Securities Dealing Restrictions (Banks) Regulations (SOR/92-279)

Short Title

1 These Regulations may be cited as the Securities Dealing Restrictions (Banks) Regulations.

Restrictions

2 A bank shall not deal in Canada in securities to the extent that the securities dealings consist of

• (a) the primary distribution of shares or ownership interests, or warrants in respect thereof;

• (b) secondary market trading in shares or ownership interests, or warrants in respect thereof;

• (c) the primary distribution of debt obligations of a body corporate, or warrants in respect thereof; or

• (d) acting as a selling agent in connection with the distribution of mutual funds.

• 3 (1) Nothing in section 2 prohibits a bank from dealing in securities for its own account or any account administered by the bank or providing investment counselling and portfolio management services.

• (2) Nothing in section 2 prohibits a bank from dealing in securities where the securities dealings consist of

  • (a) the primary distribution of debt obligations of, or warrants in respect of debt obligations of, or guaranteed by

    • (i) the government of Canada or a province or municipality, or an agency thereof,

    • (ii) a corporation that is a public utility that is directly or indirectly owned by a government referred to in subparagraph (i),

    • (iii) the government of a foreign country or a political subdivision thereof, or by an agency thereof, or

    • (iv) an international agency of which Canada is a member, including an international agency that is a member of the World Bank Group, the Inter American Development Bank, the Asian Development Bank, the Caribbean Development Bank and the European Bank for Reconstruction and Development and any other international regional bank;

  • (b) the primary distribution of debt obligations, or warrants in respect thereof, that are money market securities;

  • (c) the primary distribution of debt obligations, or warrants in respect thereof, of the bank or an affiliated entity that are guaranteed by the bank;

  • (d) the primary distribution of shares or ownership interests, or warrants in respect thereof, of the bank;

  • (e) the unsolicited participation in the secondary market trading of shares or ownership interests, or warrants in respect thereof, where the trade is effected through a securities broker who is registered under a provincial securities Act or under the laws of any other jurisdiction;

  • (f) acting as a selling agent for mutual funds where the dealings relate to corporate sponsored accounts for pension plans, deferred profit sharing plans, retirement plans or other similar capital accumulation plans;

  • (g) acting as a member of a selling group in connection with the underwriting of securities issued by a body corporate other than the bank;

  • (h) effecting the private placement of securities on the same or a similar basis to that on which a member of a selling group participates in respect of an underwriting; or

  • (i) the primary distribution of debt obligations, or warrants in respect thereof, in respect of syndicated or consortium loans, including securities that are issued in the form of securitized debt instruments.