OTTOWA, Canada—Even as open banking continues to grow around the world, Canada’s federal government is expected to table a second bill on open banking after the 2024 fall economic statement.
Expanding on the budget implementation bill, Bill C-69, the new bill would introduce substantive elements of the open banking framework, such as details on accreditation for participating entities, said Julien Brazeau, associate assistant deputy minister of finance, at a recent event in Toronto, Advisor.ca reported.
“Certainly, our hope was to be fast followers,” Brazeau said. “We’ve now been surpassed by Rwanda and other countries, so I don’t think we can use ‘fast’ as a moniker.”
Brazeau said the government is studying models in other jurisdictions, such as the U.K., European Union and Australia, as it develops its own framework.
Scope Outlined
Bill C-69, which completed its first reading on May 2, outlines the scope of data included in open banking and proposes to appoint the Financial Consumer Agency of Canada (FCAC) to oversee the framework. It also proposes to introduce a new senior deputy commissioner at the FCAC that will deal with all matters related to the open banking system, Advisor.ca said.
The second bill would include details on how institutions can become accredited to participate in the system and the legal liabilities of participating entities, Brazeau reported.
The CFPB is also pushing forward with its plans to expand open banking in the United States.
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