Fintechs Canada responded to the Bank of Canada’s supervisory policies and guidelines, which were out for consultation until May 21, 2024. In its response, the association identified parts of the Bank of Canada’s policies and guidance that required clarification and would be difficult to implement.
Payment service providers are required to register with the Bank of Canada later this year for supervision. The Bank of Canada will ensure that payment service providers safeguard end-user funds and are aware of and manage the risks associated with their business.
The Retail Payment Activities Act, which was passed in 2021, gives the Bank of Canada its authority, as well as outlines what is a payment service provider and the requirements payment service providers need to meet. Fintechs Canada and its members have long worked with the government and supported the passing of this legislation and the association regulations.
Since the passing of the governing Act and regulations, the Bank of Canada has been working to develop supervisory policies and guidance, which provide additional clarity to the market where the legislation and regulations do not. They released policies and guidance on the following subjects:
- End-user funds safeguarding
- Operational risk and incident response
- Notice of significant change or new activity
- Incident notification
The association identified parts of each of these policy and guidance documents that required clarification and would be challenging to implement.
For the association’s submission, click here.
