Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)
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Assented to 2001-06-14
AMENDMENTS TO ACTS IN RELATION TO FINANCIAL INSTITUTIONS
1991, c. 46Bank Act
184. Schedules I and II to the Act are replaced by Schedules I and II set out in Schedule 2 to this Act.
R.S., c. B-2Bank of Canada Act
185. The definition “notes” in section 2 of the Bank of Canada Act is replaced by the following:
“notes”
« billets »
“notes” means notes intended for circulation in Canada.
186. Subsection 5(2) of the English version of the Act is replaced by the following:
Marginal note:Deputy Minister of Finance to be member of Board
(2) In addition to the members of the Board as constituted by subsection (1), the Deputy Minister of Finance or, if he or she is absent or unable to act or the office is vacant, such other officer of the Department of Finance as the Minister may nominate, is a member of the Board but does not have the right to vote.
Marginal note:1997, c. 15, s. 94
187. Paragraph 6(4)(d) of the Act is replaced by the following:
(d) except as authorized by or under any Act of Parliament, is a director, partner, officer, employee or shareholder of
(i) a member of the Canadian Payments Association,
(ii) a clearing house or participant, as defined in section 2 of the Payment Clearing and Settlement Act,
(iii) an investment dealer that acts as a primary distributor of new Government of Canada securities, or
(iv) an institution that controls or is controlled by an institution referred to in any of subparagraphs (i) to (iii); or
188. Subsection 8(3) of the Act is replaced by the following:
Marginal note:Absence, etc., of Governor and Deputy
(3) The Board may authorize one of the directors or one of the persons appointed under section 7 to act as the Governor in the event that the Governor and Deputy Governor are absent or unable to act or the offices are vacant, but no such person has authority to act as Governor for a period exceeding one month without the approval of the Governor in Council.
189. (1) Subsection 9(1) of the Act is replaced by the following:
Marginal note:Directors
9. (1) The Minister, with the approval of the Governor in Council, shall appoint directors to hold office, during good behaviour, subject to removal by the Governor in Council at any time for cause, to replace the directors whose terms of office have expired. The term of a director begins on the day he or she is appointed and ends immediately before March 1 of the year that is three years after the year in which the term of office of the director’s predecessor expired.
Marginal note:Continuation in office
(1.1) If, on the expiry of a director’s term of office, no new director is appointed, the director whose term of office expired may continue in office until a director is appointed under subsection (1).
(2) Subsection 9(2) of the English version of the Act is replaced by the following:
Marginal note:Vacancy
(2) If a person ceases to be a director during the term for which he or she was appointed, the Minister shall, with the approval of the Governor in Council, appoint a qualified person to hold office for the remainder of the term.
Marginal note:1992, c. 1, s. 142(1)(Sch. V, item 5(2)(E)); 1997, c. 15, s. 95; 1999, c. 28, s. 94
190. (1) Subsection 10(2) of the Act is replaced by the following:
Marginal note:Ineligible persons
(2) No person is eligible to be appointed or to continue as a director if the person is a director, a partner, an officer or an employee of any of the following institutions:
(a) a direct clearer as defined in the by-laws of the Canadian Payments Association;
(b) a clearing house of a clearing and settlement system designated under subsection 4(1) of the Payment Clearing and Settlement Act;
(c) a participant in the Large Value Transfer System, or its successor, operated by the Canadian Payments Association;
(d) an investment dealer that acts as a distributor of new Government of Canada securities; or
(e) an institution that controls, or is controlled by, an institution referred to in any of paragraphs (a) to (d).
(2) Subsection 10(5) of the Act is repealed.
191. The Act is amended by adding the following after section 10:
Marginal note:Disclosure of conflict
10.1 (1) A director shall disclose to the Bank, in writing or by requesting to have it entered in the minutes of a meeting of the Board, the nature and extent of the director’s interest if the director
(a) is a party to a material contract or transaction, or proposed material contract or transaction, with the Bank;
(b) is a director or an officer of, or has a material interest in, any person who is a party to a material contract or transaction, or proposed material contract or transaction, with the Bank;
(c) is or is likely to be materially affected by any action taken or proposed to be taken by the Bank or the Governor under the Payment Clearing and Settlement Act; or
(d) is a director or an officer of, or has a material interest in, any person who is or is likely to be materially affected by any action taken or proposed to be taken by the Bank or the Governor under the Payment Clearing and Settlement Act.
Marginal note:Time of disclosure
(2) The disclosure shall be made as soon as the director becomes aware of the contract, transaction or action.
Marginal note:Restriction on voting
(3) A director who is required to make a disclosure shall not vote on any resolution to approve the contract, transaction or action, unless it relates to directors’ fees.
Marginal note:Continuing disclosure
(4) For the purpose of this section, a general notice to the Board by a director, declaring that he or she is a director or officer of or has a material interest in a person, and that he or she is to be regarded as interested in a contract or transaction entered into with that person or an action that affects that person, is a sufficient declaration of interest in relation to a contract or transaction with that person or action that affects that person.
192. Section 12 of the English version of the Act is replaced by the following:
Marginal note:Chair
12. The Governor is Chair of the Board of Directors.
Marginal note:1997, c. 15, s. 97
193. Section 16 of the Act is replaced by the following:
Marginal note:Oath of directors and staff
16. Before a person starts to act as a director, an officer or an employee of the Bank, he or she shall take an oath, or make a solemn affirmation, of fidelity and secrecy, in the form set out in the schedule, before a commissioner for taking affidavits.
194. (1) Paragraphs 18(d) and (e) of the Act are replaced by the following:
(d) buy and sell securities issued or guaranteed by the Government of the United States of America or Japan or the government of a country in the European Union;
Marginal note:1997, c. 15, s. 98(1); 1999, c. 28, s. 95(2)
(2) Paragraphs 18(g.1) to (i) of the Act are replaced by the following:
(g.1) if the Governor is of the opinion that there is a severe and unusual stress on a financial market or financial system, buy and sell any other securities, treasury bills, obligations, bills of exchange or promissory notes, to the extent determined necessary by the Governor for the purpose of promoting the stability of the Canadian financial system;
(h) make loans or advances for periods not exceeding six months to members of the Canadian Payments Association on taking security in any property that the institution to which the loan or advance is made is authorized to hold;
(i) make loans or advances for periods not exceeding six months to the Government of Canada or the government of a province on taking security in readily marketable securities issued or guaranteed by Canada or any province;
Marginal note:1997, c. 15, s. 99; 1999, c. 28, s. 96
195. Sections 19 and 20 of the Act are replaced by the following:
Marginal note:Publication
19. If the Bank takes any action under paragraph 18(g.1), the Bank shall cause a notice to be published in the Canada Gazette that the Governor has formed an opinion that there is a severe and unusual stress on a financial market or financial system. The notice is to be published as soon as the Governor is of the opinion that its publication will not materially contribute to the stress to which the notice relates.
Marginal note:Acquisition of collateral securities
20. The Bank may
(a) acquire from any bank or authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act and hold any property held by the bank or authorized foreign bank as security under Part VIII of the Bank Act; and
(b) exercise every right and remedy in respect of any security acquired under paragraph (a) that could have been exercised by the bank or authorized foreign bank.
Marginal note:1999, c. 28, s. 97(1)
196. The definition “federal financial institution” in subsection 22(5) of the Act is replaced by the following:
“federal financial institution”
« institution financière fédérale »
“federal financial institution” means a bank, an authorized foreign bank, a company to which the Trust and Loan Companies Act applies or an association to which the Cooperative Credit Associations Act applies;
197. Subsection 24(3) of the English version of the Act is replaced by the following:
Marginal note:Canadian Government cheques to be paid or negotiated at par
(3) The Bank shall not make any charge for cashing or negotiating a cheque drawn on the Receiver General or on the account of the Receiver General, or for cashing or negotiating any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund, or on a cheque drawn in favour of the Government of Canada or any of its departments and tendered for deposit in the Consolidated Revenue Fund.
198. (1) Subsections 25(1) and (2) of the Act are replaced by the following:
Marginal note:Sole right of note issue
25. (1) The Bank has the sole right to issue notes and those notes shall be a first charge on the assets of the Bank.
Marginal note:Arrangements for issue
(2) It is the duty of the Bank to make adequate arrangements for the issue of its notes in Canada and to supply those notes as required for circulation in Canada.
(2) Subsection 25(3) of the French version of the Act is replaced by the following:
Marginal note:Coupures
(3) Les coupures des billets de la Banque, de même que leurs modalités d’impression et de validation, sont déterminées par règlement du gouverneur en conseil.
(3) Subsections 25(4) and (5) of the Act are replaced by the following:
Marginal note:Form and material
(4) The form and material of the notes of the Bank shall be subject to approval by the Minister, but each note shall be printed in both the English and French languages.
Marginal note:Notes previously printed
(5) Notwithstanding anything contained in this section, each note of the Bank printed before June 23, 1936, whether issued before, on or after that date, is a valid and binding obligation of the Bank.
Marginal note:1997, c. 15, s. 104
199. Section 29 of the Act is replaced by the following:
Marginal note:Weekly balance sheet
29. (1) The Bank shall, as soon as practicable after the close of business on Wednesday of each week, make up and transmit to the Minister its balance sheet as at the close of business on that day.
Marginal note:Monthly balance sheet
(2) The Bank shall, as soon as practicable after the last business day of each month, make up and transmit to the Minister its balance sheet as at the close of business on that day. The balance sheet shall set out information regarding the Bank’s investments in securities issued or guaranteed by the Government of Canada.
Marginal note:Publication of balance sheets
(3) A copy of each balance sheet shall be published in the issue of the Canada Gazette next following its transmission to the Minister.
200. The Act is amended by adding the following after section 30:
LIABILITY
Marginal note:No liability if in good faith
30.1 No action lies against Her Majesty, the Minister, any officer, employee or director of the Bank or any person acting under the direction of the Governor for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed.
201. Sections 31 to 33 of the Act are replaced by the following:
Marginal note:Holding office when ineligible
31. Every person who holds office or continues to hold office as the Governor or as a Deputy Governor or director of the Bank, knowing that he or she is not eligible for that office, is guilty of an offence and liable on summary conviction to a fine of not more than one hundred thousand dollars or to imprisonment for a term of not more than six months or to both.
Marginal note:Verifying false statement, account or list
32. Every director, officer or auditor of the Bank who verifies any statement, account or list required to be furnished to the Minister pursuant to this Act, or who has to do with the delivering or transmitting of that statement, account or list to the Minister, knowing it to be false in any material particular, is guilty of an offence and liable on summary conviction to a fine of not more than one hundred thousand dollars or to imprisonment for a term of not more than six months or to both.
Marginal note:Contravention of Act
33. Any officer of the Bank or any officer of a bank or any other person who fails or omits to comply with any provision of this Act is guilty of an offence and, unless otherwise provided by this Act, liable on summary conviction to a fine of not more than one hundred thousand dollars or to imprisonment for a term of not more than six months or to both.
Marginal note:1997, c. 15, ss. 107 to 110
202. Schedules I to III to the Act are replaced by the schedule set out in Schedule 3 to this Act.
R.S., c. C-3Canada Deposit Insurance Corporation Act
203. The definitions “federal institution” and “member institution” in section 2 of the Canada Deposit Insurance Corporation Act are replaced by the following:
“federal institution”
« institution fédérale »
“federal institution” means a bank, company or association referred to in section 8;
“member institution”
« institution membre »
“member institution” means a corporation that has deposit insurance under this Act;
Marginal note:R.S., c. 18 (3rd Supp.), s. 48
204. Paragraphs 5(1)(b) to (c) of the Act are replaced by the following:
(b) the persons who for the time being hold the offices of the Governor of the Bank of Canada, the Deputy Minister of Finance, the Superintendent of Financial Institutions and the Commissioner of the Financial Consumer Agency of Canada;
(b.1) a Deputy Superintendent of Financial Institutions, or an officer of the Office of the Superintendent of Financial Institutions, appointed by the Minister; and
(c) not more than five other members appointed by the Minister with the approval of the Governor in Council.
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