Budget Implementation Act, 2024, No. 1 (S.C. 2024, c. 17)
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Assented to 2024-06-20
PART 4Various Measures (continued)
DIVISION 16Consumer-Driven Banking Framework (continued)
2001, c. 9 Related Amendments to the Financial Consumer Agency of Canada Act
199 Section 2 of the Financial Consumer Agency of Canada Act is amended by adding the following in alphabetical order:
- participating entity
participating entity means a participating entity under the Consumer-Driven Banking Act. (entité participante)
- Senior Deputy Commissioner
Senior Deputy Commissioner means the Senior Deputy Commissioner for Consumer-Driven Banking appointed under subsection 7.2(1). (commissaire adjoint principal)
- technical standards body
technical standards body means the technical standards body designated under subsection 8(1) of the Consumer-Driven Banking Act. (organisme de normalisation technique)
200 Section 2.1 of the Act is replaced by the following:
Marginal note:Supervision and protection
2.1 The purpose of this Act is to ensure that financial institutions, the external complaints body, payment card network operators, participating entities and the technical standards body are supervised by an agency of the Government of Canada so as to contribute to the protection of consumers of financial products and services and the public and to the safety and security of consumer-driven banking, including by strengthening the financial literacy of Canadians.
201 Section 3 of the Act is amended by adding the following after subsection (3):
Marginal note:Objects — consumer-driven banking
(4) The objects of the Agency in relation to consumer-driven banking are to
(a) supervise the participating entities, the external complaints body and the technical standards body to determine whether they are in compliance with
(i) the provisions of the Consumer-Driven Banking Act that are applicable to them, and
(ii) any terms and conditions or undertakings with respect to consumer-driven banking that the Minister imposes or requires, as the case may be, under an Act listed in Schedule 1 and the directions that the Minister imposes under this Act;
(b) monitor and evaluate trends and emerging issues that may have an impact on consumers of consumer-driven banking, including the trends and issues in respect of products, services and market developments, and make information on those trends and issues public;
(c) foster — in co-operation with any department, agency or agent corporation of the Government of Canada or of a province, financial institutions and consumer and other organizations — participation in consumer-driven banking; and
(d) foster an understanding of consumer-driven banking and related issues among consumers.
202 Subsection 5.1(1) of the Act is replaced by the following:
Marginal note:Minister’s direction
5.1 (1) The Minister may give a written direction to the Agency if the Minister is of the opinion that it can strengthen consumer protection and the public’s confidence in that protection, foster safe and secure consumer-driven banking or enhance the financial literacy of Canadians.
203 The Act is amended by adding the following after section 7.1:
Senior Deputy Commissioner
Marginal note:Appointment
7.2 (1) The Commissioner must, with the Minister’s concurrence, appoint an officer to be called the Senior Deputy Commissioner for Consumer-Driven Banking who is to act under the instructions of the Commissioner and who is responsible for consumer-driven banking matters.
Marginal note:Absence or incapacity
(2) In the event of the absence or incapacity of the Senior Deputy Commissioner, or if the office of Senior Deputy Commissioner is vacant, the Commissioner may appoint a qualified person to exercise the powers and perform the duties and functions of the Senior Deputy Commissioner for a term of 90 days that may not be extended without the Minister’s approval.
Marginal note:Role
7.3 (1) Subject to the supervision referred to in paragraph 4(2)(a.1) of the Office of the Superintendent of Financial Institutions Act, the Senior Deputy Commissioner is responsible for the supervision of consumer-driven banking.
Marginal note:Powers, duties and functions
(2) The Senior Deputy Commissioner may exercise the powers, and must perform the duties and functions, that relate to consumer-driven banking and that are conferred on them under this Act or any other Act of Parliament.
Marginal note:Personal information
(3) The Senior Deputy Commissioner may collect any personal information that the Senior Deputy Commissioner considers necessary in furtherance of the objects described in subsection 3(4).
Marginal note:Publication of information
7.4 The Senior Deputy Commissioner must publish, in the prescribed time and manner, the prescribed information respecting consumer-driven banking.
204 The Act is amended by adding the following after section 9:
Marginal note:Exercise by personnel — Senior Deputy Commissioner
9.1 Except as otherwise provided by the Senior Deputy Commissioner and subject to any terms and conditions that they may specify, a person who is an employee of the Agency — other than a Deputy Commissioner — may exercise any of the powers and perform any of the duties and functions of the Senior Deputy Commissioner under this Act if the person is appointed to serve in the Agency in a capacity appropriate to the exercise of the power or performance of the duty or function.
205 Section 10 of the Act is replaced by the following:
Marginal note:Employees
10 The employees that are necessary to enable the Commissioner and the Senior Deputy Commissioner to perform their duties are to be appointed in accordance with the Public Service Employment Act.
206 Subsection 11(1) of the Act is replaced by the following:
Marginal note:Responsibility for human resources management
11 (1) In respect of persons appointed under sections 7.2, 8 and 10, the Commissioner is authorized to exercise the powers and perform the functions of the Treasury Board that relate to human resources management within the meaning of paragraphs 7(1)(b) and (e) and section 11.1 of the Financial Administration Act, and those of deputy heads under subsection 12(2) of that Act, as that subsection reads without regard to any terms and conditions that the Governor in Council may direct, including the determination of terms and conditions of employment and the responsibility for employer and employee relations.
207 The Act is amended by adding the following after section 12:
Advisory and Other Committees
Marginal note:Advisory and other committees
12.1 (1) The Commissioner may, on the advice of the Senior Deputy Commissioner, establish advisory and other committees to advise or assist the Senior Deputy Commissioner on matters relating to consumer-driven banking and provide for their membership, duties, functions and operation.
Marginal note:Remuneration and expenses
(2) Members of a committee may be paid for their services the remuneration and expenses that the Commissioner may determine, in accordance with any applicable Treasury Board directives.
208 Subsection 13(3) of the Act is replaced by the following:
Marginal note:Payment for activity
(3) If the Agency carries on any activity in furtherance of an object described in paragraph 3(2)(d) or (e) or subsection 3(4) on the Minister’s recommendation, the Minister may on terms and conditions approved by the Treasury Board, in any fiscal year, make a payment out of the Consolidated Revenue Fund to the Agency for the purposes of the activity.
209 (1) Subsection 14(1) of the Act is replaced by the following:
Marginal note:Ownership
14 (1) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2) or a Deputy Commissioner must not hold, directly or indirectly, any interest or right in any shares of any financial institution, any bank holding company, any insurance holding company, the external complaints body or any other body corporate, however created, carrying on any business in Canada that is substantially similar to any business carried on by any financial institution or the external complaints body.
(2) The portion of subsection 14(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Prohibitions — federal credit union
(2) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2) or a Deputy Commissioner must not
210 Section 14.1 of the Act is replaced by the following:
Marginal note:Ownership — payment card network operators
14.1 The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2) or a Deputy Commissioner must not hold, directly or indirectly, any interest or right in any shares of a payment card network operator.
Marginal note:Ownership — participating entities, etc.
15 The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2) or a Deputy Commissioner must not hold, directly or indirectly, any interest or right in any shares of a participating entity or the technical standards body.
211 (1) Subsections 16(1) and (1.1) of the Act are replaced by the following:
Marginal note:No grant or gratuity to be made
16 (1) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2), a Deputy Commissioner and any person appointed under section 10 must not accept or receive, directly or indirectly, any grant or gratuity from a financial institution, a bank holding company, an insurance holding company or the external complaints body or from a director, officer or employee of any of them and a financial institution, a bank holding company, an insurance holding company and the external complaints body, and any director, officer or employee of any of them, must not make or give any such grant or gratuity.
Marginal note:No grant or gratuity — payment card network operators
(1.1) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2), a Deputy Commissioner and any person appointed under section 10 must not accept or receive, directly or indirectly, any grant or gratuity from a payment card network operator or any of its directors, officers or employees, and a payment card network operator or any of its directors, officers or employees must not make or give any such grant or gratuity.
Marginal note:No grant or gratuity — participating entities, etc.
(1.2) The Commissioner, a person appointed under subsection 4(4), the Senior Deputy Commissioner, a person appointed under subsection 7.2(2), a Deputy Commissioner and any person appointed under section 10 must not accept or receive, directly or indirectly, any grant or gratuity from a participating entity or the technical standards body, or any of their directors, officers or employees, and a participating entity or the technical standards body, or any of their directors, officers or employees, must not make or give any such grant or gratuity.
(2) The portion of subsection 16(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Offence and punishment
(2) Every person, financial institution, bank holding company, insurance holding company, payment card network operator, participating entity or technical standards body that contravenes subsection (1), (1.1) or (1.2) is guilty of an offence and liable
212 Section 17 of the Act is amended by adding the following after subsection (4):
Marginal note:Confidential information — participating entities, etc.
(5) Subject to subsection (6) and except as otherwise provided in this Act, information regarding the business or affairs of a participating entity, the external complaints body or the technical standards body, or regarding persons dealing with a participating entity, the external complaints body or the technical standards body, that is obtained by the Senior Deputy Commissioner or by a person acting under the direction of the Senior Deputy Commissioner, in the course of the exercise or performance of powers, duties and functions under section 7.3, and any information prepared from that information, is confidential and must be treated accordingly.
Marginal note:Disclosure permitted
(6) If the Senior Deputy Commissioner is satisfied that the information will be treated as confidential by the agency, body or person to whom it is disclosed, subsection (5) does not prevent the Senior Deputy Commissioner from disclosing it
(a) to any government agency or body that regulates or supervises financial institutions or participating entities, for purposes related to that regulation or supervision;
(b) to any other agency or body that regulates or supervises financial institutions or participating entities, for purposes related to that regulation or supervision;
(c) to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for purposes related to the regulation or supervision of participating entities; and
(d) to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance, for the purposes of policy analysis related to the regulation of financial institutions or participating entities.
213 (1) Subsection 18(1) of the Act is replaced by the following:
Marginal note:Commissioner to ascertain expenses
18 (1) The Commissioner must, before December 31 in each year, ascertain the total amount of expenses incurred during the immediately preceding fiscal year for or in connection with the administration of this Act and the consumer provisions — excluding the expenses incurred in connection with the objects described in subsections 3(3) and (4) — and the amounts of any prescribed categories of those expenses in relation to any prescribed group of financial institutions and the external complaints body.
(2) Section 18 of the Act is amended by adding the following after subsection (5.5):
Marginal note:Commissioner to ascertain expenses — participating entities
(5.6) The Commissioner must, before December 31 in each year, ascertain the total amount of expenses incurred during the immediately preceding fiscal year in connection with the objects described in subsection 3(4).
Marginal note:Amount conclusive
(5.7) The amount ascertained under subsection (5.6) is final and conclusive for the purposes of this section.
Marginal note:Assessment
(5.8) As soon as possible after ascertaining the amount under subsection (5.6), the Commissioner must assess a portion of the total amount of expenses against each participating entity to the extent and in the manner that may be prescribed.
Marginal note:Interim assessment
(5.9) The Commissioner may, during each fiscal year, prepare an interim assessment against any participating entity.
Marginal note:Assessment is binding
(5.91) Every assessment and interim assessment is final and conclusive and binding on the participating entity against which it is made.
214 (1) Subsection 19(1) of the Act is amended by adding the following after paragraph (a.2):
(a.3) designating, as a violation that may be proceeded with under sections 20 to 31, the contravention of a specified provision of the Consumer-Driven Banking Act or its regulations, or the non-compliance with terms and conditions, undertakings or directions referred to in subparagraph 3(4)(a)(ii);
(2) Paragraph 19(1)(c.1) of the Act is replaced by the following:
(c.1) prescribing the circumstances in which the Commissioner and Senior Deputy Commissioner must not make public, under subsection 31(1), the name of the person who committed the violation; and
(3) Subsection 19(2) of the Act is replaced by the following:
Marginal note:Maximum penalties
(2) The maximum penalty for a violation is $1,000,000 in the case of a violation that is committed by a natural person, and $10,000,000 in the case of a violation that is committed by a financial institution, a payment card network operator or a participating entity.
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