In light of new consumer protection legislation that will take effect this fall, partner Brigitte Goulard spoke with The Logic about the changes this legislation will present—and what it will mean for Canadian businesses and consumers.
On November 1, non-bank businesses that make money from online payment services, or companies that handle payments on behalf of Canadians, will need to register with the Bank of Canada as part of the new Retail Payment Activities Regulations.
The regulations are designed to protect consumers against risks associated with online payment processing, such as hacks or company failures. “If you had money in a wallet with a payment service provider, and the provider went down, that was it, your money was gone,” Brigitte said.
“There was no security on that money.”
While certain activities performed by payment service providers (such as fees and lending) had already been covered by existing legislation, the government's move to give the Bank of Canada oversight of these companies is new, Brigitte explained.
Under the legislation, affected businesses will need to meet certain standards for safeguarding users' funds, mitigating risks, and reporting any incidents. The Bank of Canada is still evaluating which businesses will need to register, but it is predicted the legislation will capture about 3,000 companies.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
