The Federal Department of Finance recognizes that the current regulatory framework for payment service providers is focused narrowly on institutions like banks and payment card networks. As new payment options, provided by non-traditional market participants, continues to grow, so too do the number of market participants that fall outside the existing regulatory framework.
To address the oversight gap, the Federal Department of Finance is currently exploring options to expand its regulatory oversight framework based on a functional approach. A broadened focus will most importantly benefit and serve the interests of end-users.
Telpay is involved with the Federal Department of Finance’s oversight framework project and is a participating member of the department’s consultative committee, FinPay, which met in April in Ottawa to discuss industry oversight.
For several decades Telpay has been a leader in applying its own oversight framework to its business. This includes:
- All customer funds are held in legally separate trust accounts
- All trust accounts are reconciled and reviewed daily
- Our trust account assets are held at CDIC insured Canadian financial institutions
- Our external auditor, BDO, monitors our trust operations, bank accounts, our control environment, and systems. BDO reports their findings to our Board and publicly through our annual Trust Report.
- Telpay maintains a strong cash and short-term investment position
- We maintain a $10,000,000 fidelity bond and other operating insurance policies
- Telpay performs criminal record and credit checks on all staff and directors
TelPay will continue to provide input to the Federal Department of Finance on this topic and other issues affecting the Canadian Payments industry. We always appreciate your input on this or any other payment related topic.