Ian Roberge (York University) , Heather McKeen-Edwards (Bishop's University)
This paper contributes to the literature on organizational, policy, and regulatory change by focusing on the history of the Financial Consumer Agency of Canada (FCAC). The FCAC is an interesting case study because it always had a mandate composed of both regulatory and non-regulatory objectives. For the first decade and a half of its history, the FCAC prioritized consumer literacy for which its actions have been highly praised and downplayed its regulatory obligations on consumer protection for which it has often been found wanting. With the publication of its updated strategic plan in 2016, the FCAC reordered its priorities clearly establishing consumer protection as its primary objective relegating financial literacy to second place. How and why did the FCAC reorder its priorities within its mandate? What are the key factors that led to this pivot? Through a detailed analysis of the FCAC’s history, we argue that new leadership coupled with public scrutiny were essential in turning things around; most notably, the appointment of a new commissioner in 2015 served as a critical juncture that allowed the organization to reorder its priorities. Subsequently, through legislative and regulatory changes, the FCAC acquired new enforcement authority cementing its pivot to consumer protection. While findings on the importance of leadership for successful organizations are not new, this paper provides a concrete example of the effects of strong leadership in fostering change.