Proposed Regulations (the Proposed Regulations) under the Retail Payment Activities Act (RPAA) have been released for public comment for a period ending March 28, 2023.
The RPAA, which received Royal Assent in June, 2021 and the proposed Regulations introduce a new retail payment supervisory regime for the retail payment activities of Payment Service Providers (PSPs) in Canada.
The payment activities of PSPs, which include card networks, payment processors, and digital wallets, are currently not supervised in Canada. The federal Department of Finance believes the lack of requirements and supervision increases risks to Canadians, such as the risk of financial loss in instances of business insolvency, and threats to the security of sensitive personal and financial information of Canadians and Canadian businesses.
The Draft Regulations for the Retail Payment Activities Act are available for download.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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