On July 10, 2019, the Payment Clearing and Settlement
Regulations (the "Regulations")
were issued under the Payment Clearing and Settlement Act
(the "PCSA"). The Regulations are
intended to come into force, on a day to be fixed by order of the
Governor in Council, concurrently with earlier amendments made to
the PCSA pursuant to the
2018 federal budget (the "PCSA
Amendments").
The PCSA Amendments, along with the Regulations, set out
Canada's financial market infrastructure
("FMI") resolution framework. Following
the 2008 financial crisis, the G20 initiated a comprehensive
program of regulatory reforms to address the underlying causes of
the financial crisis. The creation of a FMI resolution framework
aligns with Canada's G20 commitment to establish effective
resolution regimes for systemically important institutions such as
banks, insurance companies and FMIs.
