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

Marginal note:Examination by the parties

13 The parties may, for the sole purpose of the investigation, examine the record of the investigation and make copies of it.

Marginal note:Experts

• 14 (1) The President or compliance panel, as the case may be, may engage legal and other experts. Their reasonable fees and disbursements shall be included in the expenses of the investigation.

• Marginal note:Record

  (2) Any information or documents provided to the President or compliance panel, as the case may be, by their experts, other than a legal expert, forms part of the record of the investigation.

Marginal note:Hearing

• 15 (1) The President or compliance panel, as the case may be, shall convene a hearing unless the parties agree that a hearing is not necessary.

• Marginal note:Date of hearing

  (2) The President or compliance panel, as the case may be, shall select a date for a hearing in consultation with the parties.

• Marginal note:Notice

  (3) The President or compliance panel, as the case may be, shall give to the parties written notice of the day of a hearing at least 20 days before that day.

• Marginal note:Rights of parties

  (4) In a hearing, the parties have the right to be heard, to produce and cross-examine witnesses, to receive copies of any documentary evidence produced against them, to produce evidence and to make oral and written submissions.

Sanctions and Expenses

Marginal note:Sanctions

• 16 (1) If, after an investigation, the President or compliance panel, as the case may be, decides that a member is in contravention or, in the case of a non-member alleged to be in contravention, that the non-member is in contravention and that its clearing member failed to ensure compliance by the non-member, the President or compliance panel, as the case may be, may take one or more of the following actions:

  • (a) reprimand the member;

  • (b) order the member to do anything that a member is required to do, or to stop doing anything that a member is not allowed to do, under the by-laws or rules;

  • (c) order the member to make restitution to any member that has suffered a loss as a result of the contravention;

  • (d) suspend one or more of the rights of the member, specifying the day on which the rights are automatically reinstated or the conditions that must be met before the rights can be reinstated on application under section 25;

  • (e) order the member to comply with certain conditions when the member exercises one or more of its rights;

  • (f) order the member to pay a penalty not to exceed $250,000 for each contravention.

• Marginal note:Recommendation to remove

  (2) In addition to the sanctions referred to in subsection (1), the President or compliance panel, as the case may be, may notify the Board or any committee on which an officer or employee of the member serves that the member has committed a contravention and recommend that the officer or employee be removed from the Board or committee.

Marginal note:Expenses

17 The President or compliance panel, as the case may be, may determine the amount of the expenses of the investigation and order one or both of the following persons to pay all or a part of those expenses:

• (a) the member who is the subject of the investigation;

• (b) a complainant who is a party to the investigation under subsection 10(3).

Marginal note:Compliance

18 Every member who is subject to an order under subsection 16(1) or section 17 shall comply with the order.

Compliance Report

Marginal note:Investigation by President

• 19 (1) When an investigation is conducted by the President, the President shall prepare a compliance report.

• Marginal note:Investigation by compliance panel

  (2) When an investigation is conducted by a compliance panel, the panel shall prepare a compliance report.

Marginal note:Contents

20 A compliance report shall contain the following information:

• (a) the facts and analysis with respect to the investigation;

• (b) the conclusions of the investigation, including a determination of whether a contravention has occurred;

• (c) any sanctions that are being imposed; and

• (d) who is required to pay all or a part of the expenses, if any, of the investigation.

Marginal note:Time limit

21 The President or compliance panel, as the case may be, shall give the compliance report to the parties within 30 days after the day on which the investigation has concluded.

Enforcement and Collection

Marginal note:Time limit

• 22 (1) Any amount to be paid by a member under subsection 16(1) or section 17 is due and payable within 30 days after the day on which the compliance report is given to the member.

• Marginal note:Interest

  (2) If a member does not pay the amount within the 30-day period, the member shall pay interest calculated in accordance with subsection (3).

• Marginal note:Calculations

  (3) The interest is equal to an amount calculated in accordance with the formula

  A × B × C

  where

  A

  is the amount to be paid under subsection (1);

  B

  is the weighted average of the minimum interest rate that the Bank of Canada is prepared to charge in respect of an advance, as made public in accordance with the Bank of Canada Act, converted to a daily rate that is based on 365 days, for the period beginning on the day on which the compliance report is given to the member and ending on the day on which the amount referred to in the description of A is paid (in this subsection referred to as the interest period); and

  C

  is the number of days in the interest period.

• Marginal note:Amount owing added to membership dues

  (4) Any amount to be paid by the member that is not paid within the 30-day period, together with the interest calculated under subsection (3), shall be added to the following year’s annual dues of that member.

Marginal note:General revenue

23 The amount of any penalty or interest paid or expenses recovered under this By-law accrues to the general revenue of the Association.

Marginal note:Register

• 24 (1) Every compliance report and every decision or order of the Board referred to in subsection 7(9) shall be filed with the Association and recorded in a register maintained by the secretary.

• Marginal note:Consultation

  (2) The register may be consulted by any member or non-member on request to the secretary.

Reinstatement of Rights

Marginal note:Reinstatement

25 The President or compliance panel, as the case may be, shall reinstate the rights of a member that have been suspended under subparagraph 16(1)(d) if the member applies for reinstatement and the conditions for reinstatement referred to in that paragraph have been met.

Notices and Documents

Marginal note:Method of giving notices

• 26 (1) Any notice to be given under this by-law is sufficiently given if it is given by personal delivery, transmitted by facsimile or electronic mail, or sent by registered mail (except during periods of actual or threatened interruption of normal postal service because of labour disturbance) addressed to the intended recipient at the recipient’s address as recorded on the membership list or in the records of the Association.

• Marginal note:Delivered notice

  (2) A notice given by personal delivery is considered to have been given on the day it is delivered.

• Marginal note:Mailed notice

  (3) A notice sent by registered mail is considered to have been given on the fifth day after it was mailed.

• Marginal note:Notices sent by other means

  (4) A notice transmitted by facsimile or electronic mail is considered to have been given on the day it is transmitted.

• Marginal note:Change of address

  (5) The secretary may change or cause to be changed in the records of the Association the address of any member, director, officer, auditor or member of a committee of the Board in accordance with any reliable information.

• Marginal note:Notice of change of address

  (6) Members shall inform the secretary of any change in their address.

Marginal note:Association

27 Any document given to the Association because the Association is a party to an investigation shall be delivered or given to the secretary.

Exclusion of Liability

Marginal note:Exclusion of liability

28 Neither the Association, nor a director, the President or a member of a compliance panel is liable for any loss or damage suffered by a member for anything done or omitted to be done honestly and in good faith in the administration or discharge of any powers or duties that under this By-law are intended or authorized to be executed or performed.

Marginal note:Indemnity

29 The Association shall indemnify a member of a compliance panel or former member of a compliance panel and his or her heirs and legal representatives, against all costs, charges and expenses — including an amount paid to settle an action or to satisfy a judgment — reasonably incurred by him or her in respect of any civil, criminal or administrative action or proceeding to which he or she was made a party by reason of being or having been a member of a compliance panel, if

• (a) the member or former member acted honestly and in good faith; and

• (b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the member or former member had reasonable grounds for believing that his or her conduct was lawful.

Consequential Amendment

30 [Amendment]

Repeal

31 [Repeal]

Coming into Force

Marginal note:Coming into force

32 This By-law comes into force on the day on which it is registered.