Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)
Full Document:
Assented to 2001-06-14
108. Subsection 421(1) of the Act is replaced by the following:
Marginal note:Restriction on partnerships
421. (1) Except with the approval of the Superintendent, a bank may not be a general partner in a limited partnership or a partner in a general partnership.
109. Subsection 422(1) of the Act is repealed.
Marginal note:1999, c. 28, s. 22
110. Section 422.1 of the Act is replaced by the following:
Definition of “non-WTO Member bank subsidiary”
422.1 In section 422.2, “non-WTO Member bank subsidiary” means a bank that is a subsidiary of a foreign bank and that is not controlled by a WTO Member resident.
111. Subsection 437(3) of the Act is replaced by the following:
Marginal note:Execution of trust
(3) A bank is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject.
Marginal note:Payment when bank has notice of trust
(4) Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the bank has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.
112. The heading “Interest and Charges” before section 440 of the Act is repealed.
113. The Act is amended by adding the following before section 440 of the Act:
Marginal note:Definitions
439.1 The following definitions apply in this section and in sections 445 to 448.2, 458.1, 459.2 and 459.4.
“low-fee retail deposit account”
« compte de dépôt de détail à frais modiques »
“low-fee retail deposit account” means a retail deposit account that has the prescribed characteristics.
“member bank”
« banque membre »
“member bank” means a bank that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act.
“personal deposit account”
« compte de dépôt personnel »
“personal deposit account” means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business.
“retail deposit account”
« compte de dépôt de détail »
“retail deposit account” means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed.
114. Subsection 441(2) of the Act is replaced by the following:
Marginal note:Exception
(2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that may be prescribed.
115. Section 444 of the Act is repealed.
Marginal note:1997, c. 15, s. 48
116. (1) The portion of subsection 445(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Disclosure required on opening a deposit account
445. (1) Subject to subsections (2) to (4), a bank shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, the bank provides in writing to the individual who requests the opening of the account
Marginal note:1997, c. 15, s. 48
(2) Subsections 445(2) to (5) of the Act are replaced by the following:
Marginal note:Exception
(2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the bank shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.
Marginal note:Exception
(3) If a bank has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the bank has not complied with subsection (1) in respect of the opening of that other account, the bank shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.
Marginal note:Disclosure in writing
(4) If a bank opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).
Marginal note:Right to close account
(5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.
Marginal note:Regulations
(6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.
117. Section 448 of the Act is replaced by the following:
Marginal note:Application
448. Sections 445 to 447 apply only in respect of charges applicable to deposit accounts with the bank in Canada and services provided by the bank in Canada.
Marginal note:Retail deposit accounts
448.1 (1) Subject to regulations made under subsection (3), a member bank shall, at any prescribed point of service in Canada or any branch in Canada at which it opens retail deposit accounts through a natural person, open a retail deposit account for an individual who meets the prescribed conditions at his or her request made there in person.
Marginal note:No minimum deposit or balance requirements
(2) A member bank shall not require that, in the case of an account opened under subsection (1), the individual make an initial minimum deposit or maintain a minimum balance.
Marginal note:Regulations
(3) The Governor in Council may make regulations
(a) for the purposes of subsection (1), defining “point of service” and prescribing points of service;
(b) respecting circumstances in which subsection (1) does not apply; and
(c) prescribing conditions to be met by an individual for the purposes of subsection (1).
Marginal note:Low-fee retail deposit accounts — regulations
448.2 The Governor in Council may make regulations
(a) requiring a member bank, at any prescribed point of service in Canada or any branch referred to in subsection 448.1(1), to open a low-fee retail deposit account for an individual who meets the prescribed conditions at his or her request made there in person;
(b) for the purposes of paragraph (a), defining “point of service” and prescribing points of service;
(c) prescribing the characteristics, including the name, of a low-fee retail deposit account;
(d) respecting circumstances in which a regulation made under paragraph (a) does not apply; and
(e) prescribing conditions to be met by an individual for the purposes of paragraph (a).
118. Section 449 of the Act, as enacted by section 49 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, is replaced by the following:
Definition of “cost of borrowing”
449. For the purposes of this section and sections 449.1 to 456, “cost of borrowing” means, in respect of a loan made by a bank,
(a) the interest or discount applicable to the loan;
(b) any amount charged in connection with the loan that is payable by the borrower to the bank; and
(c) any charge prescribed to be included in the cost of borrowing.
For those purposes, however, “cost of borrowing” does not include any charge prescribed to be excluded from the cost of borrowing.
119. The Act is amended by adding the following before section 455:
Complaints
120. (1) Paragraph 455(1)(a) of the Act is replaced by the following:
(a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from a bank;
(2) If this section comes into force before paragraph 455(1)(a) of the Act, as enacted by section 52 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, comes into force, then section 52 of that Act is repealed.
(3) Subsection 455(2) of the Act is replaced by the following:
Marginal note:Procedures to be filed with Commissioner
(2) A bank shall file with the Commissioner a copy of its procedures established under paragraph (1)(a).
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