Retail Payment Activities Regulations (SOR/2023-229)

Marginal note:Contents

• 19 (1) For the purpose of paragraph 21(a) of the Act, the prescribed information consists of

  • (a) a description of any changes made to the payment service provider’s risk management and incident response framework during the reporting year and the payment service provider’s plans for the framework’s maintenance and implementation;

  • (b) a description of the objectives referred to in paragraph 5(1)(a) and the targets and indicators referred to in paragraph 5(1)(b);

  • (c) a description of the means by which the payment service provider carried out any assessments referred to in paragraph 5(3)(a) during the reporting year;

  • (d) a description of the manner in which the payment service provider carried out any assessments referred to in paragraph 5(4)(c) during the reporting year, including the criteria used;

  • (e) a description of the human and financial resources for implementing and maintaining the risk management and incident response framework that were available to the payment service provider during the reporting year;

  • (f) a description of roles and responsibilities allocated by the payment service provider in respect of the implementation and maintenance of their risk management and incident response framework during the reporting year;

  • (g) a description of the payment service provider’s operational risks in respect of the reporting year, their potential causes and the manner in which they were identified;

  • (h) a description of the manner in which the payment service provider classified any assets and business processes for the purpose of paragraph 5(1)(e) during the reporting year;

  • (i) a description of the systems, policies, procedures, processes, controls and other means referred to in paragraphs 5(1)(g) and (h) and subsection 5(5) that the payment service provider had in place during the reporting year;

  • (j) a description of the plans referred to in paragraphs 5(1)(i) and (j) and the manner in which those plans were maintained and implemented during the reporting year;

  • (k) a description of the means by which the payment service provider obtained the approvals required under subsection 5(6) during the reporting year;

  • (l) a description of the means by which the payment service provider ensured the availability of its risk management and incident response framework and of the precautions that it took to prevent the unauthorized deletion, destruction or amendment of the framework, as required by section 6, during the reporting year;

  • (m) a description of the information and training that the payment service provider ensured was provided under section 7 during the reporting year;

  • (n) a description of all reviews under section 8, testing under section 9 and independent reviews under section 10 that the payment service provider carried out or ensured were carried out during the reporting year, as well as a description of the payment service provider’s testing methodology referred to in subsection 9(1); and

  • (o) a description of any incidents that the payment service provider experienced during the reporting year.

• Marginal note:Accounts, insurance and guarantees

  (2) For the purpose of paragraph 21(b) of the Act, the prescribed information consists of

  • (a) information on any entity that has provided the payment service provider with an account referred to in subsection 20(1) of the Act, including the entity’s name and the name of the regulator responsible for supervising the entity with respect to its adherence to the standards referred to in section 13 of these Regulations;

  • (b) the name of any other payment service provider through which the payment service provider has obtained the use of an account referred to in subsection 20(1) of the Act;

  • (c) information on any entity that has provided the payment service provider with the insurance or guarantee referred to in paragraph 20(1)(c) of the Act, including the entity’s name and the name of the regulator responsible for supervising the entity with respect to its adherence to the standards referred to in section 14(1)(a) of these Regulations; and

  • (d) a description of the terms of any insurance or guarantee referred to in paragraph 20(1)(c) of the Act that the payment service provider holds.

• Marginal note:Holding of end-user funds

  (3) For the purpose of paragraph 21(c) of the Act, the prescribed information consists of

  • (a) a description of all of the means, among those set out in paragraphs 20(1)(a) to (c) of the Act, by which the payment service provider safeguards end-user funds and, if applicable, a description of the payment service provider’s trust arrangement with its end users;

  • (b) a description of the payment service provider’s safeguarding-of-funds framework referred to in section 15;

  • (c) a description of any instance referred to in subsection 16(1) that was identified during the reporting year, its root cause and any measures taken to prevent similar instances from recurring; and

  • (d) a description of any independent review that was conducted under section 17 during the reporting year, including the date on which it was conducted, its scope and the name that is set out in the record referred to in subsection 17(2).

• Marginal note:Other information

  (4) For the purpose of paragraph 21(d) of the Act, the prescribed information consists of

  • (a) in the case of a payment service provider that has a place of business in Canada,

    • (i) information establishing the payment service provider’s ubiquity and interconnectedness, including

      • (A) the maximum value, expressed in Canadian dollars, of end-user funds that the payment service provider held at any time during the reporting year for each of the following categories of end users:

        • (I) all end users, and

        • (II) end users in Canada,

      • (B) for each month of the reporting year,

        • (I) the average value, expressed in Canadian dollars, of the end-user funds that the payment service provider held at the end of each day for all end users,

        • (II) the average value, expressed in Canadian dollars, of the end-user funds that the payment service provider held at the end of each day for end users in Canada,

        • (III) the average value of the end-user funds, broken down by currency and expressed in that currency, that the payment service provider held at the end of each day for all end users,

        • (IV) the average value of the end-user funds, broken down by currency and expressed in that currency, that the payment service provider held at the end of each day for end users in Canada,

        • (V) the number of electronic funds transfers in relation to which the payment service provider performed a retail payment activity,

        • (VI) the number of electronic funds transfers in relation to which the payment service provider performed a retail payment activity for end users in Canada,

        • (VII) the number of electronic funds transfers, broken down by currency, in relation to which the payment service provider performed a retail payment activity,

        • (VIII) the number of electronic funds transfers, broken down by currency, in relation to which the payment service provider performed a retail payment activity for end users in Canada,

        • (IX) the total value, expressed in Canadian dollars, of all electronic funds transfers in relation to which the payment service provider performed a retail payment activity,

        • (X) the total value, expressed in Canadian dollars, of all electronic funds transfers in relation to which the payment service provider performed a retail payment activity for end users in Canada,

        • (XI) the total value, broken down by the currency in which the electronic funds transfers are made and expressed in that currency, of all electronic funds transfers in relation to which the payment service provider performed a retail payment activity, and

        • (XII) the total value, broken down by the currency in which the electronic funds transfers are made and expressed in that currency, of all electronic funds transfers in relation to which the payment service provider performed a retail payment activity for end users in Canada,

      • (C) the number of end users and end users in Canada for which the payment service provider performed a retail payment activity during the reporting year, and

      • (D) the number of other payment service providers for which the payment service provider performed a retail payment activity during the reporting year and, of those, the number that have a place of business in Canada, and

    • (ii) if the payment service provider holds end-user funds other than in accordance with subsection 20(1) of the Act, information establishing that those end-user funds are deposits accepted by the payment service provider that are insured or guaranteed under an Act of the province in which they are held;

  • (b) in the case of a payment service provider that does not have a place of business in Canada, information establishing the payment service provider’s ubiquity and interconnectedness in Canada, including the information referred to in

    • (i) subclauses (a)(i)(A)(II) and (B)(II), (IV), (VI), (VIII), (X) and (XII),

    • (ii) clause (a)(i)(C), in relation only to the payment service provider’s end users in Canada, and

    • (iii) clause (a)(i)(D), in relation only to other payment service providers that have a place of business in Canada;

  • (c) a description of any significant change referred to in subsection 22(1) of the Act that was made by the payment service provider during the reporting year and any retail payment activity that the payment service provider began or ceased to perform during that year;

  • (d) a description of any change to the payment service provider’s use of third-party service providers during the reporting year;

  • (e) a description of any change to the payment service provider’s use of agents or mandataries during the reporting year;

  • (f) a description of the payment service provider’s record-keeping practices during the reporting year; and

  • (g) a description of the payment service provider’s financial metrics for the reporting year, including its revenues, gross profits or losses, operating profits or losses, assets, liabilities and equity.

• Marginal note:Definition of reporting year

  (5) In this section, reporting year means the calendar year in respect of which an annual report is submitted.