Budget 2024: Canada’s Consumer-Driven Banking Framework

CDB is included and there is formal policy statement that was released, found attached. Here are the key details:

• Governance: FCAC has been given the mandate to oversee the regime. Legislative amendments to the FCAC Act will also establish a new position, called the Senior Deputy Commissioner of Consumer-Driven Banking at the FCAC, which will be responsible for fulfilling the FCAC’s consumer-driven banking mandate.
• A Single Technical Standard: Legislation will provide authority to the Minister of Finance to identify and revoke a technical standard, and authority to the FCAC to supervise the technical standard body to ensure compliance with the Framework
• Tiered accreditation—the practice of establishing different accreditation requirements for entities, for example, based on the levels of data they are permitted to access—will not be included in an initial phase.
• Privacy: The Framework will include additional privacy rules that are unique to financial data sharing which will address the provision of express consent to access data, consent management, and revoking access to data shared by a consumer.
• National Security and Systemic Integrity: To protect the integrity and security of the Consumer-Driven Banking Framework and maintain Canadians’ confidence in the financial sector, the Framework will include safeguards and provide authorities to the Minister of Finance that align with existing financial sector statutes, such as the Retail Payment Activities Act, the Bank Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The Budget also commits $1 million in 2024-2025 for FCAC to support preparation for its new responsibilities and to begin development of a consumer awareness campaign. The FCAC will transition to a full cost-recovery basis once the framework is in place. Budget 2024 also proposes to provide $4.1 million over three years starting in 2024-25 for the Department of Finance to complete policy work necessary to establish and maintain a consumer-driven banking oversight entity and framework, including the implementation of a national security regime.

Next steps: This spring, the government intends to introduce legislation to establish foundational elements of Canada’s Consumer-Driven Banking Framework, including governance, scope, and criteria and process for the technical standard. The government intends to introduce remaining elements of the Framework in legislation this fall.