Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)
Full Document:
Assented to 2001-06-14
456. Subsections 674(1) and (2) of the Act are replaced by the following:
Marginal note:Examination of companies, etc.
674. (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each company, society, foreign company and provincial company that the Superintendent considers to be necessary or expedient to determine whether the company, society, foreign company or provincial company is complying with the provisions of this Act and whether the company, society or provincial company or the insurance business in Canada of the foreign company is in a sound financial condition and, after the conclusion of each examination and inquiry, shall report on it to the Minister.
Marginal note:Examination need not be made annually
(2) If, in the opinion of the Superintendent, the circumstances so warrant in the case of a company, a provincial company or a foreign company that is not a fraternal benefit society, the examination and inquiry may be made less frequently than annually but not less frequently than triennially.
Marginal note:Examination need not be made annually
(2.1) If, in the opinion of the Superintendent, the circumstances so warrant in the case of a society or a foreign company that is a fraternal benefit society, the examination and inquiry may be made less frequently than annually.
457. The Act is amended by adding the following after the heading “Remedial Powers” after section 675:
Prudential Agreements
Marginal note:Prudential agreement
675.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with a company, society or provincial company for the purposes of implementing any measure designed to maintain or improve its safety and soundness or with a foreign company for the purposes of implementing any measure designed to protect the interests of its policyholders and creditors in respect of its insurance business in Canada.
458. Subsection 678(1) of the Act is replaced by the following:
Marginal note:Court enforcement
678. (1) Where a company, society, foreign company, provincial company or person
(a) is contravening or has failed to comply with a prudential agreement entered into under section 675.1 or a direction of the Superintendent issued to the company, society, foreign company, provincial company or person pursuant to subsection 676(1) or (3),
(b) is contravening this Act, or
(c) has omitted to do any thing under this Act that is required to be done by or on the part of the company, society, foreign company, provincial company or person,
the Superintendent may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the company, society, foreign company, provincial company or person to comply with the prudential agreement or direction, cease the contravention or do any thing that is required to be done, and on such application the court may so order and make any other order it thinks fit.
Marginal note:1996, c. 6, s. 95
459. The heading before section 678.1 of the Act is replaced by the following:
Disqualification and Removal
Meaning of “senior officer”
678.01 In sections 678.1 and 678.2, “senior officer” means the chief executive officer, secretary, treasurer, controller or actuary of a company, society or provincial company, or any other officer reporting directly to its board of directors or chief executive officer.
Marginal note:1996, c. 6, s. 95
460. (1) Paragraphs 678.1(1)(a) and (b) of the Act are replaced by the following:
(a) that has been notified by the Superintendent that this section applies to it where the company, society or provincial company is subject to measures designed to maintain or improve its safety and soundness, which measures
(i) have been specified by the Superintendent by way of conditions or limitations in respect of the order approving the commencement and carrying on of its business, or
(ii) are contained in a prudential agreement entered into under section 675.1 or an undertaking given by the company, society or provincial company to the Superintendent; or
(b) that is the subject of a direction made under section 676 or an order made under subsection 515(3) or 516(4).
Marginal note:1996, c. 6, s. 95
(2) Paragraph 678.1(2)(b) of the Act is replaced by the following:
(b) each person who has been selected by the company, society or provincial company for appointment as a senior officer, and
Marginal note:1996, c. 6, s. 95
(3) The portion of subsection 678.1(2) of the French version of the Act after paragraph (c) is replaced by the following:
Elle lui communique également les renseignements personnels qui les concernent et les renseignements sur leur expérience et leur dossier professionnel qu’il peut exiger.
Marginal note:1996, c. 6, s. 95
(4) Subsections 678.1(4) and (5) of the Act are replaced by the following:
Marginal note:Disqualification or removal
(4) If the Superintendent is of the opinion that, on the basis of the competence, business record, experience, conduct or character of a person, he or she is not suitable to hold that position, the Superintendent may, by order
(a) in the case of a person referred to in paragraph (2)(a) or (b), disqualify the person from being elected or appointed as a director of the company, society or provincial company or from being appointed as a senior officer; or
(b) in the case of a person referred to in paragraph (2)(c), remove the person from office as a director of the company, society or provincial company.
Marginal note:Risk of prejudice
(4.1) In forming an opinion under subsection (4), the Superintendent must consider whether the interests of the policyholders and creditors of the company, society or provincial company would likely be prejudiced if the person were to take office or continue to hold office, as the case may be.
Marginal note:Representations may be made
(5) The Superintendent must in writing notify the person concerned and the company, society or provincial company of any action that the Superintendent proposes to take under subsection (4) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
Marginal note:1996, c. 6, s. 95
(5) Subsection 678.1(6) of the English version of the Act is replaced by the following:
Marginal note:Prohibition
(6) Where an order has been made under subsection (4)
(a) disqualifying a person from being elected or appointed to a position, the person shall not be, and the company, society or provincial company shall not permit the person to be, elected or appointed to the position; or
(b) removing a director from office, the person shall not continue to hold, and the company, society or provincial company shall not permit the person to continue to hold, office as a director.
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