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ARTICLE · 22 NOVEMBER 2022

Prepare For Regulation: Bank Of Canada Introduces New Retail Payments Supervisory Framework

McMillan LLP
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The Retail Payments Activities Act was enacted in June 2021, creating a new regulatory regime for retail payment activities under the supervision of the Bank of Canada...

CanadaFinance and Banking
Shahen Mirakian
Shahen Mirakian
Darcy Ammerman
Darcy Ammerman
Pat Forgione
Pat Forgione
Robert C. Piasentin
Robert C. Piasentin
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Overview

The Retail Payments Activities Act (the "RPAA") was enacted in June 2021, creating a new regulatory regime for retail payment activities under the supervision of the Bank of Canada (the "BOC").1 The introduction of the RPAA is a significant milestone in the Canadian retail payments sector, which had previously been largely unregulated. The RPAA's introduction also represents unchartered territory for the BOC, which will be assuming the role of a regulator for an entire industry sector for the first time.

The BOC recently introduced a supervisory framework under the RPAA, which sets out how it will oversee payment service providers ("PSPs"), foster compliance, and monitor and assess trends and issues in the payment system.2 For more information about who qualifies as a PSP, please read our bulletin titled Who is Caught by Canada's New Retail Payment Systems Regulation?

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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