Payment Clearing and Settlement Regulations (SOR/2019-257)

Marginal note:Notice — offer of compensation

• 11 (1) Within a reasonable period of time after the day specified in the notice published under section 11.24 of the Act, the Bank must give each person or entity that was prescribed in respect of the clearing and settlement system or clearing house a notice containing an offer of compensation in an amount equal to, or of a value estimated by the Bank to be equal to, the compensation to which that person or entity is entitled.

• Marginal note:Contents of notice

  (2) The notice must

  • (a) state that an order has been made under paragraph 11.09(1)(b) or subsection 11.11(1) of the Act;

  • (b) describe the order’s effects;

  • (c) state that the prescribed person or entity has 45 days beginning on the day on which a summary of the notice is published in the Canada Gazette to notify the Bank of their decision to accept or object to the offer, or to object to the absence of an offer;

  • (d) state that if the offer or the absence of an offer is objected to by the prescribed person or entity, the compensation to be paid will be determined by an assessor; and

  • (e) state that if the prescribed person or entity does not notify the Bank of their objection within the period set out in paragraph (c), the person or entity will receive the compensation offered or no compensation, as the case may be, and will not be permitted to contest its amount or value or the fact that no compensation is offered.

Marginal note:Publication

12 A summary of the notice given under subsection 11(1) must be published in the Canada Gazette and on the website of the clearing house.

Marginal note:Payment of compensation

13 The Bank must pay a prescribed person or entity referred to in section 6 any compensation offered under subsection 11(1) if

• (a) the person or entity notifies the Bank of its acceptance of the offer within the period set out in paragraph 11(2)(c); or

• (b) the person or entity does not notify the Bank of its acceptance of, or objection to, the offer within that period.

Marginal note:Appointment of assessor

14 An assessor must be appointed under section 11.28 of the Act if the person or entity notifies the Bank that it objects to the offer, or the absence of an offer, within the period set out in paragraph 11(2)(c).

Marginal note:Notice of appointment

15 Within 45 days after the day on which an assessor is appointed, the Bank must provide, to each person and entity whose compensation is to be determined by the assessor, a notice of the appointment that states that the person or entity is bound by the assessor’s determination of the amount of compensation to be paid which may be lower or higher than that contained in the offer.

Marginal note:Assessor’s determination

16 The assessor must determine the amount of compensation to be paid in accordance with sections 7 to 10.

Marginal note:Assessor’s notice

• 17 (1) The assessor must provide, to every prescribed person or entity whose compensation is determined by the assessor, a notice

  • (a) setting out the assessor’s determination of the amount of compensation to which the person or entity is entitled;

  • (b) stating that the person or entity is bound by the assessor’s determination as to the amount of compensation to be paid; and

  • (c) stating that the Bank must pay the compensation within 90 days after the date of the notice.

• Marginal note:Copy to Bank

  (2) The assessor must provide a copy of each notice to the Bank.

Marginal note:Payment of compensation

18 The Bank must pay a prescribed person or entity the compensation that it is entitled to receive within

• (a) if a notice referred to in subsection 17(1) is provided to the person or entity, 90 days after the date of that notice; or

• (b) in any other case, 135 days after the day on which a summary of the notice given under subsection 11(1) is published in the Canada Gazette.

Marginal note:Oversight information

19 For the purposes of section 2 of the Act, oversight information means any information contained in the following documents:

• (a) directives issued by the Governor of the Bank under subsection 6(1) or (2) of the Act to a clearing house or a participant and any correspondence to or from the directors or officers of the clearing house or the participant that is related to the directive;

• (b) reports prepared by or at the request of the Bank, including any written recommendations prepared by the Bank, as a result of an audit, inspection or other oversight review of a clearing and settlement system;

• (c) any correspondence to or from the directors or officers of a clearing house that is related to a report or recommendation referred to in paragraph (b);

• (d) resolution plans referred to in subsection 11.05(1) of the Act;

• (e) documents that are prepared by or at the request of the Bank for the purpose of advising the Governor of the Bank on whether to make a declaration of non-viability under section 11.06 of the Act.

Marginal note:Disclosure to affiliates

20 A clearing house may disclose oversight information in respect of its clearing and settlement system to its affiliates, its directors, officers, employees, auditors, securities underwriters and legal advisors and those of its affiliates, if the clearing house ensures that the information remains confidential.

Marginal note:Disclosure to government or regulatory body

21 A clearing house may disclose oversight information in respect of its clearing and settlement system to any government authority or regulatory body that

• (a) regulates the system; and

• (b) has entered into an agreement or arrangement with the Bank under section 13.3 of the Act in respect of the system and oversight information.

Marginal note:Coming into force

Footnote ^*22 These Regulations come into force on the first day on which both sections 237 and 242 of the Budget Implementation Act, 2018, No. 1, chapter 12 of the Statutes of Canada, 2018, come into force, but if they are registered after that day, they come into force on the day on which they are registered.

• Return to footnote ^*[Note: Regulations in force June 25, 2019.]