Designation

Designation by Minister

37. (1) The Minister may, if he or she considers that it is in the public interest to do so, designate a payment system that in the opinion of the Minister

    (a) is national or substantially national in its scope; or

    (b) plays a major role in supporting transactions in Canadian financial markets or the Canadian economy.

Factors

(2) The following factors shall be considered in a determination of whether it is in the public interest to designate a payment system:

    (a) the level of financial safety provided by the payment system to the participants and users;

    (b) the efficiency and competitiveness of payment systems in Canada; and

    (c) the best interests of the financial system in Canada.

Consultation

(3) Before a payment system is designated, the Minister shall consult the manager of the payment system or, if there is none, the participants and may consult interested parties, with respect to the effect of the designation.

Notice

(4) The Minister shall notify the manager of a designated payment system or, if there is none, the participants of the designation in such manner as the Minister considers appropriate.

Designation not statutory instrument

(5) A designation is not a statutory instrument for the purposes of the Statutory Instruments Act. However, it must be published in the Canada Gazette.

Rules

Copies of rules to be sent to Minister

38. (1) A copy of every rule governing a designated payment system shall be sent by the manager of the designated payment system or, if there is none, by the participants to the Minister

    (a) in the case of a rule made before the designation of the payment system, within 30 days after the designation; and

    (b) in the case of a rule made after the designation, within 10 days after it is made.

Effective date of rule

(2) A rule, other than a rule referred to in paragraph (1)(a), does not come into force before the thirtieth day after a copy of it is sent to the Minister under subsection (1), but the Minister may declare the rule to be in force at any time before that period expires.

Extension of time

(3) If the Minister is of the opinion that an extension of the period mentioned in subsection (2) is necessary to permit adequate review of a rule, the Minister may within 10 days after its receipt, on written notice to the sender of the rule, extend that period by up to 30 days.

Disallowance

(4) The Minister may disallow the whole or a part of a rule.

Exemption

(5) The Minister may exempt a designated payment system from the application of subsection (2).

Guidelines and Directives

Minister may issue guidelines

39. (1) The Minister may issue guidelines in respect of any matter relating to the administration or enforcement of this Part.

Guidelines public

(2) Guidelines shall be made available to the public and the Minister shall give notice of them in any manner that the Minister considers appropriate.

Minister may issue directive

40. (1) The Minister may issue a written directive to the manager or a participant of a designated payment system in respect of

    (a) the conditions a person must meet to become a participant in the designated payment system;

    (b) the operation of the designated payment system;

    (c) the interaction of the designated payment system with other payment systems; or

    (d) the relationship of the designated payment system with users.

Consultation

(2) Before a directive is given, the Minister shall consult the manager of a designated payment system or, if there is none, the participants, and may consult any interested party with respect to the content and effect of the directive.

Content

(3) The Minister may specify in a directive that a manager of a designated payment system or a participant shall, within such time as the Minister considers necessary,

    (a) cease or refrain from engaging in an act or course of conduct;

    (b) perform such acts as in the opinion of the Minister are necessary in the public interest; or

    (c) make, amend or repeal a rule.

Notification of implementa-
tion

(4) As soon as is practicable after implementing a directive and completing any actions required to be taken in connection with it, the person to whom it is given shall notify the Minister that the directive has been implemented and the action completed.

Directive not statutory instrument

(5) A directive is not a statutory instrument for the purposes of the Statutory Instruments Act. However, it must be published in the Canada Gazette.

Duty to comply

(6) A directive is binding on the person to whom it is given.

Information Requirements

Information requests

41. (1) If the Minister requires information in order to determine whether a payment system should be designated under subsection 37(1), the Minister may request that the manager of the payment system or a participant provide the Minister with any information and documents regarding the system that the Minister may require.

Ongoing information requests

(2) Every manager of a designated payment system or, if there is none, the participants shall, in respect of the designated payment system, provide the Minister with such information and documents as the Minister may from time to time request.

Compliance with request required

(3) Every person to whom a request is directed shall comply with the request.

Participants

Responsibi-
lity if foreign system manager

42. (1) If a designated payment system does not have a Canadian manager, the Canadian participants

    (a) shall comply with the obligations imposed under this Part on a manager of a designated payment system, and

    (b) have all the rights conferred by this Part on a manager of a designated payment system

in the same manner and to the same extent as if the Canadian participants were the manager of the designated payment system on which those obligations and rights are imposed or conferred and, for that purpose, any action that the Minister may take in respect of the manager of the designated payment system may only be taken in respect of its Canadian participants.

Failure to comply of system manager

(2) If a manager of a designated payment system fails to comply with the obligations imposed on it under this Part in respect of the designated payment system or otherwise contravenes this Part, the participants jointly and severally shall comply with those obligations or are liable for the contravention in the same manner and to the same extent as the manager.

Interpreta-
tion

(3) In subsection (1), a manager of a designated payment system or a participant is ``Canadian'' if the manager or participant is incorporated or formed under an enactment of Canada or a province.

PART 3

GENERAL

Information is confidential

43. (1) Information and documents obtained under this Act are confidential and shall be treated accordingly.

Disclosure permitted

(2) Nothing in subsection (1) prevents the Minister from disclosing any information or documents to

    (a) any government agency or regulatory body charged with the regulation of financial institutions, as defined in section 2 of the Bank Act, for purposes related to that regulation,

    (b) the Bank of Canada or any officer of the Bank authorized in writing by the Governor of the Bank, and

    (c) the Chairperson of the Canada Deposit Insurance Corporation or any officer of that Corporation authorized in writing by the Chairperson,

if the Minister is satisfied that the information or documents will be treated as confidential by the agency, body or person to whom they are disclosed.

No liability if in good faith

44. No action lies against Her Majesty, the Minister, any officer or employee of the Department of Finance or any person acting under the direction of the Minister for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed.

Compliance orders

45. If a person fails to comply with a provision of this Act or a directive issued to it by the Minister under subsection 19.3(1) or 40(1) in connection with any matter under this Act, or a person to whom a request referred to in section 41 is directed fails to comply with the request, the Minister may apply to a superior court for an order directing the person to comply with the provision, directive or request and, on the application, the court may so order and make any further order it thinks fit.

No stay on judicial review

46. On an application for judicial review under the Federal Court Act of a designation under subsection 37(1) or of a directive issued under subsection 19.3(1) or 40(1), no stay of the designation or directive shall be granted pending the final disposition of the application.

Offence and punishment

47. Every person who, without reasonable cause, contravenes any provision of this Act is guilty of an offence and

    (a) in the case of a natural person, liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding twelve months, or to both; or

    (b) in the case of any other entity, liable on summary conviction to a fine not exceeding $500,000.

Replacement of ``Chairman'' with ``Chairperson' '

237. The English version of the Act is amended by replacing the word ``Chairman'' with the word ``Chairperson'' wherever it occurs in the following provisions:

    (a) subsection 15(1) and (2);

    (b) subsection 16(2);

    (c) subsection 19(2);

    (d) subsection 20(1); and

    (e) subsection 20(3).

238. The headings before sections 5, 7, 8, 16, 17, 22, 25, 26, 29, 31, 34 and 35 of the Act are converted from roman to italic type to conform with the format of the new Parts enacted by this Act.

Chairperson continued

239. (1) The person who holds the office of Chairperson of the Board of the Canadian Payments Association immediately before section 8 of the Canadian Payments Act, as amended by section 218 of this Act, comes into force continues in office as the Chairperson of the Board for the remainder of the term for which that person was appointed Chairperson.

Directors continued

(2) Each person who holds office as a director of the Canadian Payments Association immediately before the day subsection 9(2) of the Canadian Payments Act, as amended by subsection 219(2) of this Act, comes into force ceases to hold office at the close of the next annual meeting of the members of the Association that is held after the coming into force of that subsection. The new directors of the Board shall be elected at that meeting.

1991, c. 48

Cooperative Credit Associations Act

240. (1) The definition ``subsidiary'' in section 2 of the Cooperative Credit Associations Act is replaced by the following:

``subsidia-
ry''
« filiale »

``subsidiary'' means an entity that is a subsidiary of another entity within the meaning of section 5;

1991, c. 48, par. 497(a)

(2) Paragraph (d) of the definition ``financial institution'' in section 2 of the Act is replaced by the following:

      (d) an insurance company or a fraternal benefit society incorporated or formed under the Insurance Companies Act,

(3) Section 2 of the Act is amended by adding the following in alphabetical order:

``Agency''
« Agence »

``Agency'' means the Financial Consumer Agency of Canada established under section 3 of the Financial Consumer Agency of Canada Act;

``branch''
« bureau »

``branch'', in respect of an association, means an agency, the head office and any other office of the association;

``Commission er''
« commissaire »

``Commissioner'' means the Commissioner of the Financial Consumer Agency of Canada appointed under section 4 of the Financial Consumer Agency of Canada Act;

``consumer provision''
« disposition visant les consomma-
teurs »

``consumer provision'' means a provision referred to in paragraph (b) of the definition ``consumer provision'' in section 2 of the Financial Consumer Agency of Canada Act;

``federal financial institution''
« institution financière fédérale »

``federal financial institution'' means

      (a) an association or a central cooperative credit society for which an order has been made under subsection 473(1),

      (b) a bank as defined in section 2 of the Bank Act,

      (c) a body corporate to which the Trust and Loan Companies Act applies, or

      (d) an insurance company or a fraternal benefit society incorporated or formed under the Insurance Companies Act;

``league''
« confédéra-
tion »

``league'' means a cooperative corporation incorporated by or under an Act of the legislature of a province whose membership consists wholly or primarily of local cooperative credit societies and whose principal purpose is the provision of administrative, technical, research and consultative services, and goods related to those services, to any cooperative credit society or to persons intending to organize or operate such a society;

``retail association''
« association de détail »

``retail association'', for the purpose of any particular provision of this Act, means an association as defined in the regulations;

241. The portion of subsection 3(3) of the Act before paragraph (a) is replaced by the following:

Deemed control

(3) A person is deemed to control, within the meaning of paragraph (1)(a), (b) or (d) , an entity if the aggregate of

242. Sections 4 and 5 of the Act are replaced by the following:

Holding body corporate

4. A body corporate is the holding body corporate of any entity that is its subsidiary.