Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

This Web page has been archived on the Web.

An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)

Assented to 2007-03-29

277. Subsection 596(1) of the Act is replaced by the following:

Marginal note:Regulations

  • 596. (1) The Governor in Council may make regulations limiting the extent to which foreign companies may cause themselves to be reinsured against risks undertaken under their policies.

278. Subsection 597(1) of the Act is replaced by the following:

Marginal note:Restriction re related parties

  • 597. (1) Except with the approval of the Superintendent, a foreign company may cause itself to be reinsured, in respect of risks undertaken under its policies, by a related party of the foreign company only if the related party is

    • (a) a company; or

    • (b) a foreign company that, in Canada, reinsures those risks.

279. Section 602 of the Act is replaced by the following:

Marginal note:Disclosing borrowing costs — advances

602. If regulations have been made respecting the manner in which the cost of borrowing is to be disclosed in respect of an advance on the security or against the cash surrender value of a policy, a foreign company shall not make such an advance unless the cost of borrowing, as calculated and expressed in accordance with the regulations, has, in the prescribed manner, been disclosed by the foreign company or otherwise as prescribed to the policyholder at or before the time when the advance is made.

Marginal note:2001, c. 9, s. 444(1)

  • 280. (1) Subsection 604(1) of the Act is replaced by the following:

    Marginal note:Procedures for dealing with complaints

    • 604. (1) A foreign company shall

      • (a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from the foreign company;

      • (b) designate one of its officers or employees in Canada, or an agent in Canada, to be responsible for implementing those procedures; and

      • (c) designate one or more of its officers or employees in Canada, or agents in Canada, to receive and deal with those complaints.

  • (2) Section 604 of the Act is amended by adding the following after subsection (2):

    • Marginal note:How procedures to be made available

      (3) A foreign company shall make its procedures established under paragraph (1)(a) available

      • (a) on its websites through which products or services are offered in Canada; and

      • (b) in written format to be sent to any person who requests them.

    • Marginal note:Information on contacting Agency

      (4) A foreign company shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3).

Marginal note:2001, c. 9, s. 444(1)

281. Section 604.1 of the Act is replaced by the following:

Marginal note:Obligation to be member of complaints body

604.1 In any province, if there is no law of the province that makes a foreign company subject to the jurisdiction of an organization that deals with complaints made by persons having requested or received products or services in the province from a foreign company, the foreign company shall be a member of an organization in Canada that is not controlled by it and that deals with those complaints that have not been resolved to the satisfaction of the persons under procedures established under paragraph 604(1)(a).

Marginal note:2001, c. 9, s. 444(1)

282. Subsection 605(1) of the Act is replaced by the following:

Marginal note:Information on contacting Agency

  • 605. (1) A foreign company shall, in the prescribed manner, provide a person in Canada requesting or receiving a product or service in Canada from it with prescribed information on how to contact the Agency if the person has a complaint about an arrangement referred to in subsection 601(3), a payment, credit or charge card referred to in subsection 601(2), the disclosure of or manner of calculating the cost of borrowing in respect of a loan repayable in Canada or an advance on the security or against the cash surrender value of a policy, or about any other obligation of the foreign company under a consumer provision.

Marginal note:2001, c. 9, s. 445

283. Subparagraph 607.1(a)(iv) of the Act is replaced by the following:

  • (iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public;

284. The Act is amended by adding the following after section 607.1:

Marginal note:Provisions that do not apply

  • 607.2 (1) Sections 598 to 607.1 do not apply in respect of a foreign company if

    • (a) the order made under subsection 574(1) in respect of the foreign company restricts it to the reinsurance of risks within a class of insurance specified in the order;

    • (b) the foreign company has provided the Commissioner with a declaration stating that it is not dealing with a prescribed group of consumers; and

    • (c) after providing the declaration, the foreign company continues to not deal with that prescribed group.

  • Marginal note:Notice if action taken that causes provisions to apply

    (2) The foreign company must give notice to the Commissioner if it subsequently deals with the prescribed group referred to in the declaration.

285. The heading before section 608 of the Act is replaced by the following:

Adequacy of Assets
Marginal note:2001, c. 9, s. 446

  • 286. (1) Subsection 608(1) of the Act is replaced by the following:

    Marginal note:Adequacy of assets and appropriate forms of liquidity

    • 608. (1) A foreign company shall maintain in Canada an adequate margin of assets over liabilities in respect of its insurance business in Canada as shown in the records it is required to maintain under section 647, and adequate and appropriate forms of liquidity, and shall comply with any regulations in relation to an adequate margin of assets over liabilities and adequate and appropriate forms of liquidity.

  • Marginal note:2001, c. 9, s. 446

    (2) Subsection 608(4) of the Act is replaced by the following:

    • Marginal note:Directives

      (4) Even though a foreign company is complying with regulations made under paragraph 610(1)(a) or guidelines made under subsection (3), the Superintendent may, by order, direct the foreign company to increase the margin of its assets over its liabilities that it is required to maintain in Canada or to provide additional liquidity in the forms and the amounts that the Superintendent requires.

  • 287. (1) Subsection 609(1) of the Act is replaced by the following:

    Marginal note:Adequacy of assets

    • 609. (1) A foreign company shall, in relation to each class of insurance risks that it is permitted to insure, maintain in Canada, in accordance with the regulations, assets the total value of which shall be determined in accordance with the regulations.

  • Marginal note:1996, c. 6, s. 88

    (2) Subsection 609(2) of the Act is replaced by the following:

    • Marginal note:Directives

      (2) Even though a foreign company is complying with regulations made under paragraph 610(1)(b) or guidelines made under subsection (1.1), the Superintendent may, by order, direct the foreign company to increase the assets that it is required to maintain in Canada.

288. The heading before section 610 of the Act is repealed.

289. The heading before section 611 of the Act is repealed.

  • 290. (1) Paragraph 612(1)(d) of the Act is replaced by the following:

    • (d) a loan made in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan.

  • Marginal note:1997, c. 15, s. 315

    (2) Subsection 612(2) of the Act is replaced by the following:

    • Marginal note:Exception

      (2) Despite paragraphs (1)(a) and (c), a foreign company may vest in trust a substantial investment in an entity that is primarily engaged in

      • (a) holding, managing or otherwise dealing with real property; or

      • (b) holding shares or ownership interests in entities that are primarily engaged in any of the activities referred to in paragraph (a).

291. Section 614 of the Act is replaced by the following:

Marginal note:Non-application

  • 614. (1) Sections 612 and 615 to 620 do not apply in respect of assets of a foreign company held in relation to a segregated fund maintained pursuant to section 593.

  • Marginal note:Exclusion of liabilities of segregated funds

    (2) A reference in sections 615 to 619 and in regulations made under section 620 to the assets in Canada or the liabilities in Canada of a foreign company does not include liabilities of the foreign company for the policies and amounts in respect of which a segregated fund is maintained pursuant to section 593.

Table of Contents

 

Date modified: