The Bank of Canada has released a new supervisory policy under the Retail Payment Activities Act (RPAA), detailing when it can refuse or revoke registration for Payment Service Providers (PSPs). The policy also signals that supervision fees will be introduced soon. Here’s what fintechs, PSPs, and compliance leaders need to know.Read the full policy here: https://www.bankofcanada.ca/2025/08/refusal-or-revocation-of-registration-under-the-rpaa
Key Highlights of the Policy
1. When Can Registration Be Refused?
- Not within RPAA scope: If an applicant does not meet PSP criteria under RPAA, the Bank will refuse registration.
- Other refusal grounds: False/misleading information, lack of responsiveness, or any grounds listed in Annex 1.
- Ministerial directive: If the Minister of Finance directs refusal (e.g., for national security concerns), the Bank must comply.
2. When Can Registration Be Revoked?
- Out of RPAA scope: If a PSP no longer falls under RPAA due to operational changes.
- Other revocation grounds: Violations of RPAA, false information, or other issues listed in Annex 2.
- Minister-led revocation: The Minister can compel revocation in cases such as national security risks.
3. Communication & Review Process
- Refusal: Applicants receive a notice of refusal and have 30 days to request a review; the Bank must decide within 90 days.
- Revocation: The Bank issues a notice of intent to revoke with the same 30-/90-day review window.
- Minister review: Reviews tied to Ministerial directives are handled by the Ministry.
4. Public Disclosure
Once decisions are final, the Bank will publish lists of refused applicants and revoked PSPs, including reasons.
5. Re-Registration
Entities that were refused or revoked can reapply once they address the original concerns.
6. Supervision Costs & Fees
- The Bank confirmed it will begin charging supervision fees to PSPs to recover regulatory costs.
- These fees will come into effect once the cost-recovery formula and regulations are finalized.
Why This News Matters for Fintech & PSPs
- Clarity: Clear refusal and revocation grounds increase regulatory transparency.
- Accountability: Public disclosure and re-registration rules add fairness to the process.
- Compliance costs: PSPs should plan for supervisory fee obligations once regulations are finalized.
- National security: Ministerial oversight ensures that critical risks are addressed
If your firm is preparing for RPAA registration, this is the time to review compliance readiness—and to start budgeting for supervision fees. Staying proactive will be key to avoiding setbacks under the new framework.