and 380 of its regulations. Asset and transaction materiality thresholds, such as Part 363’s audit and control requirements ($500 million and $1 billion), would be significantly increased—including a doubling to $1 billion and $5 billion, respectively—using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as a benchmark. The proposed schedule would adjust thresholds biennially or in any year cumulative inflation exceeds 8%. The FDIC’s stated aims are to mitigate regulatory creep due to inflation and reduce compliance burdens for institutions unintentionally drawn into more complex rules over time. Public comments are due by September 26, 2025.

Sources: U.S. Federal Announcements: www.federalregister.gov

SEC Requests Comments on Proposed Rule Change by LCH SA to Enhance Its Risk Governance Framework

On August 1, the Securities and Exchange Commission (SEC) released a notice regarding proposed amendments by LCH SA to its Risk Governance Framework and related risk policies. The changes involve updated standards for collateral eligibility, margining, credit risk assessment, operational risk controls, and third-party risk management, as well as revised governance roles and procedures. The underlying intent is to comply with Section 17A of the Securities Exchange Act and reinforce LCH SA’s operational resilience. Interested parties have until August 22, 2025, to submit comments. The SEC’s review is pertinent for stakeholders engaged in clearing, settlement, and risk oversight across derivatives and cash markets.

Sources: U.S. Federal Announcements: www.federalregister.gov

SEC Seeks Industry Input on Regulation S-ID Identity Theft Program Compliance Requirements

The Securities and Exchange Commission announced on August 1 a request for public comment on its proposed renewal of the information collection under Regulation S-ID, requiring registered entities to develop and maintain identity theft prevention programs. The rule applies to approximately 10,055 SEC-regulated entities, including investment advisers and broker-dealers, and includes provision for regular program updates, staff training, and mandatory checks of address changes. The estimated annual compliance cost across these entities totals $90.47 million in expenses and 111,173 hours, according to the SEC's data. Comments may be submitted to the Office of Management and Budget by September 2, 2025.

Sources: U.S. Federal Announcements: www.federalregister.gov

SEC Notice on LCH SA’s Risk Management Policy Amendments for Derivatives Clearing

The Treasury Department published notices on July 30 seeking comments on Financial Crimes Enforcement Network (FinCEN) regulatory renewals. These include recordkeeping requirements for correspondent accounts with foreign shell banks, requirements for casinos to maintain additional records, reporting obligations for transactions with foreign financial agencies, and obligations for accounts with Iranian- or IRGC-linked foreign banks. Affected financial institutions include thousands of banks, casinos, and intermediaries. FinCEN estimates a total annual burden of 73,632 hours for correspondent account certification and 118,863 hours for casino recordkeeping. Stakeholder feedback on burden estimates and possible improvements is due by August 29, 2025.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Saskatchewan Issues Investor Alerts About Unregistered Crypto and Investment Platforms

The Financial and Consumer Affairs Authority of Saskatchewan issued multiple investor alerts concerning impersonation scams and unregistered platforms, including XBTDirect, IPO Capital, and SM Trading Centre. Authorities warned residents to verify registrations before investing and noted recent scams using public figure images to mislead consumers.

Sources: Provincial Announcement: www.saskatchewan.ca, Provincial Announcement: www.saskatchewan.ca, Provincial Announcement: www.saskatchewan.ca

New Brunswick Launches Review of Right to Information and Protection of Privacy Act

The Government of New Brunswick has initiated a review of its Right to Information and Protection of Privacy Act, with public input invited until September 12, 2025. The review seeks to update legislation to address changes in digital access and evolving expectations.

Sources: Provincial Announcement: www2.gnb.ca

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