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Governor’s review

Publication date: June 17, 2024

This supervisory policy describes the Bank of Canada’s Governor’s review process and outlines what individuals, entities and payment service providers should expect if they request a Governor’s review of a retail payments supervision decision.

For terminology about retail payment supervision, refer to the glossary.

Introduction

Under the Retail Payment Activities Act (RPAA) and the Retail Payment Activities Regulations (RPAR), including registration, risk monitoring and enforcement. The RPAA, the Bank of Canada is responsible for supervising retail payment activities. The Bank's supervisory activities include registration, risk monitoring and enforcement. In conducting retail payments supervision (RPS), Bank staff may make decisions related to registration or enforcement. These decisions may be issued to an affected party—an individual, entity or payment service provider (PSP). If the affected party does not agree with the RPS decision, they may request an independent review by the Governor of the Bank of Canada. The four types of decisions subject to a Governor’s review are:

  • notice of refusal to register
  • notice of intent to revoke registration
  • notice of violation (NOV), including any administrative monetary penalty (AMP)
  • notice of default
The review process for compliance orders issued under the RPAA is distinct from the Governor’s review process and is outlined in the Bank’s supervisory policy on enforcement tools.

Purpose of a Governor’s review

The main purpose of a Governor’s review is to provide affected parties an opportunity for an independent review of an RPS decision issued against them. The Governor’s review is conducted in accordance with the principles of procedural fairness, including:

  • the right to know the case
  • the right to be heard
  • the right to an impartial and independent decision-maker
  • the right to be given the reason(s) for a decision

Governor’s review function

The Governor may delegate to an officer of the Bank any of the Governor’s powers, duties or functions under the RPAA. The Governor’s review functions were delegated to the Executive Director of Payments, Supervision and Oversight through a notice of delegation published in the Canada Gazette on June 15, 2024. If the Executive Director is absent, unable to conduct the review or if the position of Executive Director is vacant, an alternate delegate will conduct the review. Further details on the delegation of the Governor’s powers, duties and functions are outlined in the notice of delegation published in the Canada Gazette.

Staff who are independent from RPS supervisory activities support the Governor’s delegate and assist with the decision-making process as part of the Governor’s review function. This function is also supported by independent legal and communications staff from the Bank.

The Governor’s review function, including the Governor’s delegate and the alternate delegate, are independent from supervisory activities of RPS, such as registration, risk monitoring and enforcement. These supervisory activities are overseen by the Managing Director of Supervision. The Bank maintains an internal separation between the adjudicative functions of the Governor’s review and the broader supervisory activities of RPS. The separation between the Governor’s review function and the broader supervisory activities of RPS ensures the Executive Director and Governor’s review staff have had no prior involvement or received any communication in relation to a RPS decision that could lead to a Governor’s review.

Submitting a request for Governor’s review

Who can submit a request

The affected party, or a representative who is authorized to act on behalf of the affected party, may submit a request.

An affected party will not be eligible for a Governor’s review of any violations outlined in an NOV if they have paid the full AMP associated with those violations. However, an affected party can still request a review of other violations within the same NOV if they have not paid the full AMP associated with those remaining violations.  

How to submit a request

All forms related to a request for Governor’s review should be completed within PSP Connect, the IT solution that acts as the main communication interface between the Bank and supervised PSPs. Requests may be submitted in either official language (English or French).

If the affected party does not have access to PSP Connect or requires assistance in submitting a request for a Governor’s review, they should . All special accommodation requests will be considered on a case-by-case basis.

To request special accommodations related to a Governor’s review, download the form.

Required information and additional submissions

The affected party should include the following information in their submission in PSP Connect:

  • the original RPS decision (including the external findings report, if applicable)
  • a description of what aspects of the RPS decision they are contesting and the reasons for the request
  • all documentary evidence supporting their position
  • any other relevant information

When to submit a request

Affected parties must submit their request within 30 days after the day they are served with or notified of an RPS decision.

If an affected party is subject to exceptional circumstances and cannot submit their review request in that time frame, the Governor’s review function may consider extending the 30-day period. In these cases, the affected party should submit an extension request in PSP Connect within 15 days of being served with or notified of the RPS decision and include the reasons for the request. The Governor’s review function will review the request, decide whether an extension is granted and inform the affected party.

To request an extension for a review outside of PSP Connect, download the form.

If the affected party wants to make additional submissions beyond the 30-day or extended deadline, they can submit a request in PSP Connect. In the request, they must:

  • outline the information they want to submit
  • include the reasons for the additional submissions
  • provide any additional relevant information

The Governor’s review function will consider the request and issue a decision to the affected party. The Governor’s review function may deny the request for any reason, including if the reasons for additional submissions are not considered valid or if the Governor’s delegate will not have sufficient time to consider the additional submissions before issuing the Governor’s decision.  

An affected party will not be eligible for a Governor’s review if they submit their request for a review after the 30-day deadline (or the extended deadline granted by the Governor’s review function).

To request permission to make additional submissions outside of PSP Connect, download the form.

What to expect

Conflict-of-interest check

Governor’s review staff and the Governor’s delegate will complete a conflict-of-interest check before conducting a review. If a real, potential or perceived conflict of interest is identified, or circumstances that could leave to a reasonable apprehension of bias, the Governor’s review function will work with the Bank’s Compliance and Ethics Office to address the conflict or to reassign the file to another staff member or alternative Governor’s delegate, as applicable. The conflict-of-interest check helps ensure that affected parties receive an independent and impartial review of the RPS decision.

Information Request

In reviewing an affected party’s submissions, the Governor’s review function may require additional information or clarification from the affected party or from Bank staff who issued the original RPS decision. In this situation, the Governor’s review function will send an information request to the affected party or Bank staff, as applicable, through the PSP Connect portal, and will notify the other party and provide the other party with access to the request. If the affected party or Bank staff respond to the information request, the other party will receive a notification and access to the response. This ensures full transparency in the information request process and provides the opportunity for the other party to address the response.

All information requests and responses will be sent through PSP Connect, unless the affected party received special accommodations for submissions outside of the portal.   

Making, notifying, and serving a Governor’s decision

The Governor’s delegate will review the information, determine facts, conduct an independent analysis and issue a decision. The decision will either confirm the RPS decision, direct RPS staff to take a certain action, or make an independent finding. The decision is made de novo, meaning that the Governor’s delegate decides the issues afresh based on the material submitted, and is not confined to reviewing the RPS decision for errors. The Governor’s decision will contain written reasons that explain why the delegate came to the decision and that help the affected party understand the decision.

The Governor’s review function will notify and serve the affected party with the Governor’s decision, either through PSP Connect or through alternative means if the affected party received special accommodations for submissions outside the portal.

Public notice of Governor’s decisions

The Bank will provide public notice of Governor’s decisions issued by the Governor’s delegate.

For decisions related to registration (i.e., those that involve a notice of refusal to register or a notice of intent to revoke registration), the Bank will not publish the entire Governor’s decision but will reflect the grounds for the decision in the Bank’s list of refusals and revocations.

For decisions related to enforcement (i.e., those that involve a NOV or a notice of default), the Bank will publish the entire Governor’s decision if the decision confirms the original RPS decision or finds that a PSP committed a violation.

Before publishing a Governor’s decision related to an NOV or notice of default, the Governor’s review function will provide the PSP with an opportunity to request redactions to the published decision. Redaction requests may be granted on a case-by-case basis if the decision contains sensitive, personal or confidential business information.

Appealing a Governor’s decision

Affected parties can appeal a Governor’s decision to the Federal Court if they do not agree with the decision. They must exercise this right within 30 days after the day on which they are notified of or served with a Governor’s decision (or within a longer period that the Federal Court allows).

In addition, if the Governor’s delegate fails to issue a decision within 90 days after the day on which an affected party submits their request for a review for an NOV or notice of default, the affected party has a right of appeal to the Federal Court within 30 days after the day on which the 90-day period expires.

The Bank has established an optional method for accepting service of originating documents in an appeal of a Governor’s decision to the Federal Court. If an affected party wants to appeal a Governor’s decision under the RPAA, they can choose to serve the Bank with a Notice of Appeal of a Governor’s decision by . Affected parties, who use this optional method of service to serve a Notice of Appeal to the Bank can expect to receive an email response within two business days of serving the Bank with a properly executed Notice of Appeal.  

Contact

For inquires related to the Governor’s review process, contact .

For more information related to the appeals process, affected parties should contact the Federal Court.

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