Consultations on proposed changes to compliance by-law, election of directors regulations open
Amendments to introduce an expedited investigation process and increase the maximum penalty amount.
The Government of Canada has launched a 30-day public consultation on proposed amendments to Canadian Payments Association By-law No. 6 - Compliance (the Compliance By-law). The proposed changes are now available in the Canada Gazette, Part 1.
Payments Canada members and system participants must comply with the requirements set out in Payments Canada’s by-laws and rules, which are critical to ensuring the continued safety, security and reliability of Canada's national payments infrastructure and the interests of end-users — Canadians and Canadian businesses. By-law No. 6 outlines how Payments Canada investigates potential contraventions and the sanctions that may follow. A contravention occurs when a member fails to comply with applicable requirements.
One of the proposed amendments involves the introduction of an expedited investigation process for simple or uncontested contraventions that would allow the President to investigate without referral to a committee. Other procedural rights would remain, including the right to a fair and impartial investigation.
To ensure that penalties remain an effective compliance tool and continue to encourage adherence to by-laws and rules, Payments Canada is proposing an increase in the maximum penalty amount. If a member is found to be in contravention of the applicable requirements, one of the sanctions available is to impose a penalty not to exceed $250,000 for each contravention. The maximum penalty is proposed to increase from $250,000 to $1,000,000. This measure is also intended to account for inflation over time and to encourage compliance.
In a separate but concurrent effort, a 30-day public consultation is also open for proposed changes to the Canadian Payments Association Election of Directors Regulations (the Regulations). Proposed changes to the regulations would amend the criteria for independent directors by reducing the cooling-off period in the criteria from three years to one year and allowing directors, senior officers or employees of eligible entities that are not members of Payments Canada to serve as independent directors, provided the eligible entities are not majority-owned or controlled by one or more members.
The Board of Directors serves an important role in governing and managing the affairs of Payments Canada and providing insight and guidance on strategic and policy matters to support the success of Canada's national payment infrastructure. These proposed changes will support the Board continuing to be represented by top experts in payments, payments infrastructure and other relevant sectors of the Canadian economy.
The consultation period for each of By-law No. 6 and the Regulations closes November 10, 2025. To participate in either of these consultations and provide feedback on the proposed amendments, review the full proposals on the Canada Gazette website.
