Financial sector highlights from Budget 2018

OTTAWA, March 1, 2018 — Canada’s federal government recently announced Budget 2018, Equality and Growth: A Strong Middle Class, which focuses on four key elements: growth; progress; advancement; and reconciliation. 

Budget 2018 includes specific measures relevant to Payments Canada, our financial institution members and key stakeholders. These components include legislative amendments that support our Modernization efforts, to investments in cybersecurity, which is in line with our mandate to ensure safe and secure payment systems.

The budget priorities demonstrate the government’s commitment to increasing Canada’s economic growth and global competitiveness in an evolving digital landscape by strengthening and modernizing Canada’s financial sector. To read the full Budget, visit budget.gc.ca

Financial sector highlights:

• Financial Market Infrastructure Resolution — proposes legislative amendments that would implement a resolution framework for Canada’s systemically important Financial Market Infrastructures (FMIs). The objectives are to maintain the critical services of the FMI, promote financial stability and reduce potential public exposure to loss.
• Review of Open Banking — proposes to undertake a review of the merits of open banking in order to assess whether open banking would deliver positive results for Canadians with the highest regard for consumer privacy, data security and financial stability. 
• Supporting an Innovative Retail Payments System — proposes to undertake consultations with stakeholders, including provinces and territories, on a proposed oversight framework that aims to ensure retail payment services continue to be reliable and safe for Canadians and the providers of such services can continue to develop faster, cheaper and more convenient methods of payments. Concluding the consultation process, the government intends to introduce legislative amendments to implement a new framework.

In the coming months, the government proposes to launch a review of the Canadian Payments Act to ensure Payments Canada is well positioned to continue to fulfill its public policy objectives of ensuring the efficiency, safety and soundness of its systems.

• Modernize the Financial Sector Framework — proposes to introduce legislative amendments to implement targeted proposals from the earlier financial sector legislative review. Priority amendments would adapt the legislative framework and facilitate greater partnering in response to the emergence of financial technology (fintech). 
• Enhancing Consumer Protection in Banking — proposes to introduce legislation that would strengthen the Financial Consumer Agency of Canada’s tools and mandate and continue to advance consumers’ rights and interests when dealing with their banks. 

 Cybersecurity highlights:

• Ensuring Security and Prosperity in the Digital Age — The Government of Canada is implementing a plan for security and prosperity in the digital age to protect against cyber-attacks, including investments to fund a new National Cyber Security Strategy.
• Improving Cyber Security — funding to the Communications Security Establishment to create a new Canadian Centre for Cyber Security, which will ensure secure and resilient Canadian cyber systems; invest in an innovative and adaptive cyber ecosystem; and strengthen leadership, governance and collaboration.
• Enabling Digital Services to Canadians — proposes significant investments in Shared Services Canada and the Communications Security Establishment to ensure that these organizations are properly resourced to address evolving IT needs and opportunities, and proactively address cyber security threats.