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In light of new consumer protection legislation that will take effect this fall, partner Brigitte Goulard spoke with The Logic about the changes this legislation will present—and what it will mean…
Canada
Finance and Banking
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In light of new consumer protection legislation that will take
effect this fall, partner Brigitte
Goulard spoke with
The Logic about the changes this legislation will
present—and what it will mean for Canadian businesses and
consumers.
On November 1, non-bank businesses that make money from online
payment services, or companies that handle payments on behalf of
Canadians, will need to register with the Bank of Canada as part of
the new Retail Payment Activities Regulations.
The regulations are designed to protect consumers against risks
associated with online payment processing, such as hacks or company
failures. “If you had money in a wallet with a payment
service provider, and the provider went down, that was it, your
money was gone,” Brigitte said.
“There was no security on that money.”
While certain activities performed by payment service providers
(such as fees and lending) had already been covered by existing
legislation, the government’s move to give the Bank of Canada
oversight of these companies is new, Brigitte explained.
Under the legislation, affected businesses will need to meet
certain standards for safeguarding users’ funds, mitigating
risks, and reporting any incidents. The Bank of Canada is still
evaluating which businesses will need to register, but it is
predicted the legislation will capture about 3,000
companies.
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