The Royal Bank of Canada has been ordered to pay an administrative monetary penalty of $4.25 million by the Financial Consumer Agency of Canada for a violation of the Bank Act, according to a summary of proceedings released by the federal agency on June 25, 2026.
The penalty stems from RBC's failure to provide required disclosure information to consumers regarding certain banking products and services. The FCAC determined that the bank did not comply with the Bank Act's provisions on cost of borrowing disclosure, which are designed to ensure consumers receive clear and timely information about fees and interest rates.
This is not the first time RBC has faced regulatory action over consumer disclosure issues. In 2024, the bank was fined $1.5 million by the FCAC for similar violations related to mortgage disclosure requirements. The latest penalty reflects the agency's ongoing enforcement efforts to hold financial institutions accountable for consumer protection rules.
RBC has stated it will pay the penalty and has taken steps to address the compliance gaps identified by the FCAC. The bank emphasized its commitment to meeting regulatory standards and improving customer communication.
The FCAC's action underscores the importance of transparent disclosure in the banking sector, particularly as consumers navigate complex financial products. The agency continues to monitor compliance across all federally regulated financial institutions.
