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Canadian Payments Association By-law No. 6 — Compliance (SOR/2003-347)

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Canadian Payments Association By-law No. 6 — Compliance

SOR/2003-347

CANADIAN PAYMENTS ACT

Registration 2003-10-23

Canadian Payments Association By-law No. 6 — Compliance

P.C. 2003-1625  2003-10-23

The Board of Directors of the Canadian Payments Association, pursuant to subsection 18(1)Footnote a of the Canadian Payments ActFootnote b, hereby makes the annexed Canadian Payments Association By-law No. 6 — Compliance.

Ottawa, June 25, 2003

Whereas the annexed Canadian Payments Association By-law No. 6 — Compliance, made by the Board of Directors of the Canadian Payments Association, has been approved, in accordance with subsection 18(3) of the Canadian Payments ActFootnote b, by the members of the Association at a meeting of members;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 18(2) of the Canadian Payments ActFootnote b, hereby approves the annexed Canadian Payments Association By-law No. 6 — Compliance, made by the Board of Directors of the Canadian Payments Association.

Interpretation

Marginal note:Definitions

  •  (1) The following definitions apply in this By-law.

    By-law No. 3

    By-law No. 3 means Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System. (Règlement administratif n° 3)

    clearing member

    clearing member means a member that, on behalf of a non-member, exchanges payment items and effects clearing or makes entries into the Automated Clearing Settlement System within the meaning of By-law No. 3. (membre de compensation)

    committee

    committee means a committee established by the Board or a subcommittee of that committee. (comité)

    document

    document includes data stored by electronic means. (document)

    item in dispute

    item in dispute means an item in dispute as defined in Canadian Payments Association Rule A6. (effet contesté)

    non-member

    non-member means a local referred to in subparagraph 6(1)(a)(ii) of Bylaw No. 3. (non-membre)

    party

    party means a party to an investigation under section 10. (partie)

    secretary

    secretary means the secretary of the Association appointed by the Board. (secrétaire)

  • Marginal note:Contravention by member

    (2) For the purposes of this By-law, a member commits a contravention when the member fails to comply with a provision of the by-laws or rules that imposes a duty on the member.

  • Marginal note:Contravention by non-member

    (3) For the purposes of this By-law, a non-member commits a contravention when the non-member fails to comply with a provision of the by-laws or rules in respect of which a clearing member is responsible for ensuring compliance by the non-member under By-law No. 3.

  • SOR/2010-43, s. 70
  • SOR/2015-185, s. 26

Investigation Initiated by President

[SOR/2010-43, s. 71]

Marginal note:Initiated by President

  •  (1) The President may, at any time, if the President reasonably believes that a member or a non-member has committed a contravention, refer the matter to a committee that has relevant expertise for the purposes of an investigation.

  • Marginal note:Requirements

    (2) The President shall provide the following when referring the matter to a committee:

    • (a) the name of the member or non-member involved;

    • (b) a description of the alleged contravention and the relevant facts;

    • (c) any documentary evidence supporting the allegation; and

    • (d) any other relevant information or arguments.

  • Marginal note:Notice

    (3) Immediately after the President refers a matter to a committee, the President shall give written notice to the parties that the President has referred the matter to a committee for the purposes of an investigation. The notice shall contain a description of the alleged contravention.

  • SOR/2010-43, s. 72

Investigation Initiated by Complaint

Marginal note:Complaint

  •  (1) A member may file with the President a complaint alleging that another member or non-member has committed a contravention.

  • Marginal note:Requirements

    (2) A complaint shall be in writing and signed by an authorized representative of the complainant. The complaint shall contain the following:

    • (a) the name of the member or non-member involved;

    • (b) a description of the alleged contravention and the relevant facts;

    • (c) any documentary evidence supporting the complaint;

    • (d) if appropriate, the relief sought; and

    • (e) any other relevant information or arguments.

  • SOR/2010-43, s. 73

Marginal note:Item in dispute

  •  (1) Before filing a complaint that involves an item in dispute, the member shall give written notice to the member alleged to be in contravention or, in the case of a non-member alleged to be in contravention, to the non-member and its clearing member

    • (a) of the reason for the dispute, within 60 days after receipt of the returned item by the branch that originally received the item on negotiation or deposit; and

    • (b) of the member’s intention to file a complaint, at least 30 days before the day on which the complaint is filed.

  • Marginal note:Time limit

    (2) No complaint involving an item in dispute may be filed more than 180 days after the notice referred to in paragraph (1)(b) has been given.

Marginal note:Acknowledgement of receipt

 The President shall acknowledge, in writing, receipt of the complaint within 10 days after the day on which it is filed.

  • SOR/2010-43, s. 74

Marginal note:Powers of President

  •  (1) The President shall, if the President believes that the complaint is not frivolous, vexatious or made in bad faith,

    • (a) investigate the complaint and appoint one or more persons as necessary to assist in the investigation; or

    • (b) refer the complaint to a committee that has relevant expertise for the purposes of an investigation.

  • Marginal note:Notice

    (2) If the President decides to investigate a complaint or to refer a complaint to a committee, the President shall, within 30 days after the day on which the complaint is filed, give written notice to the parties of the President’s decision. The notice shall contain the details of the complaint.

  • Marginal note:Referral

    (3) If the President refers a complaint to a committee, the referral shall be made within 40 days after the day on which the complaint is filed.

  • SOR/2010-43, s. 75

Marginal note:Frivolous complaints

  •  (1) If the President decides that the complaint is frivolous, vexatious or made in bad faith, the President shall give written notice of that decision with reasons to the complainant within 30 days after the day on which the complaint is filed.

  • Marginal note:Appeal

    (2) A complainant may appeal the President’s decision to the Board within 30 days after the day on which the notice of the decision is given to the complainant.

  • Marginal note:Requirements

    (3) The appeal shall be made in writing, signed by an authorized representative of the appellant and given to the secretary.

  • Marginal note:Acknowledgement of receipt

    (4) The secretary shall acknowledge, in writing, receipt of the appeal within 10 days after the day on which it is received.

  • Marginal note:Distribution and scheduling

    (5) The secretary shall distribute the appeal to the members of the Board, and the hearing of the appeal shall be placed on the agenda for the next regular meeting of the Board.

  • Marginal note:Notice of the hearing

    (6) The secretary shall give written notice of the hearing of the appeal to the complainant and the President at least 14 days before the day of the hearing.

  • Marginal note:Conflict of interest

    (7) If a director has, or appears to have, a conflict of interest, that director shall withdraw from the appeal.

  • Marginal note:Submissions

    (8) The complainant and the President shall be given the opportunity to make oral and written submissions to the Board without introducing new evidence.

  • Marginal note:Decision of Board

    (9) The Board shall either confirm the President’s decision, if the Board believes the complaint is frivolous, vexatious or made in bad faith, or order that an investigation be conducted.

  • Marginal note:Requirements for decisions

    (10) The decision of the Board shall be in writing with reasons and the Board shall give the decision to the complainant and the President within 30 days after the day of the hearing.

  • Marginal note:Notice

    (11) If the Board orders that an investigation be held, the President shall, within 10 days after the day on which the order is received,

    • (a) refer the investigation to a committee that has relevant expertise; and

    • (b) give to the parties a written notice setting out the details of the complaint and that the complaint has been referred to a committee for the purposes of an investigation.

  • SOR/2010-43, s. 76
 
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