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.
(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.
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.
(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.
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