Central bank will be supervising the new consumer-driven banking framework
Ahead of the launch of open banking, the Bank of Canada is starting consultations on its planned approach to supervising participants.
The central bank — which will have responsibility for supervising participants in open banking and setting standards for governance, risk management and operational resilience — issued the first in a series of planned consultations on its proposed supervisory guidelines.
The initial consultations are seeking feedback on the bank’s planned approach to accrediting firms that are seeking to participate in “consumer-driven banking” in Canada — including both third-party service providers and participating entities.
Third-party service providers include firms that are engaged in obtaining or managing consumers’ consent on behalf of participating firms; confirming or managing consumers’ authentication information; and providing or receiving consumer data.
Participating firms include both federal and provincial financial institutions — such as banks, lenders and credit unions — and registered payment service providers.
“The consultation gives stakeholders an opportunity to comment on the clarity, practicality and completeness of the proposed guidance, including implementation considerations and areas where additional detail may be useful,” the bank said.
The deadline for providing feedback is Dec. 8.
Source: investmentexecutive.com
