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Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)

Assented to 2001-06-14

Marginal note:1999, c. 28, s. 35(1)

142. Paragraph 543(1)(a) of the Act is replaced by the following:

  • (a) act as agent for any person in respect of the provision of any service that is provided by a financial institution, an entity in which a bank is permitted to acquire a substantial investment under section 468 or a Canadian entity acquired or held under section 522.08 and may enter into an arrangement with any person in respect of the provision of that service; or

Marginal note:1999, c. 28, s. 35(1)

  • 143. (1) Subsection 546(1) of the Act is replaced by the following:

    Marginal note:Deposits less than $150,000

    • 546. (1) Subject to the regulations, an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

  • (2) Section 546 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Regulations

      (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, an authorized foreign bank referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

Marginal note:1999, c. 28, s. 35(1)

  • 144. (1) Subsection 547(1) of the Act is replaced by the following:

    Marginal note:Shared premises

    • 547. (1) Subject to the regulations, no authorized foreign bank shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the authorized foreign bank.

  • Marginal note:1999, c. 28, s. 35(1)

    (2) Subsection 547(3) of the Act is replaced by the following:

    • Marginal note:Adjacent premises

      (3) Subject to the regulations, no authorized foreign bank shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the authorized foreign bank, unless the authorized foreign bank clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.

    • Marginal note:Regulations

      (4) The Governor in Council may make regulations

      • (a) respecting the circumstances in which, and the conditions under which, an authorized foreign bank may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and

      • (b) respecting the circumstances in which, and the conditions under which, an authorized foreign bank may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).

Marginal note:1999, c. 28, s. 35(1)

145. Section 550 of the Act is replaced by the following:

Marginal note:Restriction on leasing

550. An authorized foreign bank shall not engage in Canada in any personal property leasing activity in which a financial leasing entity as defined in subsection 464(1) is not permitted to engage.

Marginal note:1999, c. 28, s. 35(1)

146. Section 552 of the Act is repealed.

Marginal note:1999, c. 28, s. 35(1)

147. Subsection 553.1(1) of the Act is replaced by the following:

Marginal note:Restriction on partnerships

  • 553.1 (1) Except with the approval of the Superintendent, an authorized foreign bank may not, in respect of its business in Canada, be a general partner in a limited partnership or a partner in a general partnership.

Marginal note:1999, c. 28, s. 35(1)

148. Subsection 556(3) of the Act is replaced by the following:

  • Marginal note:Execution of trust

    (3) An authorized foreign bank is not, in respect of its business in Canada, bound to see to the execution of any trust to which a deposit made under the authority of this Act is subject.

  • Marginal note:Payment when authorized foreign bank has notice of trust

    (4) Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the authorized foreign bank has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.

Marginal note:1999, c. 28, s. 35(1)

149. The headings before section 559 of the Act are replaced by the following:

Accounts
Marginal note:1999, c. 28, s. 35(1)

150. Subsection 560(2) of the Act is replaced by the following:

  • Marginal note:Exception

    (2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that is prescribed.

Marginal note:1999, c. 28, s. 35(1)

  • 151. (1) The portion of subsection 564(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Disclosure required on opening a deposit account

    • 564. (1) Subject to subsections (2) to (4), an authorized foreign bank shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, it provides in writing to the individual who requests the opening of the account

  • Marginal note:1999, c. 28, s. 35(1)

    (2) Subsections 564(2) to (5) of the Act are replaced by the following:

    • Marginal note:Exception

      (2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the authorized foreign bank shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.

    • Marginal note:Exception

      (3) If an authorized foreign bank has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the authorized foreign bank has not complied with subsection (1) in respect of the opening of that other account, the authorized foreign bank shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.

    • Marginal note:Disclosure in writing

      (4) If an authorized foreign bank opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).

    • Marginal note:Right to close account

      (5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.

    • Marginal note:Regulations

      (6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.

Marginal note:1999, c. 28, s. 35(1)

152. The heading before section 567 of the Act is converted from roman type to italics.

153. Section 567 of the Act, as enacted by subsection 35(4) of An Act to amend the Bank Act, the Winding-up and Restructuring Act and other Acts relating to financial institutions and to make consequential amendments to other Acts, being chapter 28 of the Statutes of Canada, 1999, is replaced by the following:

Definition of “cost of borrowing”

567. For the purposes of this section and sections 567.1 to 574, “cost of borrowing” in respect of a loan made by an authorized foreign bank means

  • (a) the interest or discount applicable to the loan;

  • (b) any amount charged in connection with the loan that is payable by the borrower to the authorized foreign bank; and

  • (c) any charge prescribed to be included in the cost of borrowing.

For those purposes, however, “cost of borrowing” does not include any charge prescribed to be excluded from the cost of borrowing.

154. The Act is amended by adding the following before section 573:

Complaints
Marginal note:1999, c. 28, s. 35(1)

  • 155. (1) Paragraph 573(1)(a) of the Act is replaced by the following:

    • (a) establish procedures for dealing with complaints made by persons having requested or received products or services from the authorized foreign bank;

  • (2) If this section comes into force before paragraph 573(1)(a) of the Act, as enacted by subsection 35(9) of An Act to amend the Bank Act, the Winding-up and Restructuring Act and other Acts relating to financial institutions and to make consequential amendments to other Acts, being chapter 28 of the Statutes of Canada, 1999, comes into force, then subsection 35(9) of that Act is repealed.

  • Marginal note:1999, c. 28, s. 35(1)

    (3) Subsection 573(2) of the Act is replaced by the following:

    • Marginal note:Procedures to be filed with Commissioner

      (2) An authorized foreign bank shall file with the Commissioner a copy of its procedures established under paragraph (1)(a).

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