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Canadian Payments Association By-law No. 2 — Finance (SOR/2016-283)

Regulations are current to 2021-03-23 and last amended on 2020-07-16. Previous Versions

Canadian Payments Association By-law No. 2 — Finance

SOR/2016-283

CANADIAN PAYMENTS ACT

Registration 2016-11-02

Canadian Payments Association By-law No. 2 — Finance

The Board of Directors of the Canadian Payments Association, pursuant to subsection 18(1)Footnote a of the Canadian Payments ActFootnote b, makes the annexed Canadian Payments Association By-law No. 2 — Finance.

Toronto, October 16, 2016

Eileen Mercier
Chairperson of the Board of Directors of the Canadian Payments Association

The Minister of Finance, pursuant to subsection 18(2)Footnote c of the Canadian Payments ActFootnote b, approves the annexed Canadian Payments Association By-law No. 2 — Finance, made by the Board of Directors of the Canadian Payments Association.

Ottawa, October 25, 2016

William Francis Morneau
Minister of Finance

Interpretation

Marginal note:Definitions

 The following definitions apply in this By-law.

amalgamated member

amalgamated member means a member formed by the amalgamation or merger of members or of members and non-members. (membre fusionné)

common services costs

common services costs means the costs incurred by the Association to provide services for the benefit of all members and participants, including management services — such as services in relation to human resources, accounting or finances — the development and revision of policies and rules and research services provided in collaboration with members and stakeholders. (coût des services communs)

common services dues

common services dues means the dues determined under subsection 5(1). (cotisation pour services communs)

direct operating costs

direct operating costs mean the costs incurred by the Association to operate a system. (frais d’exploitation directs)

participant

participant means a participant as defined in section 1 of the By-law No. 7 Respecting the Large Value Transfer System, a direct clearer or group clearer as defined in section 1 of the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System or a party to any other system. (participant)

service fees

service fees means the fees that are referred to in section 7. (droits de service)

system

system means the Automated Clearing Settlement System as defined in section 1 of the Canadian Payments Association By-law No. 3 — Payment Items and Automated Clearing Settlement System, the Large Value Transfer System as defined in section 1 of the By-law No. 7 Respecting the Large Value Transfer System or any other clearing and settlement system, payment system or system or arrangement established or operated by the Association. (système)

transaction fees

transaction fees means the fees that are referred to in subsection 6(1). (droits de transaction)

Budgets

Marginal note:Common services dues and transaction fees

  •  (1) The Board must calculate common services dues and transaction fees for a fiscal year on the basis of the Association’s operating budget and capital expenditures budget for the fiscal year that the Board prepares under subsection 22(1) of the Canadian Payments Act.

  • Marginal note:Contents of budgets

    (2) For the purpose of determining the common services dues and transaction fees payable for a fiscal year, the operating budget and capital expenditures budget for the fiscal year must specify common services costs and direct operating costs.

  • Marginal note:Reserves

    (3) The Board, in establishing the operating budget and capital expenditures budget for a fiscal year, may include amounts for reserves in the Association’s costs.

Marginal note:Changes to budgets

  •  (1) If the Board makes a significant amendment to the operating budget or capital expenditures budget for a fiscal year, it must adjust the common services dues and transaction fees payable for the fiscal year on the basis of that amendment.

  • Marginal note:Notice of adjustment

    (2) The Board must provide notice to members and participants at least 60 days before making an adjustment to common service dues and transaction fees under subsection (1).

New and Amalgamated Members

Marginal note:First year of membership

  •  (1) A new member, other than an amalgamated member or a member that is designated as a bridge institution under the Canada Deposit Insurance Corporation Act, must, in respect of its first year of membership, pay the full amount of the common services dues for the fiscal year in which it became a member.

  • Marginal note:Amalgamated member

    (2) An amalgamated member formed in a fiscal year must pay the common services dues, transaction fees and service fees for the fiscal year in an amount that is the sum of all the combined unpaid common services dues, transaction fees and service fees of the members and non-members that were amalgamated or merged.

  • Marginal note:Change of name

    (3) For greater certainty, a member that changes its name, other than as part of a merger or amalgamation, is not a new member.

  • SOR/2020-167, s. 8

Common Services Dues

Marginal note:Determination of amount

  •  (1) For each fiscal year, each member must pay dues in respect of the common services costs, in an amount determined in accordance with the formula

    A/B

    where

    A
    is the amount estimated to be the costs, for the Association, of providing the services that are of equal benefit to all of the members, as determined by the Board in the previous fiscal year; and
    B
    is the estimated number of members on the first day of the fiscal year, as determined by the Board in the previous fiscal year.
  • Marginal note:Timeline and notice

    (2) The Board must, no later than the day that is eight months before the first day of a fiscal year,

    • (a) determine the common services dues payable for the fiscal year under subsection (1); and

    • (b) inform members of the amount of those dues and explain how they were determined.

  • Marginal note:Surplus

    (3) If, after the end of a fiscal year, the total amount of common services dues collected is greater than the actual costs, for the Association, of providing the services that are of equal benefit to all of the members, the Board may allocate the surplus to a research and development reserve fund, subject to a maximum amount established for the fiscal year by the Board.

Fees for Services

Transaction Fees

Marginal note:Fees payable for each transaction

  •  (1) Each participant in a system must pay a fee in respect of each of its transactions in the system.

  • Marginal note:Determination of transaction fees

    (2) For each fiscal year, the Board must determine the transaction fees for each system on the basis of the estimated costs, for the Association, to operate that system and one of, or both of, the following:

    • (a) the estimated number of all transactions by all participants in that system;

    • (b) the estimated value of those transactions.

  • Marginal note:Considerations — determination of transaction fees

    (3) The Board, in deciding whether to select paragraph (2)(a) or (b), or both, must consider, in respect of a particular system, the nature of the system, the number of participants and the number and value of transactions by each participant.

  • Marginal note:Costs of operating system

    (4) The Board’s estimate of a system’s operating costs under subsection (2) must take into account, among other things,

    • (a) the direct operating costs;

    • (b) the portion of common services costs not included in the determination of the common services dues or in the determination of transactions fees for other systems;

    • (c) the recovery of capital investment in the system; and

    • (d) a fee-stabilizing charge to be held in reserve, subject to a maximum amount established for the fiscal year by the Board.

  • Marginal note:Fee-stabilizing charge

    (5) In paragraph (4)(d), fee-stabilizing charge means a charge intended to account for minor variations between the estimates referred to in subsection (2) of a system’s operating costs and of the number and value of transactions and the actual values of those items.

  • Marginal note:Timeline and notice

    (6) The Board must, no later than the day that is eight months before the first day of a fiscal year,

    • (a) determine the transaction fees payable for the fiscal year under subsection (2); and

    • (b) inform participants of the amount of those fees and explain how they were determined.

  • Marginal note:Adjustment of transaction fees

    (7) If a participant withdraws from participation in a system in a fiscal year, and the President determines that reserves or surplus for the fiscal year are not sufficient to make up for any resulting loss in transaction fees, the President must adjust the transaction fees payable for the fiscal year.

  • Marginal note:Notice of adjustment

    (8) The President must provide notice to participants at least 15 days before making an adjustment to transaction fees under subsection (7).

 
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