| The
Canadian Payments Act sets out the legal framework for the CPA,
including its mandate, the types of organizations that are eligible for
membership, the role of the Board of Directors and certain oversight
responsibilities for the Minister of Finance.
Under the Act, CPA by-laws are subject
to approval by the Governor-in-Council (i.e. the federal cabinet). In
addition, the Minister of Finance has the authority to review new CPA
rules or amendments to existing rules.
In addition, the
Payment Clearing and Settlement Act gives the Bank of Canada
responsibility for oversight of clearing and settlement systems for the
purpose of controlling systemic risk. The CPA’s Large Value Transfer
System (LVTS) has been designated under this Act, and
consequently the Bank of Canada acts in a supervisory capacity in
relation to it. |
