Regulations Respecting the Protection and Maintenance of Assets of Banks
P.C. 1992-1181 1992-06-04
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 559(g) of the Bank ActFootnote *, is pleased hereby to make the annexed Regulations respecting the protection and maintenance of assets of banks.
Return to footnote *S.C. 1991, c. 46
2. In these Regulations,
“bond” means a contract of insurance by which one party agrees to indemnify another party for loss arising out of the act of a third party; (caution)
“security”, in respect of a bank, means a negotiable security owned or held by the bank or held by the bank in trust, but does not include a security issued by the bank; (titre)
- “security transaction”
“security transaction” means a purchase, sale, redemption, exchange, transfer or assignment of, or other transaction in respect of, a security. (opération sur titres)
- SOR/92-526, s. 1(F).
3. These Regulations do not apply to a bank
(a) that is carrying on business in a jurisdiction in compliance with a law of that jurisdiction, to the extent that that law is inconsistent with these Regulations; or
(b) to the extent that they are inconsistent with
(i) a power conferred or a duty imposed on the bank in respect of the administration of an estate or trust, or
(ii) the discharge of the bank’s responsibilities in acting as an agent.
SAFEGUARDING OF ASSETS
4. A bank shall
(a) maintain a record in writing of procedures to be followed in the handling and safeguarding of assets owned or held by the bank; and
(b) inform every director, officer, employee and agent of the bank who has access to, or is involved in the handling and safeguarding of, assets owned or held by the bank of those procedures.
SAFEGUARDING OF SECURITIES
5. A bank shall maintain an up-to-date record that identifies every security.
6. (1) Subject to subsection (2) and section 7, a bank shall ensure that every security is kept securely, in a manner that prevents unauthorized access to the security, in the custody of
(a) the bank; or
(b) an entity that is authorized to act as a custodian of securities or as a depository or clearing agency for securities by a law of the jurisdiction in which the entity is carrying on business.
(2) Subsection (1) does not apply in respect of a security that is
(a) under the control of the government of a jurisdiction in which the bank is carrying on business;
(b) pledged as collateral for the indebtedness or potential indebtedness of the bank;
(c) loaned to a person pursuant to a written agreement; or
(d) in transit.
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