Payments Canada SAC membership rules

Summary#

This is a by‑law change from the Board of the Canadian Payments Association (known as Payments Canada) that sets how its Stakeholder Advisory Council (SAC) is made up and paid. The change lets Payments Canada set certain seats for consumer representatives and allows those consumer reps to be paid. The by‑law was registered as SOR/2021‑37 and appeared in the Canada Gazette on March 31, 2021.

What it does#

• Replaces parts of Canadian Payments Association By‑law No. 1 — General to spell out SAC rules.
• Sets the SAC size to a maximum of 20 members, including between 1 and 2 elected directors of the Association.
• Requires the SAC to include at least 12 people who represent payment users, with specific sub‑representation:
  • at least 2 consumer representatives,
  • at least 1 representative of the retail sector,
  • at least 2 representatives of federal and provincial governments,
  • at least 1 representative of the treasury and cash management services sector.
• Requires at least 1 member who represents payment service providers.
• Changes member terms so non‑director SAC members are appointed for up to 3 years and may be reappointed any number of times.
• Prescribes consumer representatives on the SAC as a class that may be eligible for remuneration under the Canadian Payments Act.
• The by‑law’s coming‑into‑force is tied to when a part of the Budget Implementation Act, 2019 comes into force, or, if later, the day the by‑law is registered (it was registered on March 15, 2021).
• Note: a portion of the new wording replacing section 11 in the Gazette extract is cut off, so the full new eligibility sentence is not shown in the source provided.

Who's affected#

• Payments Canada members — mainly banks, credit unions, and other financial institutions that use national payment systems.
• Consumer groups that represent payment users. They are now specifically recognized and can be paid, which may make it easier for some consumer groups to take part.
• Retailers, governments, treasury and cash management providers, and payment service providers who may be asked to join or consult with the SAC.
• The public may be indirectly affected because the SAC advises on rules and initiatives that shape how payment systems work in Canada.

Why it matters#

• It clarifies who gets a voice on the SAC. That affects whose views get heard when Payments Canada advises or changes payment rules.
• Allowing payment for consumer representatives removes a financial barrier for some consumer groups. Payments Canada estimates the shared annual cost to members to support those payments at $60,000.
• The change gives Payments Canada more flexibility to update SAC membership as the payments landscape changes. That could influence future decisions about clearing, settlement, and other payment system rules that affect how people and businesses move money.