Vol. 149, No. 12 — June 17, 2015
SOR/2015-130 June 5, 2015
CANADIAN PAYMENTS ACT
Canadian Payments Association Reporting Requirements Regulations
P.C. 2015-757 June 4, 2015
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 35(1) (see footnote a) of the Canadian Payments Act (see footnote b), makes the annexed Canadian Payments Association Reporting Requirements Regulations.
CANADIAN PAYMENTS ASSOCIATION REPORTING REQUIREMENTS REGULATIONS
1. The following definitions apply in these Regulations.
« Loi »
“Act” means the Canadian Payments Act.
“five-year corporate plan”
« plan d’entreprise quinquennal »
“five-year corporate plan” means the plan referred to in section 23 of the Act.
FIVE-YEAR CORPORATE PLAN
2. (1) A five-year corporate plan for the Association must contain
- (a) for the fiscal year for which the plan is submitted, its operating budget and capital expenditures budget;
- (b) for each of the four fiscal years after the fiscal year referred to in paragraph (a), its operating budget forecast and capital expenditures budget forecast;
- (c) for the fiscal year before the fiscal year referred to in paragraph (a), its audited financial statements, or, if those statements are not available, its updated operating budget and updated capital expenditures;
- (d) for the fiscal year before the fiscal year for which information is required under paragraph (c), its audited financial statements;
- (e) an explanation of any major variance in the amounts provided under paragraphs (a) to (d); and
- (f) an explanation of any major variance between an amount provided under paragraphs (a) to (d) for a fiscal year and any amount provided in the previous five-year corporate plan for that fiscal year.
(2) The Board must submit the five-year corporate plan to the Minister for approval no later than three months after the day on which the fiscal year for which the plan is submitted begins.
(3) The Board must submit any significant amendment to the approved five-year corporate plan to the Minister for approval.
3. The report referred to in section 24 of the Act must be prepared — and published on the Association’s Internet site — no later than five months after the day on which the fiscal year ends.
COMING INTO FORCE
S.C. 2014, c. 39
4. These Regulations come into force on the day on which subsection 356(1) of the Economic Action Plan 2014 Act, No. 2 comes into force but if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Legislative amendments to the Canadian Payments Act establish a new accountability framework for the Canadian Payments Association (CPA), including a requirement to submit an annual corporate plan for ministerial approval and to publish an annual report on the CPA Web site. The purpose of the Regulations is to clarify elements of this new framework.
The Canadian Payments Association (CPA) is a statutory body with a mandate to establish and operate national systems for the exchange, clearing, and settlement of payments between banks, credit unions, and other CPA members. Two systems operated by the CPA are the Automated Clearing and Settlement System (ACSS) and the Large Value Transfer System (LVTS).
The CPA is not currently subject to any corporate reporting requirements, and is not subject to the general obligations imposed by the Financial Administration Act. Prior to the recent legislative amendments, the Canadian Payments Act did not offer strong accountability: the CPA was not required to submit a corporate plan to its responsible minister or to produce any reports to Parliament or the public on its financial and operational performance or attainment of its public policy objectives.
In this regard, the CPA’s accountability framework compared poorly with best practices of federal agencies or Crown corporations. As a statutory body serving a public policy function, a strengthened accountability framework for the CPA will promote greater transparency and greater organizational effectiveness.
The Economic Action Plan 2014 Act, No. 2 (the Act) received royal assent on December 16, 2014. The Act includes a series of amendments to the Canadian Payments Act to impose a new accountability framework, including a requirement for the CPA to annually submit a five-year corporate plan to the Minister of Finance for approval, and to publish its annual report, including audited financial statements, on its Web site. Amendments to the Canadian Payments Act also provide a new authority to the Governor in Council to issue regulations prescribing the form, timing, content and manner for preparing and submitting the corporate plan and annual report.
The Regulations aim to support the new accountability framework for the CPA by providing direction on preparing and submitting the corporate plan and annual report.
The Canadian Payments Association Reporting Requirements Regulations (the Regulations)
- specify that the CPA must submit its annual five-year corporate plan for approval to the Minister of Finance within three months of the end of the preceding fiscal year;
- specify that the CPA must publish its annual report within five months of the end of the preceding fiscal year;
- clarify that any significant amendments to an approved corporate plan must be submitted to the Minister of Finance for approval; and
- describe the form and manner in which the operating and capital budgets are to be presented in the corporate plan.
The “One-for-One” Rule does not apply, as the Regulations do not impose new administrative burden costs on a commercial business.
Small business lens
The small business lens does not apply to the Regulations, as there are no costs to small business.
The CPA was consulted and supports the Regulations.
The Regulations ensure the timely provision of information to the Minister of Finance and Department of Finance officials on the CPA’s operational and financial performance and strategic priorities. As a result, this will enhance the Minister’s ability to monitor whether the CPA is being governed in the public interest and meeting its statutory obligations to ensure (1) the safety and soundness of CPA systems; and (2) that these systems are economically efficient and meet the needs of end-users such as business and consumers. The timely provision of this information will also enable earlier intervention by the Government should concerns arise.
Implementation, enforcement and service standards
The CPA will be required to submit its first corporate plan to the Minister of Finance for approval no later than March 31, 2016, and publish its annual report no later than May 31, 2016.
Financial Sector Division
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