Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)

Assented to 2001-06-14

  •  (1) Subsection 402(1) of the Act is replaced by the following:

    Marginal note:Disposition of shareholdings
    • 402. (1) If, with respect to any bank, a person contravenes section 372 or subsection 373(1), 374(1) or 375(1) or section 376.1 or 376.2, subsection 377(1) or section 377.1 or fails to comply with an undertaking referred to in subsection 390(2) or with any terms and conditions imposed under section 397, the Minister may, if the Minister deems it in the public interest to do so, by order, direct that person and any person controlled by that person to dispose of any number of shares of the bank beneficially owned by any of those persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by that person that is specified in the order.

  • Marginal note:1999, c. 28, s. 21

    (2) Subsections 402(3) and (4) of the Act are replaced by the following:

    • Marginal note:Appeal

      (3) Any person with respect to whom a direction has been made under subsection (1) may, within thirty days after the date of the direction, appeal the matter in accordance with section 977.

Marginal note:1997, c. 15, ss. 42(1) and (2)
  •  (1) The portion of subsection 410(1) of the Act before paragraph (d) is replaced by the following:

    Marginal note:Additional activities
    • 410. (1) In addition, a bank may

      • (a) hold, manage and otherwise deal with real property;

      • (b) provide prescribed bank-related data processing services;

      • (c) outside Canada or, with the prior written approval of the Minister, in Canada, engage in any of the following activities, namely,

        • (i) collecting, manipulating and transmitting

          • (A) information that is primarily financial or economic in nature,

          • (B) information that relates to the business of a permitted entity, as defined in subsection 464(1), or

          • (C) any other information that the Minister may, by order, specify,

        • (ii) providing advisory or other services in the design, development or implementation of information management systems,

        • (iii) designing, developing or marketing computer software, and

        • (iv) designing, developing, manufacturing or selling, as an ancillary activity to any activity referred to in any of subparagraphs (i) to (iii) that the bank is engaging in, computer equipment integral to the provision of information services related to the business of financial institutions or to the provision of financial services;

      • (c.1) with the prior written approval of the Minister, develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used

        • (i) to provide information that is primarily financial or economic in nature,

        • (ii) to provide information that relates to the business of a permitted entity, as defined in subsection 464(1), or

        • (iii) for a prescribed purpose or in prescribed circumstances;

      • (c.2) engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services;

  • Marginal note:1997, c. 15, s. 42(3)

    (2) Paragraphs 410(3)(a) and (b) of the Act are replaced by the following:

    • (a) respecting what a bank may or may not do with respect to the carrying on of the activities referred to in paragraphs (1)(c) to (c.2);

    • (b) imposing terms and conditions in respect of

      • (i) the provision of financial services referred to in paragraph 409(2)(a) that are financial planning services,

      • (ii) the provision of services referred to in paragraph 409(2)(c), and

      • (iii) the carrying on of the activities referred to in any of paragraphs (1)(c) to (c.2); and

    • (c) respecting the circumstances in which banks may be exempted from the requirement to obtain the approval of the Minister before carrying on a particular activity referred to in paragraph (1)(c) or (c.1).

 Paragraphs 411(1)(a) and (b) of the Act are replaced by the following:

  • (a) act as agent for any person in respect of the provision of any service that is provided by a financial institution, a permitted entity as defined in subsection 464(1) or a prescribed entity and may enter into an arrangement with any person in respect of the provision of that service; or

  • (b) refer any person to any such financial institution or entity.

Marginal note:1997, c. 15, s. 43

 Subsection 413(2) of the Act is repealed.

Marginal note:1997, c. 15, s. 43
  •  (1) Subsection 413.1(1) of the Act is replaced by the following:

    Marginal note:Notice before opening account
    • 413.1 (1) Before a bank to which paragraph 413(1)(b) applies opens a deposit account in Canada, the bank shall give the person requesting the opening of the account, in the prescribed manner,

      • (a) a notice in writing that the deposit will not be insured by the Canada Deposit Insurance Corporation; and

      • (b) any other information that may be prescribed.

  • Marginal note:1997, c. 15, s. 43

    (2) Subsection 413.1(3) of the Act is replaced by the following:

    • Marginal note:Regulations

      (3) The Governor in Council may make regulations

      • (a) prescribing the manner in which notices referred to in subsection (1) are to be given and the additional information to be contained in the notices; and

      • (b) respecting notices for the purpose of subsection (2).

 The Act is amended by adding the following after section 413.1:

Marginal note:Deposits less than $150,000
  • 413.2 (1) Subject to the regulations, a bank to which paragraph 413(1)(b) applies may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

  • Meaning of “deposit”

    (2) In this section, “deposit” has the meaning assigned to that term by subsection 413(5).

  • Marginal note:Regulations

    (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a bank referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

Marginal note:Shared premises
  • 413.3 (1) Subject to the regulations, no bank to which paragraph 413(1)(b) applies shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank.

  • Marginal note:Limitation

    (2) Subsection (1) only applies in respect of premises or any portion of premises on which both the bank and the member institution carry on business with the public and to which the public has access.

  • Marginal note:Adjacent premises

    (3) Subject to the regulations, no bank to which paragraph 413(1)(b) applies shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank, unless the bank clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.

  • Marginal note:Regulations

    (4) The Governor in Council may make regulations

    • (a) respecting the circumstances in which, and the conditions under which, a bank to which paragraph 413(1)(b) applies may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and

    • (b) respecting the circumstances in which, and the conditions under which, a bank to which paragraph 413(1)(b) applies may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).

  •  (1) The portion of subsection 414(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Restriction on guarantees
    • 414. (1) A bank shall not guarantee on behalf of any person the payment or repayment of any sum of money unless

  • Marginal note:1997, c. 15, s. 44

    (2) Subsection 414(2) of the French version of the Act is replaced by the following:

    • Marginal note:Exception

      (2) Dans les cas où la personne visée au paragraphe (1) est une filiale de la banque garante, celle-ci peut garantir une somme qui n’est pas fixe.

 Section 417 of the Act is replaced by the following:

Marginal note:Restriction on leasing

417. A bank shall not engage in Canada in any personal property leasing activity in which a financial leasing entity, as defined in subsection 464(1), is not permitted to engage.

 Section 419 of the Act is replaced by the following:

Marginal note:Policies re security interests
  • 419. (1) The directors of a bank shall establish and the bank shall adhere to policies regarding the creation of security interests in property of the bank to secure obligations of the bank and the acquisition by the bank of beneficial interests in property that is subject to security interests.

  • Marginal note:Order to amend policies

    (2) The Superintendent may, by order, direct a bank to amend its policies as specified in the order.

  • Marginal note:Compliance

    (3) A bank shall comply with an order made under subsection (2) within the time specified in the order.

Marginal note:Regulations and guidelines

419.1 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by a bank of security interests in its property to secure obligations of the bank and the acquisition by the bank of beneficial interests in property that is subject to security interests.

Marginal note:Exception

419.2 Sections 419 and 419.1 do not apply in respect of a security interest created by a bank to secure an obligation of the bank to the Bank of Canada or the Canada Deposit Insurance Corporation.

 
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