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

Act current to 2019-08-28 and last amended on 2019-06-23. Previous Versions

PART IIGeneral (continued)

Guidelines

Marginal note:Governor or Bank may issue

 The Governor of the Bank or the Bank may issue guidelines in respect of any matter relating to the administration or enforcement of this Act.

Disclosure of Information

Marginal note:Information confidential

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

  • Marginal note:Disclosure permitted

    (2) Nothing in subsection (1) prevents the Bank from disclosing any information, if the Bank is satisfied that the information will be treated as confidential by the authority, body or person to which it is disclosed,

    • (a) to any government authority or regulatory body charged with the regulation of

      • (i) financial institutions, as defined in section 2 of the Trust and Loan Companies Act, for purposes related to that regulation, or

      • (ii) entities that provide clearing or settlement services in connection with securities transactions or eligible financial contracts, for purposes related to that regulation; and

    • (b) to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Chief Executive Officer of the Canada Deposit Insurance Corporation or any other officer of that Corporation authorized in writing by the Chief Executive Officer.

  • Marginal note:Disclosure permitted

    (3) Nothing in subsection (1) prevents the Bank from disclosing any information regarding a clearing and settlement system that the Bank has designated under subsection 4(1) to any government authority or regulatory body charged with the regulation of systems or arrangements for the clearing or settlement of payment obligations or payment messages, for purposes related to that regulation, if the Bank is satisfied that the information will be treated as confidential by the authority or body to which it is disclosed.

  • Marginal note:Disclosure outside Canada

    (4) Before the Bank discloses information to a government authority or regulatory body outside Canada, the Bank shall enter into an arrangement or agreement with the authority or body regarding the terms of the disclosure.

  • 1996, c. 6, s. 162 (Sch., s. 18)
  • 2012, c. 5, s. 215
  • 2014, c. 39, s. 372
  • 2016, c. 7, s. 178

Marginal note:No disclosure

 Subject to the regulations, a clearing house shall not disclose oversight information.

  • 2018, c. 12, s. 241

Marginal note:Evidentiary privilege

  •  (1) Oversight information shall not be used as evidence in any civil proceedings and is privileged for that purpose.

  • Marginal note:No testimony or production

    (2) No person shall by an order of any court, tribunal or other body be required in any civil proceedings to give oral testimony or to produce any document relating to any oversight information.

  • Marginal note:Exceptions to subsection (1)

    (3) Despite subsection (1),

    • (a) the Minister, the Governor of the Bank, the Bank or the Attorney General of Canada may, subject to the regulations, use oversight information as evidence in any proceedings; and

    • (b) a clearing house may, subject to the regulations, use oversight information as evidence in any proceedings in relation to the administration or enforcement of this Act, the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act or the Winding-up and Restructuring Act that are commenced by the Minister, the Bank or the Attorney General of Canada.

  • Marginal note:Exceptions to subsections (1) and (2)

    (4) Despite subsections (1) and (2), a court, tribunal or other body may, by order, require the Minister, the Governor of the Bank, the Bank or a clearing house to give oral testimony or to produce any document relating to any oversight information in any civil proceedings in relation to the administration or enforcement of this Act that are commenced by the Minister, the Governor of the Bank, the Bank or the Attorney General of Canada.

  • Marginal note:No waiver

    (5) The disclosure of any oversight information, other than under subsection (3) or (4), does not constitute a waiver of the privilege referred to in subsection (1).

  • 2018, c. 12, s. 241

Statutory Instruments Act

Marginal note:Statutory Instruments Act

 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.

  • 1996, c. 6, s. 162 (Sch., s. 19)
  • 2018, c. 12, s. 236

Liability

Marginal note:No liability if in good faith

 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.

  • 1996, c. 6, s. 162 (Sch., s. 20)
  • 1999, c. 28, s. 134

Judicial Review

Marginal note:No stay on judicial review

 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.

  • 1996, c. 6, s. 162 (Sch., s. 21)
  • 2002, c. 8, s. 182

Participants

Marginal note:Participants responsible where no clearing house

  •  (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]

  • 1996, c. 6, s. 162 (Sch., s. 22)
  • 2012, c. 5, s. 216

Marginal note:Foreign participation

  •  (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)

  • 1999, c. 28, s. 135
  • 2014, c. 39, s. 373
  • 2017, c. 33, s. 193
 
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