Payment Clearing and Settlement Act (S.C. 1996, c. 6, Sch.)

Statutory Instruments Act

Marginal note:Statutory Instruments Act

19 A designation under subsection 4(1), a directive issued under this Act, a declaration of non-viability made under subsection 11.06(1), a direction given under subsection 11.1(6) or an order made under subsection 11.09(1) or 11.11(1) is not a statutory instrument for the purposes of the Statutory Instruments Act.

Liability

Marginal note:No liability if in good faith

20 No action lies against Her Majesty, the Minister, the Bank, any officer, employee or director of the Bank or any person acting under the direction of the Governor of the Bank 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.

Judicial Review

Marginal note:No stay on judicial review

21 On an application for judicial review under the Federal Courts Act of any designation under subsection 4(1) or of any directive issued under this Act, no stay of the designation or directive shall be granted pending the final disposition of the application.

Participants

Marginal note:Participants responsible where no clearing house

• 22 (1) Where a clearing and settlement system does not have a clearing house located in Canada, the Canadian participants

  • (a) shall comply with the obligations imposed under this Act on a clearing house in respect of a clearing and settlement system, and

  • (b) have all the rights conferred by this Act on a clearing house in respect of a clearing and settlement system

  in the same manner and to the same extent as if the Canadian participants were the clearing house on which those obligations and rights are imposed or conferred and, for that purpose, any action that the Bank may take in respect of a clearing house may only be taken in respect of the Canadian participants.

• Marginal note:Participants responsible where clearing house fails to comply, etc.

  (2) Where a clearing house fails to comply with the obligations imposed on it under this Act in respect of its clearing and settlement system or otherwise contravenes this Act, 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 if the participants were the clearing house on which the obligations are imposed or that committed the contravention.

• (3) [Repealed, 2012, c. 5, s. 216]

Marginal note:Foreign participation

• 22.1 (1) An authorized foreign bank or foreign institution that is or wishes to be a participant in a designated clearing and settlement system shall provide the Governor of the Bank with any information regarding the application of foreign laws to the authorized foreign bank or foreign institution that the Governor considers necessary.

• Marginal note:Prohibition or conditions

  (2) The Governor of the Bank may prohibit the authorized foreign bank or foreign institution from being a participant in the designated clearing and settlement system or may require it to comply with any conditions with respect to its participation that the Governor considers necessary if the Governor is of the opinion, on the basis of the information provided under subsection (1) or of any other information that the Governor considers relevant, that its participation could pose a systemic risk or a payments system risk or could pose an unacceptable risk to the Bank in guaranteeing settlement of the authorized foreign bank’s or foreign institution’s obligations.

• Marginal note:Powers of Governor of Bank

  (3) The Governor’s powers under subsection (2) are in addition to all other powers conferred on the Governor and the Bank by this Act.

• Marginal note:Definitions

  (4) The definitions in this subsection apply in this section.

  authorized foreign bank

  authorized foreign bank means an authorized foreign bank within the meaning of section 2 of the Bank Act. (banque étrangère autorisée)

  designated clearing and settlement system

  designated clearing and settlement system[Repealed, 2014, c. 39, s. 373]

  foreign institution

  foreign institution means a foreign institution within the meaning of section 2 of the Bank Act. (institution étrangère)

Marginal note:Information

23 A participant is not required to provide information to the Bank under this Act concerning another participant of a clearing and settlement system if that information is not available to all the participants.

Regulations

Marginal note:Regulations

24 The Governor in Council may make regulations

• (a) providing for rules concerning conflicts of interest for the purpose of subsection 11.04(6);

• (b) respecting resolution plans and the requirement that the Bank develop and maintain them under subsection 11.05(1);

• (c) respecting what constitutes a service that is critical to the operation of the clearing and settlement system or of the clearing house for the purposes of paragraph 11.07(1)(f);

• (d) respecting what constitutes a limited clearing member for the purposes of subsection 11.11(4);

• (e) for the purpose of section 11.18, respecting what constitutes costs of the resolution and the recovery of those costs, including to specify the persons or entities from which costs may be recovered;

• (f) respecting the compensation for the purposes of sections 11.26 to 11.3, including to

  • (i) prescribe persons or entities referred to in subsection 11.26(1),

  • (ii) provide for the factors that the Bank shall or shall not consider in making a decision under subsection 11.26(1),

  • (iii) provide for the circumstances in which any shares or other right or interest received by another person or entity as a result of an order made under paragraph 11.09(1)(b) or retained by another person or entity may be taken into account in determining the amount of compensation to which a prescribed person or entity is entitled,

  • (iv) prescribe the circumstances in which an assessor must be appointed under section 11.28,

  • (v) provide for the factors that an assessor shall or shall not consider in making a decision, and

  • (vi) provide for procedural requirements;

• (g) prescribing collateral for the purpose of paragraph (e) of the definition financial collateral in subsection 13(2);

• (h) respecting what constitutes oversight information for the purposes of sections 18.1 and 18.2;

• (i) respecting the disclosure of oversight information for the purposes of section 18.1; and

• (j) respecting the circumstances in which oversight information may be used as evidence for the purposes of subsection 18.2(3).