Did you know that the Bank of Canada (BoC) has RPAA frequently asked questions (FAQs) that they update on a regular basis? 💡
In a recent newsletter, the BoC featured an FAQ that many of our clients have inquired about and we thought you might be interested in knowing their position:
“Will the Bank develop or pre-approve insurance or guarantee products that meet the requirements of the RPAA and Retail Payments Activities Regulations ❓”
The simple answer is no 🚫
The BoC will not pre-approve designs for potential insurance or guarantee products. The Bank’s role is to supervise PSPs that perform retail payment activities in order to determine whether they comply with the RPAA ✅
This ‘no pre-approval’ stance from The Bank of Canada highlights a core principle of the RPAA’s supervisory framework: the responsibility of compliance is entirely on the PSP.
This reinforces the importance for each PSP to independently conduct thorough due diligence aligning with the RPAA’s risk mitigation objectives. This diligence must ensure safeguarding of end-user funds when choosing a financial protection mechanism, whether that be insurance or guarantee products.
If your business needs help with due diligence or navigating how to choose insurance or guarantee products that are RPAA compliant, our in-house experts can advise. We have worked on volumes of RPAA programs and your business could be next to benefit from our expert support.