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

Regulations are current to 2020-12-28 and last amended on 2015-08-01. Previous Versions

Compliance Panel

Marginal note:Duties

  •  (1) If a complaint has been referred to a committee, the committee shall, at its next regular meeting,

    • (a) establish a compliance panel of at least three representatives of members other than the complainant and the member alleged to be in contravention or, in the case of a non-member alleged to be in contravention, the non-member’s clearing member; and

    • (b) appoint the chair of the compliance panel.

  • Marginal note:Decision

    (2) A decision of the compliance panel is by majority vote.

Conduct of Investigations

Marginal note:Fairness and impartiality

  •  (1) An investigation shall be conducted in a fair and impartial manner.

  • Marginal note:Conflict of interest

    (2) If the President or a member of a compliance panel has, or appears to have, a conflict of interest, the President or the panel member, as the case may be, shall withdraw from the investigation and be replaced by a person designated by the Board.

  • SOR/2010-43, s. 77

Marginal note:Parties to investigation

  •  (1) A member alleged to be in contravention and, in the case of a non-member alleged to be in contravention, the non-member and its clearing member are parties to an investigation of the contravention.

  • Marginal note:Association

    (2) Subject to subsection (3), the Association is a party to every investigation.

  • Marginal note:Complainant

    (3) In the case of an investigation involving an item in dispute that has been initiated by the complaint of a member involved in the dispute, the complainant, rather than the Association, is a party to the investigation.

Marginal note:Representation by lawyer

 The parties to an investigation are entitled to be represented by a lawyer during the investigation.

Marginal note:Evidence

  •  (1) The President or compliance panel, as the case may be, shall assemble information and documents that are relevant to the investigation.

  • Marginal note:Written summary

    (2) The President or compliance panel, as the case may be, shall ensure that a written summary is prepared of any information that is assembled.

  • Marginal note:Record

    (3) The written summaries and documents are part of the record of the investigation.

  • Marginal note:Information and documents

    (4) The President or compliance panel, as the case may be, may request any member to provide information or documents that are relevant to the investigation and may make copies of them.

  • Marginal note:Duty

    (5) A member shall provide, or arrange to provide, the information or documents requested, unless the member satisfies the President or compliance panel, as the case may be, that there is a good reason as to why it should not provide or arrange to provide them.

  • Marginal note:Restriction on use

    (6) The President or compliance panel, as the case may be, shall use the information or documents that are assembled for the sole purpose of the investigation and for making a decision in respect of the alleged contravention.

  • SOR/2010-43, s. 78

Marginal note:Examination by the parties

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

Marginal note:Experts

  •  (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.

  • SOR/2010-43, s. 79

Marginal note:Hearing

  •  (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.

  • SOR/2010-43, s. 80

Sanctions and Expenses

Marginal note:Sanctions

  •  (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.

  • SOR/2010-43, s. 81

Marginal note:Expenses

 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).

  • SOR/2010-43, s. 82

Marginal note:Compliance

 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

  •  (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.

  • SOR/2010-43, s. 83

Marginal note:Contents

 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.

 
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