Global fintech and funding innovation ecosystem
November 2, 2022   FinTech and Alternative Finance, Fintech and Networking Events, Legal Issues, Regulation, Consultation, Payments, Transfers, Rewards   No comments

Bank of Canada Speech: Ron Morrow, Executive Director at CIX Summit – Retail Payment Regulations

Bank of Canada | Ron Morrow | Nov 2, 2022

Ron Morrow Executive Director BoC - Bank of Canada Speech: Ron Morrow, Executive Director at CIX Summit - Retail Payment Regulations

Image: Ron Morrow, Executive Director, BoC at CIX 2022

BoC Regulation:  New technology means new payment options—and new rules

  • Growth:  In recent years, we’ve seen a sharp rise in the use of mobile and digital payments.  Canadians place their trust in payment service providers (PSPs) every day. When money changes hands electronically in new and different ways, we at the Bank need to make sure that we protect both consumers and the payments system.  The federal government passed the Retail Payment Activities Act last summer, making the Bank responsible for supervising PSPs.

See:  Payments Canada Delays Launch of Real-Time Rails Again (without a timeline)

  • Who will be affected:  Our new supervisory framework could apply to anyone in the business of helping people and companies make financial transactions (or transfer and store their money through electronic means). This includes: payment processers, digital wallets, and money transferers
  • Register with BoC:  Under the new rules, PSPs will be required to register with the Bank of Canada.
    • Banks and credit unions aren’t part of this new framework because they are already supervised at the federal and provincial levels.
    • BoC will maintain public lists of all PSPs that have signed up or had their registration refused or revoked
    • Enforcement: We have the power to take action if a PSP does not comply with the Act or its regulations.
    • Risk-based:  The new rules will apply to many entities, but we won’t adopt a one-size-fits-all approach because we recognize that not all PSPs are set up or operate in the same way. This means that the actions we take in our supervisory role will be guided by the level of risk each PSP may pose to consumers and the payments system.
      • We will require PSPs to ensure that they return funds to end users if the PSP becomes bankrupt, but we won’t prevent that bankruptcy from happening in the first place.
      • We will establish clear requirements and expectations so that PSPs can adjust their operations in line with the rules.
    • We also won’t handle customer complaints about fees or other issues they may have with the treatment they receive from a PSP.

See:  Bank of Canada: The Latest on Retail Payments Supervision and Survey

  • What's next?  The Department of Finance Canada will publish the draft regulations online in the near future so PSPs can provide comments. Once the regulations are finalized, we will publish our guidance and asking for more feedback.

Continue to the full article --> here

Read the full speech --> here

NCFA Jan 2018 resize - Bank of Canada Speech: Ron Morrow, Executive Director at CIX Summit - Retail Payment RegulationsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Bank of Canada Speech: Ron Morrow, Executive Director at CIX Summit - Retail Payment RegulationsFF Logo 400 v3 - Bank of Canada Speech: Ron Morrow, Executive Director at CIX Summit - Retail Payment Regulationscommunity social impact - Bank of Canada Speech: Ron Morrow, Executive Director at CIX Summit - Retail Payment Regulations

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Bank of Canada Speech: Ron Morrow, Executive Director at CIX Summit - Retail Payment Regulations




 

Leave a Reply

Your email address will not be published. Required fields are marked *

3 × 3 =