PART IIGeneral (continued)
Marginal note:Clearing house or participant
13.2 The Bank may enter into an agreement with a clearing house or a participant, or both, in respect of
(a) netting arrangements;
(b) risk-sharing and risk-control mechanisms;
(c) certainty of settlement and finality of payment;
(d) the nature of financial arrangements among participants;
(e) the operational systems and financial soundness of the clearing house;
(e.1) the exercise of the Bank’s powers and the performance of its duties and functions; and
(f) any other matters pertaining to systemic risk or payments system risk.
- 2014, c. 39, s. 369
- 2017, c. 33, s. 192
13.3 The Bank may enter into an agreement or arrangement with any government authority or regulatory body for the purpose of consulting, sharing information and coordinating their actions with respect to clearing and settlement systems.
- 2014, c. 39, s. 369
Marginal note:Information requests re systems or arrangements
14 (1) Where the Governor of the Bank has reasonable grounds to believe that a system or arrangement exists for the clearing and settlement of payment obligations or payment messages but the Bank requires further information in order to determine whether the system or arrangement is a clearing and settlement system, the Governor may, with the agreement of the Minister, request a person who is a party to the system or arrangement to provide the Bank with such information and documents regarding the system or arrangement as the Bank may require to make the determination.
Marginal note:Compliance with request required
(2) Every person to whom a request is directed under subsection (1) shall comply with the request.
Marginal note:Risk information
(3) Every clearing house shall provide the Bank with any information and documents that the Bank may require to enable the Bank to determine whether the clearing and settlement system poses a systemic risk or payments system risk, including
(a) the names of its participants;
(b) copies of its constating documents, by-laws, resolutions, agreements, rules, procedures and other documents governing its establishment and operation;
(c) the names of its directors, committee members and auditors;
(d) copies of its reports, statements or other documents that are required to be filed with any government authority or regulatory body; and
(e) copies of its financial statements.
- 1996, c. 6, s. 162 (Sch., s. 14)
- 2014, c. 39, s. 370
Marginal note:Compliance orders
(a) directing a clearing house or participant to comply with this Act, a directive issued under this Act or an agreement that it has entered into under section 13.2, if the clearing house or participant has failed to comply with this Act, the directive or the agreement, as the case may be;
(b) directing a person to comply with a request made under subsection 14(1), if the person has failed to comply with the request; or
(c) directing a person to comply with a prohibition or to respect a condition imposed under this Act, if the person has failed to comply with the prohibition or to respect the condition.
Marginal note:Powers of the court
(2) The court may make any order referred to in subsection (1) and may also make any further order that it considers appropriate.
- 1996, c. 6, s. 162 (Sch., s. 15)
- 2012, c. 5, s. 214
- 2014, c. 39, s. 371
Marginal note:Offence and punishment
16 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.
Marginal note:Governor or Bank may issue
17 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
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
(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
Designations and Directives
Marginal note:Not statutory instruments
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.
- 1996, c. 6, s. 162 (Sch., s. 20)
- 1999, c. 28, s. 134
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.
- 1996, c. 6, s. 162 (Sch., s. 21)
- 2002, c. 8, s. 182
Marginal note:Participants responsible where no clearing house
(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
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