This framework is designed to allow Canadians and small businesses to securely share their financial data with approved service providers, offering access to innovative tools that improve financial outcomes while ensuring safety, transparency, and national security.
1. Objectives:
Safety and security: replacing risky practices like screen-scraping with secure data-sharing methods.
Consumer empowerment: enabling Canadians to access innovative financial tools like credit-building apps and budgeting platforms without incurring fees.
Economic growth: fostering innovation and competition within a secure and competitive financial ecosystem.
2. Legislation and governance:
The Consumer-Driven Banking Act was enacted in June 2024, establishing foundational elements like technical standards and scope.
The Financial Consumer Agency of Canada (FCAC) is the lead regulatory body, with expanded responsibilities and a newly created role, the Senior Deputy Commissioner of Consumer-Driven Banking, to oversee the framework.
A cost-recovery model and collaboration with provincial regulators ensure consistent oversight and flexibility for jurisdictional governance.
3. Core framework elements:
Accreditation: ensuring only trusted entities can access consumer financial data through strict eligibility criteria.
Privacy and security: mandating robust consent management systems, user-friendly consent dashboards, and stringent security certifications.
Common rules: addressing privacy, liability, and market conduct standards to build consumer confidence.
Technical standards: transitioning to a unified API-based system for secure, standardised data sharing.
4. Implementation and scope:
A phased approach will initially mandate participation from large banks, with voluntary participation options for smaller institutions and credit unions.
The scope will initially cover data from chequing, savings, investment, and lending accounts, with potential future expansions.
Screen-scraping will be prohibited once the framework is fully operational, aiming for an early 2026 launch.
5. Liability framework:
Liability for data breaches or misuse rests with the party at fault.
Consumers will not bear financial losses resulting from participation in the framework.
6. National security:
Safeguards ensure compliance with national security protocols, empowering the Minister of Finance to intervene when necessary to protect Canada’s financial system.
The Canadian government will introduce legislation to finalise accreditation, common rules, and other elements of the framework. Public consultations will follow as the Department of Finance Canada develops supporting regulations. The FCAC will lead consumer education initiatives and engage with industry stakeholders to ensure a smooth implementation.
This landmark initiative underscores Canada's commitment to fostering a secure, consumer-centric financial ecosystem that balances innovation with safety, according to the official announcement.
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