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

SHARE

Archive

Search Archive


 
 

Atlantic Employers’ Counsel – Fall 2013

November 19, 2013

CHANGES, CHANGES AND MORE CHANGES: KEEPING UP WITH THE TEMPORARY FOREIGN WORKER PROGRAM These days, Canada’s Temporary Foreign Worker Program (“TFWP”) is more top of mind than ever for Canadian employers. This is in part…

Read More

Client Update: Time’s Ticking: Not-for-Profit Corporations

October 17, 2013

By October 17, 2014 existing not-for-profit corporations incorporated under Part II of the Canada Corporations Act (the “Old Act”) are required to be continued under the new Canada Not-for-Profit Corporations Act (the “New Act”) or face the possibility of automatic administrative…

Read More

Doing Business in Atlantic Canada (Fall 2013)(Canadian Lawyer magazine supplement)

October 9, 2013

IN THIS ISSUE: Reasonable Cause: A necessary prerequisite for random alcohol testing policies by Mark Tector, Steve Carpenter, CHRP, Melissa Everett Withers, Ruth Trask Business Succession: Why is it critical? by Richard Niedermayer, TEP Privacy Please: Nova Scotia brings in new…

Read More

Client Update: Nova Scotia Amends Foreign Worker Rules to Exempt Some Recruiters and Employers From Licensing and Registration Requirements

September 18, 2013

On May 19, 2011, Nova Scotia’s Labour Standards Code was amended to protect foreign workers from exploitation by recruiters and employers. These amendments imposed a requirement for third-party recruiters to obtain a license from the Province to…

Read More

Client Update: Summary of Pender vs. Squires, 2013 NLCA 37

September 10, 2013

Facts This appeal arose from a decision which held that the Dominion of Canada General Insurance Company (“Dominion”) has a duty to defend Larry and Lona Hannam and their teenage son Jordan in an action…

Read More

Atlantic Employers’ Counsel – Summer 2013

August 8, 2013

DUE DILIGENCE Generally, occupational health and safety legislation in Atlantic Canada, like other jurisdictions, requires employers to take reasonable precautions to ensure the health and safety of workers in their workplace. Read More INCIDENT RESPONSE…

Read More

Client Update: Cyber-safety Act comes into effect for Nova Scotia

August 8, 2013

The Cyber-safety Act (“the Act”), excepting Part V (that part amending the Safer Communities and Neighbourhoods Act), was proclaimed August 6, 2013 and is now in effect. As discussed in our May 17, 2013 Client Update and our HRLaw blog The business case…

Read More

Client Update: The “historic trade-off” prevails

August 7, 2013

The Supreme Court of Canada has now released the much anticipated decision in the case of Marine Services International Ltd. v Ryan Estate, 2013 SCC 44. In doing so, the high court has signaled, at least…

Read More

Client Update: A judge’s guide to settlement approval and contingency fee agreements in P.E.I.

July 25, 2013

In Wood v. Wood et al, 2013 PESC 11, a motion pursuant to Rule 7.08 of the Rules of Civil Procedure for court approval of a settlement involving a minor, Mr. Justice John K. Mitchell approved the settlement among the…

Read More

Client Update: Directors will be liable for unpaid wages and vacation pay

July 8, 2013

Clients who sit on boards of corporate employers should take note of recent amendments made to New Brunswick’s Employment Standards Act (the “ESA”) which could increase their exposure to personal liability in connection with claims advanced by…

Read More

Search Archive


Scroll To Top