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;
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