Prepaid Payment Products Regulations

Marginal note:Manner and content

• 4 (1) For the purposes of subsections 452(1.1) and 570(1.1) of the Bank Act, subsection 385.18(2) of the Cooperative Credit Associations Act, subsections 482(1.1) and 601(2) of the Insurance Companies Act and subsection 438(1.1) of the Trust and Loan Companies Act, the following information must, before a prepaid payment product is issued, be provided in any document that the issuing institution prepares for the issuance of the product, including on the product’s exterior packaging, if any, and be provided in writing to any person applying to the institution for the product:

  • (a) the name of the issuing institution;

  • (b) a toll-free telephone number that can be used to make inquiries about the product’s terms and conditions;

  • (c) the following restrictions on the use of the product, if imposed by the issuing institution:

    • (i) the fact that the product is not reloadable,

    • (ii) the fact that the product cannot be used to make withdrawals, and

    • (iii) any other restriction that could reasonably be expected to affect a person’s decision to acquire the product;

  • (d) all fees that may be imposed on the product holder by the issuing institution in respect of the product;

  • (e) if the funds that are loaded on the product are not insured by the Canada Deposit Insurance Corporation, a statement to that effect; and

  • (f) a statement indicating

    • (i) in the case of a promotional product, either that the product holder’s right to use the funds that are loaded on the product will not expire or the day on which that right will expire, as the case may be, or

    • (ii) in the case of any other prepaid payment product, that the product holder’s right to use the funds that are loaded on the product will not expire.

• Marginal note:Presentation of fee information

  (2) The information referred to in paragraph (1)(d) must be presented in an information box and appear prominently on any exterior packaging or other document referred to in subsection (1).