Skip to Content

Bill C-365 calls for plan for implementation of open banking in Canada

By Kevin Landry

On November 9 2023, Bill C-365, An Act respecting the implementation of a consumer-led banking system for Canadians (“C-365”), short titled as the ‘Consumer-led Banking Act’ was read in the House of Commons.

C-365 follows several other recent developments in the fintech and payments space in Canada, namely the release of the Retail Payment Activities Regulations, and the Retail Payments Activities Act.[1] Importantly, it is a push toward implementation of open banking in Canada, which has been moving slowly forward in past years.

C-365 is not a plan for open banking in Canada; it calls for the implementation of a plan for open banking in Canada within 30 days of coming into force (or ten days after the start of the next session of the House). It would also require the Minister of Finance to table a report setting out reasons for any delay in the implementation of a bill on open banking if not tabled within six months of C-365 coming into force.

Background

In March 2022, the Federal Government named Abraham Tachjian as the open banking lead, and was mandated to develop a ‘made in Canada’ regime based on the recommendations in the final report of the Advisory Committee on Open Banking. Although progress on implementation is ongoing, no implementation plan has been released to date.

Open banking is currently in use in Australia and the United Kingdom. There have been several phases to this discussion in Canada, and more information on past activity and future steps is available online.

What is open banking?

Currently in Canada most fintech apps operate via ‘screen scraping’- a user provides their banking log-in information to a third-party application who enters the users online banking, takes applicable data and uses it for purposes of the app. This poses obvious security risks and can give fintech companies access to passwords, transaction information and other sensitive data. Sharing passwords in this fashion can also leave consumers in breach of bank terms of service and at fault for fraudulent activities of nefarious fintech actors.

Open banking is a system that allows ownership of financial data by the user in some form. It would allow banks to securely share users’ financial data with an app on the user’s behalf using a secured online channel. It would no longer be necessary to provide banking passwords and credentials to access fintech products and services.


This update is intended for general information only. If you have questions about the above, please contact the author(s) to discuss your needs for specific legal advice relating to the particular circumstances of your situation.

Click here to subscribe to Stewart McKelvey Thought Leadership.


[1] Stewart McKelvey had previously written about these here, here and here

Archive

Summary of Bill 14 – Act to Amend the Fair Registration Practices in Regulated Professions Act

By Sheila Mecking and Danielle Bailey-Heelan On March 25, 2025, Bill 14 was introduced by the Acting Minister of Post-Secondary Education, Training and Labour to amend the Fair Registration Practices…

Read More

Enforceable equal wages: More changes for federal employers

BY Tiegan A. Scott & Sophie Poulos

By Tiegan A. Scott and Sophie Poulos The Canada Labour Code (the “Code”) may soon require federally regulated employers to review the wage rates of certain employees under Equal Treatment…

Read More

At a glance: Key changes coming to Prince Edward Island’s Employment Standards Act

Murray L. Murphy, K.C., CPHR and Jacob E. Zelman Prince Edward Island’s new Employment Standards Act (“ESA”) received Royal Assent on November 29, 2024, with an effective date to be to…

Read More

Making AI work for your business

Sarah Dever Letson and Lauren Agnew Interested in understanding the impacts of AI on your business? Looking to understand how these intersect with concerns around privacy and cybersecurity? Curious about…

Read More

Navigating the “Towns Act”: Key changes and transition considerations for towns in Newfoundland and Labrador

BY Stephen Penney & Danielle Harris

By Stephen Penney and Danielle Harris Introduction On January 1, 2025, the Towns and Local Service Districts Act (the “Towns Act”) came into effect, changing the legislative landscape for towns…

Read More

Dealing with Canadian “retaliatory” tariffs: A primer for importers

BY Michelle Chai & Graeme Hiebert

By Michelle Chai & Graeme Hiebert In response to the 25% tariffs levied on virtually all Canadian goods by the United States, Canada has announced United States Surtax Order (2025-1)…

Read More

Balancing inclusivity and workplace safety

BY Sheila Mecking & Lauren Sorel

By Sheila Mecking and Lauren Sorel Introduction Arbitrator Trisha Perry addressed the complex interests between inclusive education and workplace safety in a recent decision (New Brunswick Teachers’ Federation v New…

Read More

University governance in Nova Scotia: The impacts of Bill 12

BY Colleen Keyes,
K.C.
& Harper Metler

By Colleen Keyes, K.C. and Harper Metler On February 19, 2025, the Nova Scotia Government introduced Bill No. 12: An Act Respecting Advanced Education and Research (“Bill 12”), which is…

Read More

Privacy rights in the workplace: Supreme Court expands charter protections for public school teachers

BY Chad Sullivan & Chiara Nannucci

By Chad Sullivan and Chiara Nannucci Introduction A recent Supreme Court of Canada decision (York Region District School Board v. Elementary Teachers’ Federation of Ontario, 2024 SCC 22) has once…

Read More

New rules allowing Nova Scotia private sector employers to join Public Service Superannuation Plan take effect

BY Dante Manna & Noah Archibald

By Dante Manna and Noah Archibald The Provincial Government recently proclaimed the Private Sector Pension Plan Transfer Act (the “Transfer Act”) and newly released regulations on February 4, 2025. The…

Read More

Search Archive