Safeguarding Policy

How Brisk Pay approaches the protection and safeguarding of customer funds.

Brisk Pay recognizes that the protection of customer funds is fundamental to providing payment and financial services responsibly.

Brisk Pay is not a bank. Certain services available through the Brisk Pay platform may be provided with the support of regulated third-party financial institutions and payment service partners.

This Policy explains generally how customer funds are handled and how applicable safeguarding requirements may apply.

1. How Customer Funds Are Held

Where customer funds are received or held in connection with Brisk Pay services, they may be held through third-party financial institutions or regulated payment service providers involved in providing the relevant service.

As described in our Terms and Conditions, Brisk Pay may rely on third-party service partners for services including payment processing, wallets, settlement and the holding or transfer of funds.

The precise arrangements applicable to customer funds may depend on:

• The product or service being used

• The financial institution or payment partner involved

• The currency and jurisdiction

• Applicable legal and regulatory requirements
  

Brisk Pay does not represent customer balances as deposits held with Brisk Pay as a bank.

2. Safeguarding Requirements

Where Brisk Pay holds end-user funds and is subject to safeguarding requirements under applicable Canadian payments legislation, those funds must be handled in accordance with those requirements.

Under Canada’s Retail Payment Activities Act (RPAA), a payment service provider that holds end-user funds until they are withdrawn or transferred must use an eligible safeguarding arrangement.

Depending on the arrangement, this may involve:

• Holding end-user funds in trust in a dedicated trust account; or

• Holding the funds in an account used only for safeguarding purposes together with qualifying insurance or a guarantee.
  

The purpose of these requirements is to help protect end-user funds and support reliable access to those funds, including in the event of the payment service provider’s insolvency.

Brisk Pay applies the safeguarding arrangements required for the services and activities to which such requirements apply.

3. Separation and Use of Safeguarded Funds

Where funds are subject to statutory safeguarding requirements, the applicable safeguarding account must be maintained separately from funds used for ordinary corporate purposes.

Canadian safeguarding rules require applicable end-user funds to be segregated from other funds and prohibit safeguarded funds from being used to finance the payment service provider’s ordinary operating expenses.

The exact structure used for a particular service may depend on the relevant financial institution, payment partner and applicable regulatory framework.

4. Safeguarding and Insolvency

Safeguarding is intended to reduce the risk that qualifying end-user funds are treated as ordinary corporate assets if a payment service provider becomes insolvent.

Where statutory safeguarding requirements apply, the safeguarding structure must be designed so that end users can reliably access their funds and, in an insolvency scenario, applicable funds or insurance or guarantee proceeds can be returned as required by law.

However, safeguarding should not be understood as a guarantee that payments can never be delayed, interrupted or affected by the failure of a bank, financial institution, payment network or other third party.

The protections applying to particular funds depend on the legal and contractual structure under which those funds are held.

5. Brisk Pay Is Not a Bank

Brisk Pay is a financial technology and payments provider and is not a bank.

Funds handled through Brisk Pay should therefore not be understood simply as conventional bank deposits held by Brisk Pay.

Brisk Pay’s registration as a Money Services Business with FINTRAC also does not constitute bank authorization, deposit-taking authorization or deposit insurance.

Where a third-party bank or financial institution participates in a federal or provincial deposit-insurance scheme, that fact does not by itself provide the same protection against the insolvency of a payment service provider. The Bank of Canada specifically distinguishes deposit insurance from the safeguarding protections required under the RPAA.

Any deposit-insurance treatment that may apply to funds held through a third-party institution depends on the applicable account structure and the relevant deposit-insurance rules.

6. Controls and Oversight

Where applicable to the services Brisk Pay provides, safeguarding arrangements may include:

• Records identifying customer funds and balances

• Reconciliation and ledger controls

• Controls over access to safeguarding accounts

• Liquidity arrangements designed to support customer withdrawals and transfers

• Review of safeguarding arrangements

• Oversight by responsible personnel

• Review of financial institutions or service providers involved in holding customer funds
  

Canadian regulations require payment service providers subject to the safeguarding provisions to maintain a written safeguarding framework and appropriate records and controls.

Brisk Pay reviews relevant arrangements as necessary to meet applicable legal, regulatory and operational requirements.

7. Third-Party Financial Institutions

Brisk Pay may rely on banks, payment institutions and other regulated service providers to provide elements of its financial services.

The involvement of these providers means that funds may be subject to:

• The provider’s terms and conditions

• Applicable banking or payments regulations

• Settlement arrangements

• Local laws and regulatory requirements

• Operational requirements of payment networks or financial institutions
  

Brisk Pay takes reasonable steps to work with appropriately regulated or authorized providers where required for the services being offered.

Additional information about how information is shared with our service partners is available in our Privacy Policy.

8. More Information

This Policy provides a general explanation of Brisk Pay’s approach to customer funds and safeguarding.

The precise legal and safeguarding arrangements applicable to a particular service may vary depending on the product, financial institution, payment partner, jurisdiction and applicable law.

This Policy should be read together with Brisk Pay’s:

• Terms and Conditions

• Privacy Policy

• Compliance & AML Programme
  

For questions concerning the handling of funds associated with your Brisk Pay account or a particular transaction, please contact:

Brisk Pay
22420 Dewdney Trunk Road, Suite 300
Maple Ridge, BC V2X 3J5
Canada

Email: support@briskpay.ca