Office of the Superintendent of Financial Institutions Act (R.S.C., 1985, c. 18 (3rd Supp.), Part I)

Act current to 2017-11-06 and last amended on 2017-01-15. Previous Versions

Office of the Superintendent of Financial Institutions Act

R.S.C., 1985, c. 18 (3rd Supp.), Part I

[Enacted as Part I to R.S., 1985, c. 18 (3rd Supp.), in force July 2, 1987, see SI/87-146.]

Short Title

Marginal note:Short title

 This Part may be cited as the Office of the Superintendent of Financial Institutions Act.

Interpretation

Marginal note:Interpretation

 In this Part,

bank holding company

bank holding company means a bank holding company as defined in section 2 of the Bank Act; (société de portefeuille bancaire)

Deputy Superintendent

Deputy Superintendent means a Deputy Superintendent of Financial Institutions appointed pursuant to section 8; (surintendant adjoint)

financial institution

financial institution means

insurance holding company

insurance holding company means an insurance holding company as defined in subsection 2(1) of the Insurance Companies Act; (société de portefeuille d’assurances)

Minister

Minister means the Minister of Finance; (ministre)

Office

Office means the Office of the Superintendent of Financial Institutions established pursuant to section 4; (Bureau)

pension plan

pension plan has the same meaning as in subsection 2(1) of the Pension Benefits Standards Act, 1985 or has the meaning assigned by the definition pooled registered pension plan in subsection 2(1) of the Pooled Registered Pension Plans Act, as the case may be; (régime de pension)

Superintendent

Superintendent means the Superintendent of Financial Institutions appointed pursuant to subsection 5(1). (surintendant)

  • R.S., 1985, c. 18 (3rd Supp.), s. 3;
  • 1991, c. 45, s. 557, c. 47, s. 742;
  • 1992, c. 1, s. 142, c. 56, s. 18;
  • 1996, c. 6, s. 104;
  • 1998, c. 12, s. 27;
  • 1999, c. 28, s. 127;
  • 2001, c. 9, s. 466;
  • 2012, c. 16, s. 90;
  • 2014, c. 39, s. 300.

Purpose of Act

Marginal note:To ensure regulation of institutions and pension plans

 The purpose of this Act is to ensure that financial institutions and pension plans are regulated by an office of the Government of Canada so as to contribute to public confidence in the Canadian financial system.

  • 1996, c. 6, s. 105;
  • 1998, c. 12, s. 28.

Establishment of the Office

Marginal note:Office established
  •  (1) There is hereby established an office of the Government of Canada called the Office of the Superintendent of Financial Institutions over which the Minister shall preside and for which the Minister shall be responsible.

  • Marginal note:Objects of Office — financial institutions

    (2) The objects of the Office, in respect of financial institutions, are

    • (a) to supervise financial institutions in order to determine whether they are in sound financial condition and are complying with their governing statute law and supervisory requirements under that law;

    • (b) to promptly advise the management and board of directors of a financial institution in the event the institution is not in sound financial condition or is not complying with its governing statute law or supervisory requirements under that law and, in such a case, to take, or require the management or board to take, the necessary corrective measures or series of measures to deal with the situation in an expeditious manner;

    • (c) to promote the adoption by management and boards of directors of financial institutions of policies and procedures designed to control and manage risk; and

    • (d) to monitor and evaluate system-wide or sectoral events or issues that may have a negative impact on the financial condition of financial institutions.

  • Marginal note:Objects of Office — pension plans

    (2.1) The objects of the Office, in respect of pension plans, are

    • (a) to supervise pension plans to determine whether they meet the minimum funding requirements and are complying with the other requirements of the Pension Benefits Standards Act, 1985 and the Pooled Registered Pension Plans Act and their regulations and supervisory requirements under that legislation;

    • (b) to promptly advise the administrator of a pension plan in the event that the plan is not meeting the minimum funding requirements or is not complying with other requirements of the Pension Benefits Standards Act, 1985 or the Pooled Registered Pension Plans Act or their regulations or supervisory requirements under that legislation and, in such a case, to take, or require the administrator to take, the necessary corrective measures or series of measures to deal with the situation in an expeditious manner; and

    • (c) to promote the adoption by administrators of pension plans of policies and procedures designed to control and manage risk.

  • Marginal note:Protection of depositors, etc.

    (3) In pursuing its objects, the Office shall strive

    • (a) in respect of financial institutions, to protect the rights and interests of depositors, policyholders and creditors of financial institutions, having due regard to the need to allow financial institutions to compete effectively and take reasonable risks; and

    • (b) in respect of pension plans, to protect the rights and interests of members of pension plans, former members and any other persons who are entitled to pension benefits or refunds under pension plans.

  • Marginal note:Factors affecting financial institutions

    (4) Notwithstanding that the regulation and supervision of financial institutions by the Office and the Superintendent can reduce the risk that financial institutions will fail, regulation and supervision must be carried out having regard to the fact that boards of directors are responsible for the management of financial institutions, financial institutions carry on business in a competitive environment that necessitates the management of risk and financial institutions can experience financial difficulties that can lead to their failure.

  • Marginal note:Factors affecting pension plans

    (5) Notwithstanding that the regulation and supervision of pension plans by the Office and the Superintendent can reduce the risk that pension plans will fail to pay the expected benefits, regulation and supervision must be carried out having regard to the fact that administrators of pension plans are responsible for the management of the pension plans and that pension plans can experience financial and funding difficulties that can result in the reduction of those benefits.

  • R.S., 1985, c. 18 (3rd Supp.), s. 4;
  • 1996, c. 6, s. 106;
  • 1998, c. 12, s. 29;
  • 2012, c. 16, s. 91.

Superintendent of Financial Institutions

Marginal note:Appointment of Superintendent
  •  (1) The Governor in Council shall appoint an officer called the Superintendent of Financial Institutions to be the deputy head of the Office.

  • Marginal note:Tenure of office and removal

    (2) The Superintendent holds office during good behaviour for a term of seven years, but may be removed for cause by the Governor in Council.

  • Marginal note:Tabling reasons

    (3) Where the Superintendent is removed from office, the order in council providing for the removal and the documents relating thereto shall be laid before each House of Parliament not later than the fifteenth sitting day of that House following the day that the order is issued.

  • Marginal note:Further terms

    (4) The Superintendent, on the expiration of any term of office, is eligible to be re-appointed for a further term of office.

  • Marginal note:Absence or incapacity

    (5) In the event of the absence or incapacity of the Superintendent, or if the office of Superintendent is vacant, the Governor in Council may appoint a qualified person to hold office instead of the Superintendent for a term not exceeding six months, and that person shall, while holding that office, have all of the powers, duties and functions of the Superintendent under this Part or any other Act of Parliament.

  • Marginal note:Further terms

    (6) A person appointed pursuant to subsection (5), on the expiration of any term of office, is eligible to be re-appointed for a further term of office.

 
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