Management and Organizational Studies 2275A/B Chapter Notes - Chapter 25: Fiduciary, Cheque, Electronic Funds Transfer

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Traditionally, financial services industry has 4 sectors banks, trust companies, stockbrokerages, and insurance companies: each separately regulated, institutions were prohibited from conducting business beyond that sector. 1987 canadian legislation allowed banks to participate in other sectors in branches/through subsidiary firms: liberalized ownership rules for banks. Banks offer int"l banking services letters of credit, cross-border transfers, accounts in different currencies, etc : governed by voluntary rules treated by int"l bodies, eg: bank for int"l settlements, int"l chamber of commerce, etc . Banks under federal jurisdiction regulated through bank act. Terms and conditions of relationship between bank and customers found in agreements made by bank and customers: influenced by banking practice and common law rules, contract law source of guidance in interpreting and enforcing rights/obligations. Clear legal nature of relationship: customer"s $ on deposit w/ bank relationship is that of bank as debtor and customer as creditor.