Former CIBC and TD Bank employees are testifying to the House of Commons finance committee about forging signatures on insurance documents today (Monday).
According to an ex-employee at CIBC, who spoke anonymously to CBC News, 85% of the sales staff signed up clients for insurance they didn’t ask for using the client’s initials - only to cancel the coverage a week later.
The sales staff, who forged insurance documents to earn commissions and make targets, would also add coverage for wealthy clients who they thought wouldn’t notice extra charges on their bill, the former bank employees said.
The federal government’s financial oversight board, the Office of the Superintendent of Financial Institutions Canada, wouldn’t comment on the matter but said it expected banks to comply with the law on their own volition.
“OSFI is aware of the allegations but does not comment on speculation. Therefore, we decline your request for an interview,” Annik Faucher, Communications Specialist at OFSI said.
“What I can tell you is that OSFI expects boards and senior management of federally regulated financial institutions (FRFIs) to be proactive, and to apply best practices related to corporate governance applicable to their institution. The senior management and board of directors of a financial institution are ultimately responsible for ensuring compliance with the applicable legislation and guidance.”
The House of Commons finance committee is expected to hear testimony from the whistle-blowers today, from the regulators and the Canadian Banking Association on Wednesday and the big five banks on Monday, June 12.
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