Bank of Canada delegates RPAA authorities

Summary#

This notice says the Bank of Canada plans to delegate several powers under the Retail Payment Activities Act to two senior staff. The proposal was published and signed by Tiff Macklem on May 30, 2024, and the delegations would start when section 29 of the Act comes into force.

What it does#

• Gives the Executive Director responsible for retail payments supervision authority to:

  • Decide when parts of the Retail Payment Activities Act (or its regulations) do not apply to a payment service provider or a class of providers.
  • Review and decide appeals of the Bank’s refusal to register a payment service provider.
  • Review and decide on notices of intent to revoke a registration, and order revocation in some cases.
  • Decide on alleged violations and related administrative monetary penalties after a provider makes representations.
  • Review Bank decisions about whether a provider has complied with a compliance agreement after a notice of default.

• Gives the Managing Director responsible for retail payments supervision authority to:

  • Designate people or groups as “authorized persons” for certain supervisory powers.
  • Certify unpaid amounts for recovery of administrative penalties.
  • Issue compliance orders directing a payment service provider to stop, do, or refrain from actions.
  • Apply to a superior court to enforce compliance orders.

• Each delegation includes fallback rules if the named office-holder is absent or the post is vacant (for example, an acting executive or the Deputy Governor may act).

• The notice is a proposal from the Governor of the Bank of Canada, not an immediate change. The delegations take effect only when section 29 of the Retail Payment Activities Act is in force.

Who's affected#

• Most directly: businesses that offer payment services in Canada (payment service providers).
• Also affected: banks, fintech firms, and others who interact with the Bank on registration, supervision, compliance, or enforcement under the Act.
• Internally: staff and leaders at the Bank of Canada who will carry out those supervisory and enforcement tasks.
• If it’s unclear who exactly will be affected in specific cases, that will depend on how the Bank uses these delegated powers once the Act is in force.

Why it matters#

• It shows how the Bank of Canada plans to run supervision and enforcement under the new Retail Payment Activities Act once the law comes into force.
• Delegating these powers to senior managers can speed up day-to-day decisions on registration, penalties, and compliance.
• For companies offering payment services, the change signals who will make decisions about registration, revocation, penalties, and court enforcement under the new regime.