C-6914470-71Elizabeth II – 1-2 Charles III2021-2022-2023-2024An Act to establish a consumer-driven banking frameworkConsumer-Driven Banking ActConsumer-Driven Banking Act20246
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C-36.7517, s. 1982024[Enacted by section 198 of chapter 17 of the Statutes of Canada, 2024, sections 4 to 7, 12 and 13 not in force.]Short TitleShort titleThis Act may be cited as the Consumer-Driven Banking Act.InterpretationDefinitionsThe following definitions apply in this Act.Agency means the Financial Consumer Agency of Canada established under section 3 of the Financial Consumer Agency of Canada Act. (Agence)derived data means data about a consumer, product or service that has been enhanced by a participating entity to significantly increase its usefulness or commercial value. (données dérivées)entity means a corporation, trust, partnership, fund or an unincorporated association or organization. (entité)Minister means the Minister of Finance. (ministre)Senior Deputy Commissioner means the Senior Deputy Commissioner for Consumer-Driven Banking appointed under subsection 7.2(1) of the Financial Consumer Agency of Canada Act. (commissaire adjoint principal)PurposePurposeThe purpose of this Act is to establish a framework within which consumers, including small businesses, can direct that their data be shared among participating entities of their choice and to ensure that the sharing of data among participating entities is safe and secure.ApplicationDataThis Act applies in respect of data that relates to the following products and services, including data that is provided by a consumer and data that is provided for in the regulations:deposit accounts;registered and non-registered investment accounts;payment products, including credit cards and prepaid payment products;lines of credit, mortgages or hypothecs and other kinds of loans; andother products or services provided for in the regulations.ExclusionThis Act does not apply in respect of derived data.Limit — editing dataData that is shared between participating entities in accordance with this Act is to be shared in a manner that does not enable the participating entity that receives the data to edit the data on servers that are used by the participating entity that provides the data.RestrictionNothing in this Act affects any restriction imposed under the Bank Act on banks with respect to the sharing of information about a consumer with an insurance company, agent or broker for the business of insurance.RegistryParticipating entitiesThe Agency must maintain a public registry of participating entities that contains information respecting each participating entity.Technical StandardsDesignation of bodyThe Minister may, by order, designate a body to be the technical standards body that is responsible for establishing the technical standards that are to be used for the sharing of data by participating entities in accordance with this Act.PrinciplesIn designating the technical standards body, the Minister must take into account the following principles:the need to ensure the safe, secure and efficient sharing of data among participating entities;fairness, accessibility, transparency and good governance;any other principle that the Minister considers relevant; andany other principle provided for in the regulations.Publication in Canada GazetteThe Minister must publish the order in the Canada Gazette.ReviewThe Minister must review the designation every three years.RevocationThe Minister may, by order, revoke the designation, including in the following circumstances:the Senior Deputy Commissioner advises the Minister to do so;the Minister is of the opinion that the designation is no longer consistent with the principles referred to in subsection 8(2);the Minister is of the opinion that the designation poses a risk to national security; orthe Minister is of the opinion that the designation poses a risk to the integrity or security of the financial system in Canada.Publication in Canada GazetteThe Minister must publish the order in the Canada Gazette.Statutory Instruments ActThe Statutory Instruments Act does not apply to an order made under subsection 8(1) or 10(1).Annual reportThe technical standards body that is designated must submit an annual report to the Senior Deputy Commissioner in accordance with the regulations.Change that has significant impactThe technical standards body that is designated must notify the Senior Deputy Commissioner of any change that has a significant impact on the technical standards body or the technical standards, including any change to the operation of the technical standards or the governance, composition or decision-making of the technical standards body, as soon as feasible but no later than the seventh day after the day on which the change takes effect.ProhibitionsClaiming to be participating entityAn individual or entity, other than a participating entity, must notuse the term “participating entity” or a variation, abbreviation or equivalent of that term, or any words, name or designation — in any language — in a manner that leads to a reasonable belief that the individual or entity is a participating entity for the purposes of this Act; orrepresent themselves, in any way or by any means, to be a participating entity for the purposes of this Act.False or misleading informationAn individual or entity must not knowingly provide false or misleading information in relation to their participation under this Act.Offences and PunishmentOffence and punishmentEvery individual or entity who contravenes section 14 or 15 is guilty of an offence and is liableon conviction on indictment,in the case of an individual, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both, orin the case of an entity, to a fine of not more than $5,000,000; oron summary conviction,in the case of an individual, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both, orin the case of an entity, to a fine of not more than $500,000.Order to complyIf an individual or entity is convicted of an offence under this Act, the court may, in addition to any punishment that it may otherwise impose, order the individual or entity to comply with the provisions of this Act or the regulations in respect of which the individual or entity was convicted.Additional fineIf an individual or entity is convicted of an offence under this Act, the court may, if it is satisfied that as a result of the commission of the offence the convicted individual or entity acquired any monetary benefits or that monetary benefits accrued to the convicted individual or entity or the individual’s spouse, common-law partner or other dependant, order the convicted individual or entity to pay, despite the maximum amount of any fine that may otherwise be imposed under this Act, an additional fine in an amount equal to three times the court’s estimation of the amount of those monetary benefits.Party to offenceIf an entity commits an offence under this Act, any director, any officer, any agent or mandatary or any principal officer of the entity who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction or on conviction on indictment to the punishment provided for an individual in respect of the offence, whether or not the entity has been prosecuted or convicted.Limitation periodProceedings by way of summary conviction in respect of an offence under this Act may be commenced at any time within, but not later than, two years after the day on which the subject matter of the proceedings became known to the Senior Deputy Commissioner.Certificate of Senior Deputy CommissionerA document appearing to have been issued by the Senior Deputy Commissioner, certifying the day on which the subject matter of any proceedings became known to the Senior Deputy Commissioner, is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it.RegulationsRegulationsThe Governor in Council may, on the recommendation of the Minister, make regulationsproviding for data for the purposes of subsection 4(1);providing for products and services for the purposes of paragraph 4(1)(e);providing for principles for the purposes of paragraph 8(2)(d); andrespecting the annual report referred to in section 12, including the information that is to be included in the report and the form and manner in which, and the time within which, it is to be submitted.Coming into ForceOrder in councilSections 4 to 7, 12 and 13 come into force on a day or days to be fixed by order of the Governor in Council.