• Marginal note:Exemption from Canada Corporations Act

  (2) The Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, does not apply to the Association.

Marginal note:Regulations by Governor in Council

• 35. (1) The Governor in Council may make regulations

  • (a) establishing the number of members of committees of the Board and the number of members of the Board that shall be designated by the Board from each class of members established under subsection 9(3);

  • (b) respecting the election of directors of the Association, including regulations

    • (i) respecting the eligibility of persons to be elected as directors,

    • (ii) determining the number of directors, if any, to be elected in respect of each class established under subsection 9(3), and

    • (iii) prescribing the circumstances when two or more of the classes established under subsection 9(3) are to be deemed to be one class and determining the number of directors to be elected in respect of that deemed class;

  • (c) determining the number of votes that a member is entitled to cast for the election of directors;

  • (d) establishing requirements for membership in the Association to be met by persons or classes of persons;

  • (e) respecting the conditions that a money market mutual fund must satisfy; and

  • (f) generally, for carrying out the purposes and provisions of this Part.

• Marginal note:Deeming

  (2) A director elected in respect of classes that are deemed to be one class under regulations made under subparagraph (1)(b)(iii) is deemed to be elected by and to represent the members of each of the affected classes for the purposes of subsection 9(4) and sections 11 to 13.

PART 2DESIGNATED PAYMENT SYSTEMS

Interpretation

Marginal note:Definitions

36. The definitions in this section apply in this Part.

“designated payment system”

« système de paiement désigné »

“designated payment system” means a payment system designated under subsection 37(1).

“participant”

« participant »

“participant” means a party to an arrangement in respect of a payment system.

“payment system”

« système de paiement »

“payment system” means a system or arrangement for the exchange of messages effecting, ordering, enabling or facilitating the making of payments or transfers of value.

“rule”

« règle »

“rule” means a rule, by whatever name called, that governs a designated payment system. It includes an amendment to or a repeal of a rule.

Application

Marginal note:Application

36.1 This Part does not apply to the Association.

Designation

Marginal note:Designation by Minister

• 37. (1) The Minister may, if he or she considers that it is in the public interest to do so, designate a payment system that in the opinion of the Minister

  • (a) is national or substantially national in its scope; or

  • (b) plays a major role in supporting transactions in Canadian financial markets or the Canadian economy.

• Marginal note:Factors

  (2) The following factors shall be considered in a determination of whether it is in the public interest to designate a payment system:

  • (a) the level of financial safety provided by the payment system to the participants and users;

  • (b) the efficiency and competitiveness of payment systems in Canada; and

  • (c) the best interests of the financial system in Canada.

• Marginal note:Consultation

  (3) Before a payment system is designated, the Minister shall consult the manager and the participants of the payment system and may consult interested parties, with respect to the effect of the designation.

• Marginal note:Notice

  (4) The Minister shall notify the manager and the participants of a designated payment system in any manner that the Minister considers appropriate.

• Marginal note:Designation not statutory instrument

  (5) A designation is not a statutory instrument for the purposes of the Statutory Instruments Act. However, it must be published in the Canada Gazette.

Rules

Marginal note:Copies of rules to be sent to Minister

• 38. (1) A copy of every rule governing a designated payment system shall be sent by the manager of the designated payment system or, if there is none, by the participants to the Minister

  • (a) in the case of a rule made before the designation of the payment system, within 30 days after the designation; and

  • (b) in the case of a rule made after the designation, within 10 days after it is made.

• Marginal note:Effective date of rule

  (2) A rule, other than a rule referred to in paragraph (1)(a), does not come into force before the thirtieth day after a copy of it is sent to the Minister under subsection (1), but the Minister may declare the rule to be in force at any time before that period expires.

• Marginal note:Extension of time

  (3) If the Minister is of the opinion that an extension of the period mentioned in subsection (2) is necessary to permit adequate review of a rule, the Minister may within 10 days after its receipt, on written notice to the sender of the rule, extend that period by up to 30 days.

• Marginal note:Disallowance

  (4) The Minister may disallow the whole or a part of a rule.

• Marginal note:Exemption

  (5) The Minister may exempt a designated payment system from the application of subsection (2).

Guidelines and Directives

Marginal note:Minister may issue guidelines

• 39. (1) The Minister may issue guidelines in respect of any matter relating to the administration or enforcement of this Part.

• Marginal note:Guidelines public

  (2) Guidelines shall be made available to the public and the Minister shall give notice of them in any manner that the Minister considers appropriate.

Marginal note:Minister may issue directive

• 40. (1) The Minister may issue a written directive to the manager or a participant of a designated payment system in respect of

  • (a) the conditions a person must meet to become a participant in the designated payment system;

  • (b) the operation of the designated payment system;

  • (c) the interaction of the designated payment system with other payment systems; or

  • (d) the relationship of the designated payment system with users.

• Marginal note:Consultation

  (2) Before giving a directive, the Minister shall consult the person to whom it is to be given, and may consult any interested party, with respect to the content and effect of the directive.

• Marginal note:Content

  (3) The Minister may specify in a directive that a manager of a designated payment system or a participant shall, within such time as the Minister considers necessary,

  • (a) cease or refrain from engaging in an act or course of conduct;

  • (b) perform such acts as in the opinion of the Minister are necessary in the public interest; or

  • (c) make, amend or repeal a rule.

• Marginal note:Notification of implementation

  (4) As soon as is practicable after implementing a directive and completing any actions required to be taken in connection with it, the person to whom it is given shall notify the Minister that the directive has been implemented and the action completed.

• Marginal note:Directive not statutory instrument

  (5) A directive is not a statutory instrument for the purposes of the Statutory Instruments Act. However, it must be published in the Canada Gazette.

• Marginal note:Duty to comply

  (6) A directive is binding on the person to whom it is given.

Information Requirements

Marginal note:Information requests

• 41. (1) If the Minister requires information in order to determine whether a payment system should be designated under subsection 37(1), the Minister may request that the manager of the payment system or a participant provide the Minister with any information and documents regarding the system that the Minister may require.

• Marginal note:Ongoing information requests

  (2) Every manager of a designated payment system or, if there is none, the participants shall, in respect of the designated payment system, provide the Minister with such information and documents as the Minister may from time to time request.

• Marginal note:Compliance with request required

  (3) Every person to whom a request is directed shall comply with the request.

Participants

Marginal note:Responsibility if foreign system manager

• 42. (1) If a designated payment system does not have a Canadian manager, the Canadian participants

  • (a) shall comply with the obligations imposed under this Part on a manager of a designated payment system, and

  • (b) have all the rights conferred by this Part on a manager of a designated payment system

  in the same manner and to the same extent as if the Canadian participants were the manager of the designated payment system on which those obligations and rights are imposed or conferred and, for that purpose, any action that the Minister may take in respect of the manager of the designated payment system may only be taken in respect of its Canadian participants.

• Marginal note:Failure to comply of system manager

  (2) If a manager of a designated payment system fails to comply with the obligations imposed on it under this Part in respect of the designated payment system or otherwise contravenes this Part, the participants jointly and severally shall comply with those obligations or are liable for the contravention in the same manner and to the same extent as the manager.

• Marginal note:Interpretation

  (3) In subsection (1), a manager of a designated payment system or a participant is “Canadian” if the manager or participant is incorporated or formed under the laws of Canada or a province.

PART 3GENERAL

Marginal note:Information is confidential

• 43. (1) Information and documents obtained under this Act are confidential and shall be treated accordingly.

• Marginal note:Disclosure permitted

  (2) Nothing in subsection (1) prevents the Minister from disclosing any information or documents to

  • (a) any government agency or regulatory body charged with the regulation of financial institutions, as defined in section 2 of the Bank Act, for purposes related to that regulation,

  • (b) the Bank of Canada or any officer of the Bank authorized in writing by the Governor of the Bank, and

  • (c) the Chairperson of the Canada Deposit Insurance Corporation or any officer of that Corporation authorized in writing by the Chairperson,

  if the Minister is satisfied that the information or documents will be treated as confidential by the agency, body or person to whom they are disclosed.

Marginal note:No liability if in good faith

44. No action lies against Her Majesty, the Minister, any officer or employee of the Department of Finance or any person acting under the direction of the Minister for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed.

Marginal note:Compliance orders

45. If a person fails to comply with a provision of this Act or a directive issued to it by the Minister under subsection 19.3(1) or 40(1) in connection with any matter under this Act, or a person to whom a request referred to in section 41 is directed fails to comply with the request, the Minister may apply to a superior court for an order directing the person to comply with the provision, directive or request and, on the application, the court may so order and make any further order it thinks fit.

Marginal note:No stay on judicial review

46. On an application for judicial review under the Federal Court Act of a designation under subsection 37(1) or of a directive issued under subsection 19.3(1) or 40(1), no stay of the designation or directive shall be granted pending the final disposition of the application.

Marginal note:Offence and punishment

47. Every person who, without reasonable cause, contravenes any provision of this Act is guilty of an offence and

• (a) in the case of a natural person, liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding twelve months, or to both; or

• (b) in the case of any other entity, liable on summary conviction to a fine not exceeding $500,000.