Retail Payment Activities Act (S.C. 2021, c. 23, s. 177)

Marginal note:Framework

• The following provision is not in force.

  17 (1) For the purposes of identifying and mitigating operational risks and responding to incidents, a payment service provider that performs retail payment activities must, in accordance with the regulations, establish, implement and maintain a risk management and incident response framework that meets prescribed requirements.

• The following provision is not in force.

  Marginal note:Assessment by Bank

  (2) The Bank or a person designated by the Bank may assess the payment service provider’s risk management and incident response framework or any portion of it and the Bank may provide the payment service provider with a list of corrective measures that the Bank considers appropriate.

• The following provision is not in force.

  Marginal note:Duty to assist

  (3) The payment service provider must give all assistance that is reasonably required to enable the Bank or the designated person to carry out an assessment referred to in subsection (2) and must provide any documents or information and access to any data that are specified by the Bank or the designated person.

Marginal note:Requirement to notify

• The following provision is not in force.

  18 (1) If a payment service provider that performs retail payment activities becomes aware of an incident that has a material impact on any of the following individuals or entities, the payment service provider must, without delay, notify that individual or entity and the Bank of the incident:

  • The following provision is not in force.

    (a) an end user;

  • The following provision is not in force.

    (b) a payment service provider that performs retail payment activities, whether or not this Act applies to the payment service provider; and

  • The following provision is not in force.

    (c) a clearing house of a clearing and settlement system, as those expressions are defined in section 2 of the Payment Clearing and Settlement Act, that is designated under subsection 4(1) of that Act.

• The following provision is not in force.

  Marginal note:Form, manner and content of notice

  (2) The notice must be given in the prescribed form and manner and contain the prescribed information.

Marginal note:Follow-up notices

• The following provision is not in force.

  19 (1) The Bank may, by order, direct a payment service provider that has given a notice in accordance with section 18 to provide any follow-up notice that the Bank considers relevant.

• The following provision is not in force.

  Marginal note:Content of order

  (2) The order must specify

  • The following provision is not in force.

    (a) the individuals or entities to be notified;

  • The following provision is not in force.

    (b) when the follow-up notice is to be given and its form and manner; and

  • The following provision is not in force.

    (c) the information to be contained in the notice.

• The following provision is not in force.

  Marginal note:Compliance with order

  (3) The payment service provider must comply with the order.

Marginal note:Accounts

• The following provision is not in force.

  20 (1) If a payment service provider performs a retail payment activity that is the holding of end-user funds until they are withdrawn by the end user or transferred to another individual or entity, the payment service provider must

  • The following provision is not in force.

    (a) hold the end-user funds in trust in a trust account that is not used for any other purpose;

  • The following provision is not in force.

    (b) hold the end-user funds in a prescribed account or in a prescribed manner and take any prescribed measures in relation to the funds, the account or the manner; or

  • The following provision is not in force.

    (c) hold the end-user funds in an account that is not used for any other purpose and hold insurance or a guarantee in respect of the funds that is in an amount equal to or greater than the amount held in the account.

• The following provision is not in force.

  Marginal note:Exception — provincial insurance or guarantee

  (2) Subsection (1) does not apply to a payment service provider in respect of end-user funds it holds in a province if the payment service provider accepts deposits that are insured or guaranteed under an Act of that province and those end-user funds are deposits that are guaranteed or insured under that Act.

• The following provision is not in force.

  Marginal note:No set-off or compensation

  (3) No right of set-off or compensation may be asserted by an individual or entity that maintains an account that is referred to in paragraph (1)(a), (b) or (c) in respect of the funds held in that account.

Marginal note:Annual report

21 A payment service provider that performs retail payment activities must, at the prescribed time and in the prescribed form and manner, submit an annual report to the Bank that includes

• The following provision is not in force.

  (a) the prescribed information respecting the payment service provider’s risk management and incident response framework;

• The following provision is not in force.

  (b) the prescribed information in relation to any account referred to in subsection 20(1) and the insurance or guarantee referred to in paragraph 20(1)(c);

• The following provision is not in force.

  (c) any other prescribed information in relation to the holding of end-user funds for the purposes of subsection 20(1) and any regulations made for the purposes of that subsection; and

• The following provision is not in force.

  (d) any other prescribed information.

Marginal note:Notice — significant change or new activity

• The following provision is not in force.

  22 (1) A payment service provider must notify the Bank before the payment service provider makes a significant change in the way it performs a retail payment activity or before it performs a new retail payment activity. The notice must

  • The following provision is not in force.

    (a) be given within the prescribed period;

  • The following provision is not in force.

    (b) be in the prescribed form and manner; and

  • The following provision is not in force.

    (c) include the prescribed information.

• The following provision is not in force.

  Marginal note:Significant change

  (2) For the purposes of subsection (1), a change is significant if it could reasonably be expected to have a material impact on operational risks or the manner in which end-user funds are safeguarded.

Marginal note:Registration required

23 A payment service provider must be registered with the Bank before it performs any retail payment activities.

Marginal note:New application — acquisition of control

• The following provision is not in force.

  24 (1) If an individual or entity plans to acquire control of a registered payment service provider, the registered payment service provider must, before the acquisition, submit a new application for registration that takes the planned acquisition into account and be so registered.

• The following provision is not in force.

  Marginal note:New application — other change

  (2) If a registered payment service provider plans to make a prescribed change, the registered payment service provider must, before the change takes effect, submit a new application for registration that takes the planned change into account and be so registered.

• The following provision is not in force.

  Marginal note:Non-application

  (3) Subsection (1) does not apply in the case of a planned acquisition that would, on the day on which it is planned to take effect, result in this Act no longer applying to the registered payment service provider by virtue of section 9 or 10.