Author(s):
Victoria Graham, Elizabeth Sale, Michelle Lally, Matthew T. Burgoyne, Adam Kardash, Simon Hodgett, Haley Adams
Mar 2, 2023
On February 11, 2023, the Department of Finance published draft regulations (the draft Regulations) under the Retail Payment Activities Act (the RPAA). The draft Regulations propose significant and, in some cases, fairly prescriptive requirements that are intended to apply to all payment service providers (PSPs), regardless of the overall size and complexity of the PSP.
The Bank of Canada estimates 2,500 PSPs in Canada will become subject to this new regime, of which approximately 96.4% will be considered a small business with approximate revenues of less than $5 million. It remains to be seen whether the principles of proportionality and necessity, as articulated in the Regulatory Impact Analysis Statement accompanying the draft Regulations (the Impact Statement) will be met, and whether these small businesses will be able to successfully transition to this new regime.
The stakeholder consultation period for the draft Regulations is 45 days, which will run through to…
