Assessment of Financial Institutions Regulations, 2001 (SOR/2001-177)

Regulations are current to 2014-09-01 and last amended on 2013-01-01. Previous Versions

Assessment of Financial Institutions Regulations, 2001

SOR/2001-177

OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACT

Registration 2001-05-17

Assessment of Financial Institutions Regulations, 2001

P.C. 2001-891  2001-05-17

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 23(3)Footnote a of the Office of the Superintendent of Financial Institutions ActFootnote b, hereby makes the annexed Assessment of Financial Institutions Regulations, 2001.

INTERPRETATION

 The following definitions apply in these Regulations.

“Act”

“Act” means the Office of the Superintendent of Financial Institutions Act. (Loi)

“affiliate”

“affiliate” has the same meaning as in section 2 of the Bank Act. (membre du groupe)

“approved mortgage insurer”

“approved mortgage insurer” means an approved mortgage insurer within the meaning of section 2 of the Protection of Residential Mortgage or Hypothecary Insurance Act or a corporation or company that is treated as if it were an approved mortgage insurer in accordance with subsection 6(4) or 7(1) of that Act, respectively. (assureur hypothécaire agréé)

“authorized foreign bank”

“authorized foreign bank” has the same meaning as in section 2 of the Bank Act. (banque étrangère autorisée)

“cooperative credit association”

“cooperative credit association” means an association to which the Cooperative Credit Associations Act applies and includes a central cooperative credit society for which an order has been made under subsection 473(1) of that Act. (association coopérative de crédit)

“foreign fraternal benefit society”

“foreign fraternal benefit society” has the same meaning as in section 571 of the Insurance Companies Act. (société de secours étrangère)

“foreign life company”

“foreign life company” has the same meaning as in section 571 of the Insurance Companies Act. (société d’assurance-vie étrangère)

“life company”

“life company” has the same meaning as in subsection 2(1) of the Insurance Companies Act. (société d’assurance-vie)

“loan company subsidiary”

“loan company subsidiary”, in respect of a bank, means a subsidiary of the bank that is a trust and loan company and that is not authorized under the Trust and Loan Companies Act to carry on any activity referred to in section 412 of that Act. (société de prêt filiale)

“society”

“society” has the same meaning as in subsection 2(1) of the Insurance Companies Act. (société de secours)

“subsidiary”

“subsidiary” has the same meaning as in section 2 of the Bank Act. (filiale)

“trust and loan company”

“trust and loan company” means a company to which the Trust and Loan Companies Act applies. (société de fiducie et de prêt)

  • SOR/2012-233, s. 1.

DETERMINATION OF ASSETS, NET REVENUES AND NET PREMIUMS

 The Superintendent shall, before December 31 in each calendar year, ascertain

  • (a) the average total assets during the fiscal year ending on March 31 of that year of each bank and trust and loan company;

  • (b) the average total assets in Canada during the fiscal year ending on March 31 of that year of each authorized foreign bank;

  • (c) the average total assets during the immediately preceding calendar year of each cooperative credit association;

  • (d) the total amount of the net revenue received during the immediately preceding calendar year by Green Shield Canada from its prepayment plans other than administrative services only plans;

  • (e) the aggregate of

    • (i) the total amount of net premiums received in Canada during the immediately preceding calendar year by each company, society and provincial company to which the Insurance Companies Act applies,

    • (ii) an amount equal to 25 per cent of net premiums received outside Canada during the immediately preceding calendar year by each company, society and provincial company to which the Insurance Companies Act applies, and

    • (iii) in the case of a life company or a society, an amount equal to 25 per cent of net premiums received outside Canada during the immediately preceding calendar year by each of its subsidiaries that is engaged in the business of insurance outside Canada;

  • (f) the total amount of net premiums received in Canada during the immediately preceding calendar year by each foreign company to which the Insurance Companies Act applies; and

  • (g) the minimum required capital that was reported by each approved mortgage insurer in its annual return prepared in accordance with subsection 665(1) of the Insurance Companies Act during the fiscal year ending on March 31 of that year.

  • 2011, c. 15, s. 32;
  • SOR/2012-233, s. 2.

DETERMINATION OF TOTAL ASSESSMENT

  •  (1) For the purpose of subsection 23(3) of the Act and subject to subsection (2), the amount assessed by the Superintendent against each financial institution in respect of any fiscal year shall be equal to the aggregate of the base assessment determined for the financial institution in accordance with sections 4 to 7 and any applicable assessment surcharge determined for the financial institution in accordance with section 8, less any interim assessment prepared against the financial institution pursuant to subsection 23(4) of the Act.

  • (2) No assessment is payable in any fiscal year by a financial institution with respect to which the Minister has approved an application for voluntary liquidation and dissolution before the beginning of that fiscal year or with respect to which a court has made a winding-up order under the Winding-up and Restructuring Act before the beginning of that fiscal year.

DETERMINATION OF BASE ASSESSMENT FOR BANKS, AUTHORIZED FOREIGN BANKS AND TRUST AND LOAN COMPANIES

  •  (1) Subject to subsection (2), the base assessment of a financial institution that is a bank, an authorized foreign bank or a trust and loan company shall be equal to, for any fiscal year, the aggregate of

    • (a) in the case of

      • (i) a loan company subsidiary, $10,000, or

      • (ii) a financial institution not referred to in subparagraph (i), where the average total assets ascertained pursuant to paragraph 2(a) or (b), as the case may be, are

        • (A) greater than $50 billion, $275,000,

        • (B) greater than $40 billion and equal to or less than $50 billion, $140,000,

        • (C) greater than $25 billion and equal to or less than $40 billion, $100,000,

        • (D) greater than $5 billion and equal to or less than $25 billion, $75,000,

        • (E) greater than $2 billion and equal to or less than $5 billion, $50,000,

        • (F) greater than $1 billion and equal to or less than $2 billion, $45,000,

        • (G) greater than $500 million and equal to or less than $1 billion, $40,000,

        • (H) greater than $100 million and equal to or less than $500 million, $30,000,

        • (I) greater than $50 million and equal to or less than $100 million, $20,000, or

        • (J) equal to or less than $50 million, $10,000, and

    • (b) the amount determined by the formula

      (A - B) × C / D

      where

      A 
      is the amount by which the amount of the expenses, ascertained pursuant to subsection 23(1) of the Act, incurred for or in connection with the administration of the Bank Act and the Trust and Loan Companies Act exceeds the total of any service charges, assessment surcharges and other revenues relating to the administration of those Acts in respect of the fiscal year,
      B 
      is the aggregate of all the amounts assessed under paragraph (a) against all financial institutions that are banks, authorized foreign banks or trust and loan companies and under subsection (2) against all financial institutions referred to in that subsection,
      C 
      is the average total assets of the financial institution ascertained pursuant to paragraph 2(a) or (b), as the case may be, and
      D 
      is the aggregate of the average total assets for all financial institutions that are banks, authorized foreign banks or trust and loan companies, other than institutions referred to in subsection (2) or 3(2), ascertained pursuant to paragraph 2(a) or (b), as the case may be.
  • (2) The base assessment of a financial institution that is an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act shall be equal to $10,000.

DETERMINATION OF BASE ASSESSMENT FOR COOPERATIVE CREDIT ASSOCIATIONS

 The base assessment of a financial institution that is a cooperative credit association shall be equal to, for any fiscal year,

  • (a) where the amount determined by the formula A × B / C is equal to or less than $10,000, the amount of $10,000, and

  • (b) otherwise, the aggregate of $10,000 and the amount determined by the formula

    (B - D) × A / E

    where

    A 
    is the average total assets of the cooperative credit association ascertained pursuant to paragraph 2(c),
    B 
    is the amount by which the amount of expenses, ascertained pursuant to subsection 23(1) of the Act, incurred for or in connection with the administration of the Cooperative Credit Associations Act exceeds the total of any service charges, assessment surcharges and other revenues relating to the administration of that Act in respect of that fiscal year,
    C 
    is the aggregate of the average total assets for all cooperative credit associations, other than those referred to in subsection 3(2), ascertained pursuant to paragraph 2(c),
    D 
    is the product obtained by multiplying $10,000 by the number of cooperative credit associations assessed under subsection 23(3) of the Act in respect of that fiscal year, and
    E 
    is the aggregate of the average total assets ascertained pursuant to paragraph 2(c) for each cooperative credit association, other than one referred to in subsection 3(2), in respect of which the amount determined by the formula A × B / C is greater than $10,000.

DETERMINATION OF BASE ASSESSMENT FOR INSURANCE COMPANIES

 The base assessment of a financial institution that is a life company, a society, a foreign life company or a foreign fraternal benefit society shall be equal to, for any fiscal year, the greater of

  • (a) in the case of

    • (i) a society or foreign fraternal benefit society, $1,000, or

    • (ii) a life company or a foreign life company that is not a foreign fraternal benefit society, $10,000, and

  • (b) the amount determined by the formula

    (C – D) × A / B

    where

    A 
    is the total amount of net premiums ascertained pursuant to paragraph 2(e) or (f), as the case may be, in respect of the financial institution, less 25 per cent of the amount, if any, by which that total amount exceeds $100 million,
    B 
    is the aggregate of the amounts determined for A, in respect of all financial institutions that are life companies, societies, foreign life companies or foreign fraternal benefit societies, other than those assessed under paragraph (a) and those referred to in subsection 3(2),
    C 
    is the amount by which the amount of expenses, ascertained pursuant to subsection 23(1) of the Act, incurred for or in connection with the administration of the Insurance Companies Act and attributable to financial institutions that are life companies, societies, foreign life companies or foreign fraternal benefit societies exceeds the total of any service charges, assessment surcharges and other revenues relating to the administration of that Act and attributable to those institutions in respect of that fiscal year, and
    D 
    is the aggregate of all the amounts assessed under paragraph (a) against all financial institutions that are life companies, societies, foreign life companies or foreign fraternal benefit societies.
  •  (1) For the purposes of this section, Green Shield Canada shall be considered to be a property and casualty company within the meaning of subsection 2(1) of the Insurance Companies Act.

  • (2) The base assessment of a financial institution that is an insurance company, other than one referred to in section 6, shall, for any fiscal year, be equal to

    • (a) the greater of

      • (i) $10,000, and

      • (ii) the amount determined by the formula

        (C – D) × A / B

        where

        A 
        is the total amount of net revenue or the total amount of net premiums ascertained under paragraph 2(d), (e) or (f), as the case may be, in respect of the financial institution, less 25 per cent of the amount, if any, by which that total amount exceeds $100 million,
        B 
        is the aggregate of the amounts determined for A, in respect of all financial institutions that are insurance companies, other than those referred to in section 6, those assessed under subparagraph (a)(i) and those referred to in subsection 3(2),
        C 
        is the amount by which the amount of expenses, ascertained under subsection 23(1) of the Act, incurred for or in connection with the administration of the Insurance Companies Act and the Green Shield Canada Act and attributable to financial institutions that are insurance companies, other than those referred to in section 6, exceeds the total of any service charges, assessment surcharges and other revenues relating to the administration of those Acts and attributable to those institutions in respect of that fiscal year, and
        D 
        is the aggregate of all the amounts assessed under subparagraph (a)(i); or
    • (b) if the financial institution is an approved mortgage insurer, the aggregate of the amount determined under paragraph (a) and the amount determined by the formula

      C × A / B

      where

      A 
      is the minimum required capital ascertained under paragraph 2(g) in respect of the financial institution,
      B 
      is the aggregate of the amounts determined for A in respect of all financial institutions that are approved mortgage insurers, other than those referred to in subsection 3(2), and
      C 
      is the amount of expenses, ascertained under subsection 23(1) of the Act, incurred for or in connection with the administration of the Protection of Residential Mortgage or Hypothecary Insurance Act in respect of that fiscal year.
  • SOR/2012-233, s. 3.

ASSESSMENT SURCHARGE

  •  (1) Subject to subsections (2) and (3), the amount of the surcharge to be assessed in any fiscal year in respect of a financial institution that has been assigned a “stage” rating pursuant to the Guide to Intervention for Federal Financial Institutions or in accordance with the principles set out in that Guide shall be equal to

    • (a) in the case of an institution that has been rated at “stage 1”, the aggregate of $3,000 and an amount equal to 1/12 of 10 per cent of its base assessment for the preceding fiscal year for each month during which the institution was so rated; and

    • (b) in the case of an institution that has been rated at “stage 2”, “stage 3” or “stage 4”, the aggregate of $5,000 and an amount equal to 1/12 of 15 per cent of its base assessment for the preceding fiscal year for each month during which the institution was so rated.

  • (2) Subject to subsection (3), the amount of the surcharge to be assessed in any fiscal year in respect of a financial institution that has been assigned a “stage” rating for the sole reason that it is an affiliate of another financial institution that has also been assigned a “stage” rating shall be equal to

    • (a) in the case of an institution that has been rated at “stage 1”, an amount equal to 1/12 of 10 per cent of its base assessment for the preceding fiscal year for each month during which the institution was so rated; and

    • (b) in the case of an institution that has been rated at “stage 2”, “stage 3” or “stage 4”, an amount equal to 1/12 of 15 per cent of its base assessment for the preceding fiscal year for each month during which the institution was so rated.

  • (3) The amount of the surcharge to be assessed in any fiscal year in respect of a financial institution shall not exceed an amount equal to

    • (a) in the case of a surcharge referred to in paragraph (1)(a) or (2)(a), 0.2 per cent of the assets of the institution at the end of the preceding fiscal year; and

    • (b) in the case of a surcharge referred to in paragraph (1)(b) or (2)(b), 0.4 per cent of the assets of the institution at the end of the preceding fiscal year.

NOTICE OF ASSESSMENT

 The Superintendent shall send to each financial institution a notice in writing of the assessment against it.

TRANSITIONAL

  •  (1) In respect of the fiscal year beginning on April 1, 2001 and ending on March 31, 2002, the rate of 25 per cent referred to in paragraph 2(e) shall be reduced to 12.5 per cent.

  • (2) In respect of the period beginning on June 1, 2001 and ending on March 31, 2002,

    • (a) the amount of $3,000 referred to in paragraph 8(1)(a) shall be reduced to $1,500;

    • (b) the amount of $5,000 referred to in paragraph 8(1)(b) shall be reduced to $2,500;

    • (c) the rate of 10 per cent referred to in paragraphs 8(1)(a) and (2)(a) shall be reduced to 5 per cent; and

    • (d) the rate of 15 per cent referred to in paragraphs 8(1)(b) and (2)(b) shall be reduced to 7.5 per cent.

REPEAL

 [Repeal]

COMING INTO FORCE

 These Regulations come into force on June 1, 2001.

RELATED PROVISIONS

  • — 2011, c. 15, s. 33

    • 33. Every amount assessed under subsection 23(3) of the Office of the Superintendent of Financial Institutions Act, after May 31, 2001, against a life company or a society is valid to the same extent as it would have been were it assessed after the coming into force of section 32.