Overview On July 7, 2017, the Department of Finance of the Government of Canada (the Department) released a consultation paper (Paper) regarding a proposed new oversight framework for retail payments (New Framework). The Paper states that retail payment service providers (PSPs) other than regulated financial services providers such as banks and payment card networks are … Continue Reading
The Government tabled Budget 2017 on March 22. The financial services proposals are aimed at the following: Greater resiliency for the Canadian financial sector; A modernized deposit insurance framework that continues to protect the deposits of Canadians and promote financial stability; and Strengthened ability for Canada to combat money laundering and terrorist financing. Financial Sector … Continue Reading
In April 2016, Canadian news media reported that the Financial Transactions Reports Analysis Centre (FinTRAC) had levied a penalty of over $1 million against an unnamed Canadian bank for certain violations of its anti-money laundering requirements. Since then, FinTRAC has continued to face criticism from the public and the media for its decision to withhold … Continue Reading
Happy 2017! Financial services regulation continued to be busy in Canada in 2016. We have prepared this shortlist of pending changes, developments and consultations to watch as we start 2017. 1. New draft OSFI guideline: enterprise-wide model risk management OSFI released a new draft Guideline E-23 – Enterprise-Wide Model Risk Management on December 21, 2016. … Continue Reading
The proposed amendments to the Bank Act (Canada) (the Amendments) which would add a Financial Consumer Protection Framework (the Framework) (described in our recent post) will be withdrawn from Bill C-29. Bill C-29 passed third reading in the House of Commons and is currently before the Senate of Canada. News reports indicate that the Finance Minister, Bill Morneau, agreed to remove … Continue Reading
Bill C-29, Budget Implementation Act, 2016, No. 2, (Bill C-29) passed third reading in the House of Commons on December 6, 2016. Once passed by the Senate and brought into force, Bill C-29 will amend the Bank Act (Canada) (the Bank Act) to enact the long awaited Financial Consumer Protection Framework that was promised by … Continue Reading
The federal government has announced further restrictions that will make it more difficult for some borrowers to get mortgage loans and make it more costly for foreigners to speculate in the real estate market. Under current rules, a federally regulated mortgage lender may not make a loan on the security of a residential property if … Continue Reading
On September 16th, the Department of Finance announced the launch of a public consultation on the deposit insurance regime for banks, federally regulated trust and loan companies and certain provincially regulated institutions. There is no indication when the Government proposes to complete its review but comments are requested by November 30th. The Consultation Paper states … Continue Reading
The Minister of Finance issued a statement on September 14th on the status of each of Visa and MasterCard’s commitments to reduce the fees merchants are charged to accept credit cards (Interchange Fees). The statement acknowledges the independent audit findings of both Visa and MasterCard indicating that they have each met their commitments to reduce … Continue Reading
On August 26th, the federal Department of Finance launched a review of the legislation governing banks, insurance companies and trust companies under federal jurisdiction by issuing an initial consultation paper. The initial paper sets out some key facts relating to the sector and comments on trends that are currently impacting and are expected to continue … Continue Reading
On May 2, 2016, the Bank of Canada designated the Automated Clearing and Settlement System (ACSS) operated by the Canadian Payments Association as a system that has the potential to pose payment system risk (a Prominent Payment System). This designation means that the ACCS will now be overseen by the Bank of Canada in accordance … Continue Reading
A Liberal private member’s bill (Bill C-236) to amend the Payment Card Networks Act (Canada) (the PCN Act) went through first reading in the House of Commons on February 25th. The bill would amend the PCN Act to provide for a limit on “credit card acceptance fees”. The bill does not specify an actual rate … Continue Reading
The Government of Ontario has recently introduced proposed amendments to collection agency, consumer protection and payday loan legislation. Bill 156 – An Act to amend various Acts with respect to financial services (Bill 156) went through first reading in the Ontario legislature on December 9, 2015. The following proposed amendments are noteworthy: Collection and Debt … Continue Reading
The Government of Ontario announced on December 9, 2015 that it will introduce legislation to increase protections for consumers who use high-cost alternative financial services, such as payday loans, instalment loans, rent-to-own services and cheque-cashing services and to better protect those with debts in collection. The legislation has not yet been introduced. The announcement provides … Continue Reading
Each year, the Office of the Superintendent of Financial Institutions (OSFI) holds a seminar in Toronto to update both in house lawyers and outside counsel on recent activities undertaken by the Legislation and Approvals Division. In addition to administering applications for approvals under the Bank Act, Trust and Loan Companies Act and Insurance Companies Act, … Continue Reading
One of the unique and unusual features of the Canadian bank regulatory system is that Canada regulates financial entities based on what they are rather than what they do. As a result, you can have two entities carrying on the exact same line of business and one will be highly regulated and the other will … Continue Reading
Last October 19th, a new federal Liberal government was elected ending nine years of rule by the Conservative Party. With the election of a new government comes the appointment of a new Minister of Finance with responsibility for the federal financial services sector, including all banks and most trust companies and insurance companies in Canada. … Continue Reading
On June 19th, the standing Senate Committee on Banking, Trade and Commerce released a report on the use of digital currencies. The Report, entitled Digital Currency: You Can’t Flip this Coin follows 15 months of study during which the Committee heard from 55 witnesses. Last February, I was privileged to be one of the witnesses that … Continue Reading
As reported in our post on April 21st, the federal budget speech released last April either announced or provided updates on a number of important regulatory initiates relating to the federal financial services sector. Given the timing of the federal election this fall, it now appears likely that these initiatives will not be brought forward … Continue Reading
On April 21, 2015, the Government of Canada tabled the federal budget, Economic Action Plan 2015 (Budget 2015) in the House of Commons. In Budget 2015, the Government promised a number of regulatory changes that will be relevant to financial institutions. The changes include: A new consumer protection framework for banks and specific targeted consumer … Continue Reading
On April 13, the federal government made two important announcements relating to the regulation of payments and payments systems. First, an update was released to the Code of Conduct for the Credit and Debit Card Industry in Canada (Code of Conduct). In addition, the Government announced the launch of a consultation on the oversight of … Continue Reading
As of April 1, 2015, the Government of Ontario is appointing new inspectors to enforce requirements under the Consumer Protection Act, 2002 (CPA). According to a March 26th press release, the newly appointed inspectors will take a more preventative and targeted approach to enforcement. The power to appoint these new inspectors comes from amendments to … Continue Reading
On March 31st, the Office of the Superintendent of Financial Institutions (OSFI) released its plans and priorities for 2015 and 2016. While the release contained many familiar themes, some of the plans and priorities are interesting because they signal a new focus for OSFI or a recommitment that may not have been expected. Institutions and … Continue Reading
The Autorité des marchés financiers (AMF), Quebec’s financial services regulator, has taken another step towards regulating virtual currencies such as Bitcoin. On February 12th, the AMF announced that it had amended its Policy Statement to the Money-Services Businesses Act (the Act) to provide that operators of automated teller machines (ATM) that allow for the purchase … Continue Reading
