Bank Act (S.C. 1991, c. 46)

Act current to 2013-04-29 and last amended on 2013-03-13. Previous Versions

Marginal note:Prohibited activities — non-bank affiliates

  • 519. (1) Despite subsections 510(4) and (5), a non-bank affiliate of a foreign bank shall not, in Canada,

    • (a) engage in the business of accepting deposit liabilities;

    • (b) engage in the business of acting as an agent for the acceptance of deposit liabilities for a foreign bank or an entity associated with a foreign bank, other than for

      • (i) an authorized foreign bank,

      • (ii) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society, or

      • (iii) an entity referred to in any of paragraphs 468(1)(a), (c), (d) and (h) or a trust or loan corporation referred to in paragraph 468(1)(g); or

    • (c) represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to a non-bank affiliate that is

    • (a) a trust or loan corporation incorporated by or under an Act of Parliament or of the legislature of a province;

    • (b) a Canadian entity referred to in paragraph 468(1)(d) or (h); or

    • (c) a prescribed entity.

  • 1991, c. 46, s. 519;
  • 1997, c. 15, s. 83;
  • 1999, c. 28, s. 31;
  • 2001, c. 9, s. 132;
  • 2007, c. 6, s. 56.
Previous Version
Marginal note:Borrowing from the public — non-bank affiliates

  • 519.1 (1) A non-bank affiliate of a foreign bank that carries on as part of its business the provision of financial services may borrow money in Canada from the public only if it discloses that

    • (a) it is not a member institution of the Canada Deposit Insurance Corporation;

    • (b) the liability incurred by it through the borrowing is not a deposit; and

    • (c) it is not regulated as a financial institution in Canada.

  • Marginal note:Manner of disclosure

    (2) The disclosure must be

    • (a) in a prospectus, information circular or other offering document or a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or

    • (b) in any other manner that may be prescribed.

  • Marginal note:Exception for certain borrowing

    (3) Subsection (1) does not apply

    • (a) to a borrowing of a prescribed class or type or to a borrowing in prescribed circumstances or in a prescribed manner; or

    • (b) except as may be provided in any regulations, to a borrowing

      • (i) from a person in an amount of $150,000 or more, or

      • (ii) through the issue of instruments in denominations of $150,000 or more.

  • Marginal note:Exception

    (4) Subsection (1) does not apply to a non-bank affiliate that is

    • (a) a Canadian entity referred to in any of paragraphs 468(1)(b), (c) or (e) to (g);

    • (b) an entity controlled by a bank holding company or an insurance holding company or in which a bank holding company or an insurance holding company has a substantial investment;

    • (c) a financial institution referred to in paragraph (g) of the definition “financial institution” in section 2; or

    • (d) a prescribed entity.

  • 2007, c. 6, s. 56.