Payments Canada governance changes effective April 2, 2021

Summary#

This Order fixes April 2, 2021 as the date that Subdivision B of Division 1 of Part 4 of the Budget Implementation Act, 2019, No. 1 comes into force. That brings into force changes affecting the Canadian Payments Act and the governance of Payments Canada.

What it does#

• Sets April 2, 2021 as the day the listed amendments take effect.
• Allows elected directors of Payments Canada to serve an additional three‑year term (so they can serve longer than before).
• Lets the Chair and Deputy Chair of the board serve terms of up to three years.
• Removes the rule in the law that defined the exact makeup of the Stakeholder Advisory Council, so that council membership can be set in Payments Canada’s by‑laws.
• Permits Payments Canada to pay members of the Stakeholder Advisory Council, if its by‑laws allow it. Payments Canada has estimated remuneration could be about $30,000 per year per individual, though final figures would be set in by‑laws.

Who's affected#

• Payments Canada — the national operator of Canada’s core payments systems.
• Financial institutions that are members of Payments Canada, including large banks (they pay fees that fund Payments Canada).
• Members of the Stakeholder Advisory Council, including proposed consumer representatives and other industry participants.
• Consumer groups and payment service providers who advise or interact with Payments Canada.
• The wider public is affected indirectly because Payments Canada runs systems that handled about $55 trillion in 2019 — roughly $218 billion each business day.

Why it matters#

• Letting directors and board leaders serve longer aims to keep experienced people in place while Payments Canada completes long‑term modernization work. That can help with stable, informed decision making for the national payment system.
• Allowing pay for consumer representatives should make it easier for consumer groups to participate. That can bring more balanced advice to the board, rather than relying only on unpaid volunteers.
• The change does not add costs for the federal government. Any new payments would be paid from Payments Canada’s budget, which is recovered from member institutions through fees.
• This Order is administrative: it brings into force changes already passed in the Budget Implementation Act, 2019, No. 1 rather than creating new policy.