Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)
Full Document:
Assented to 2001-06-14
Marginal note:1997, c. 15, s. 2; 1999, c. 28, s. 9
44. Section 21 of the Act is replaced by the following:
Marginal note:Sunset provision
21. (1) Subject to subsection (2), banks shall not carry on business and authorized foreign banks shall not carry on business in Canada after the day that is five years after this section comes into force, except that, if Parliament dissolves on that day or at any time within the three-month period before that day, banks may continue to carry on business, and authorized foreign banks may continue to carry on business in Canada, respectively, until the day that is one hundred and eighty days after the first day of the first session of the next Parliament.
Marginal note:Extension
(2) The Governor in Council may, by order, extend by up to six months the time during which banks may continue to carry on business and authorized foreign banks may continue to carry on business in Canada. No more than one order may be made under this subsection.
45. Paragraph 23(d) of the Act is replaced by the following:
(d) an entity that is controlled by the government of a foreign country or any political subdivision thereof, other than an entity that is a foreign bank, a foreign institution or a subsidiary of a foreign bank or foreign institution.
Marginal note:1999, c. 28, s. 10
46. Section 24 of the Act is replaced by the following:
Marginal note:Subsidiary of foreign bank
24. If a proposed bank would be a subsidiary of a foreign bank, within the meaning of paragraphs (a) to (f) of the definition “foreign bank” in section 2, and the application for letters patent to incorporate the bank is made by a non-WTO Member foreign bank, letters patent to incorporate the bank may not be issued unless the Minister is satisfied that treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the foreign bank principally carries on business, either directly or through a subsidiary.
47. Section 27 of the Act is replaced by the following:
Marginal note:Matters for consideration
27. Before issuing letters patent to incorporate a bank, the Minister shall take into account all matters that the Minister considers relevant to the application, including
(a) the nature and sufficiency of the financial resources of the applicant or applicants as a source of continuing financial support for the bank;
(b) the soundness and feasibility of the plans of the applicant or applicants for the future conduct and development of the business of the bank;
(c) the business record and experience of the applicant or applicants;
(d) the character and integrity of the applicant or applicants or, if the applicant or any of the applicants is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good character and integrity;
(e) whether the bank will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
(f) the impact of any integration of the businesses and operations of the applicant or applicants with those of the bank on the conduct of those businesses and operations;
(g) the opinion of the Superintendent regarding the extent to which the proposed corporate structure of the applicant or applicants and their affiliates may affect the supervision and regulation of the bank, having regard to
(i) the nature and extent of the proposed financial services activities to be carried out by the bank and its affiliates, and
(ii) the nature and degree of supervision and regulation applying to the proposed financial services activities to be carried out by the affiliates of the bank; and
(h) the best interests of the financial system in Canada.
Marginal note:1991, c. 47, s. 756(2)
48. (1) Subsection 29(1) of the Act is replaced by the following:
Marginal note:Letters patent of incorporation on application of certain companies
29. (1) If the Minister issues letters patent, under section 22, incorporating a bank on the application of a company to which the Trust and Loan Companies Act or the Insurance Companies Act applies and the paid-in capital of the bank immediately following its incorporation will be not less than five million dollars or any greater amount that the Minister may specify under subsection 46(1), there may, on the request of the company and with the approval of the Minister, be included in the letters patent a provision deeming shares of the bank to be issued, on a share for share basis, to all shareholders of the company in exchange for all the issued and outstanding shares of the company.
(2) Subsection 29(9) of the Act is repealed.
Marginal note:1994, c. 24, par. 34(1)(b)(F)
49. Subsection 33(1) of the Act is replaced by the following:
Marginal note:Federal corporations
33. (1) A body corporate incorporated under the Canada Business Corporations Actor any other Act of Parliament, including a bank holding company, may apply to the Minister for letters patent continuing the body corporate as a bank under this Act.
Marginal note:1997, c. 15, s. 4; 1999, c. 28, s. 11
50. Sections 39.1 and 39.2 of the Act are replaced by the following:
Marginal note:This Act ceases to apply
39.1 If section 39.2 or 402.1 applies in respect of a bank, on the day specified in the letters patent continuing the bank as a company under subsection 33(1) or 234(1) of the Trust and Loan Companies Act, this Act ceases to apply to the bank and that Act applies to the company so continued under that Act.
Marginal note:Other transfer
39.2 A bank may apply for letters patent continuing the bank as a company under subsection 33(1) of the Trust and Loan Companies Act or amalgamating and continuing the bank as a company under section 228 and subsection 234(1) of that Act.
Marginal note:1999, c. 28, s. 12
51. Paragraph 40(e) of the Act is replaced by the following:
(e) that is reserved under section 43 for another bank or an authorized foreign bank or a proposed bank or a proposed authorized foreign bank or under section 697 for a bank holding company or a proposed bank holding company.
Marginal note:1996, c. 6, s. 1
52. Section 41 of the Act is replaced by the following:
Marginal note:Affiliated bank
41. Despite section 40, a bank that is affiliated with another entity may, with the consent of that entity and the approval of the Superintendent, be incorporated with, or change its name to, substantially the same name as that of the affiliated entity.
Marginal note:1996, c. 6, s. 3
53. Subsection 44(2) of the Act is replaced by the following:
Marginal note:Revoking name
(2) If a bank has been directed under subsection (1) to change its name and has not, within sixty days after the service of the direction, changed its name to a name that is not prohibited by this Act, the Superintendent may revoke the name of the bank and assign to it a name and, until changed in accordance with section 215 or 217, the name of the bank is thereafter the name so assigned.
54. Subsection 46(1) of the Act is replaced by the following:
Marginal note:Calling shareholders’ meeting
46. (1) If at least five million dollars, or any greater amount that the Minister may specify, has been received by a bank in respect of which letters patent were issued under section 22 from the issue of its shares, the directors of the bank shall without delay call a meeting of the shareholders of the bank.
55. Subsection 48(2) of the Act is replaced by the following:
Marginal note:Deeming
(2) If, on the day this subsection comes into force, an order approving the commencement and carrying on of business by a bank named in Schedule I or II as those Schedules read immediately before that day, has not been made, such an order is deemed to have been made in respect of the bank on that day.
56. Paragraph 52(1)(b) of the Act is replaced by the following:
(b) the bank has paid-in capital of at least five million dollars or any greater amount that is specified by the Minister under subsection 46(1);
57. The Act is amended by adding the following after section 54:
Marginal note:Limit on assets
54.1 (1) The Minister may, by order, require a bank not to have average total assets in any three month period ending on the last day of a month subsequent to the month specified in the order exceeding the bank’s average total assets in the three month period ending on the last day of the month immediately before the month specified in the order if the Minister is of the opinion that it is in the best interests of the financial system in Canada to do so, after having considered the Superintendent’s opinion on
(a) the nature and extent of the financial services activities carried out by entities affiliated with the bank; and
(b) the impact that the nature and degree of supervision and regulation of those financial services activities have on the supervision and regulation of the bank.
Marginal note:Revocation of order
(2) If the Minister is of the opinion that the circumstances giving rise to the order have ceased to exist or have changed substantially, the Minister may, by further order, revoke the order.
Marginal note:Average total assets
(3) For the purposes of subsection (1), the average total assets of a bank in a three month period shall be computed by adding the total assets of the bank as calculated for the month end of each of the three months in the period and by dividing the sum by three.
Definition of “total assets”
(4) For the purposes of subsections (1) and (3), “total assets”, in respect of a bank, has the meaning given that expression by the regulations.
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