Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)
Full Document:
Assented to 2001-06-14
481. Sections 4 and 5 of the Act are replaced by the following:
Marginal note:Holding body corporate
4. A body corporate is the holding body corporate of any entity that is its subsidiary.
Marginal note:Subsidiary
5. An entity is a subsidiary of another entity if it is controlled by the other entity.
482. Subsection 6(2) of the Act is replaced by the following:
Marginal note:Affiliated entities
(2) Despite subsection (1), for the purposes of subsections 270(1) and 288(1), one entity is affiliated with another entity if one of them is controlled, determined without regard to paragraph 3(1)(d), by the other or both are controlled, determined without regard to paragraph 3(1)(d), by the same person.
483. The portion of subsection 9(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Acting in concert
9. (1) For the purposes of Part VII, if two or more persons have agreed, under any agreement, commitment or understanding, whether formal or informal, verbal or written, to act jointly or in concert in respect of
Marginal note:1997, c. 15, s. 341
484. Section 20 of the Act is replaced by the following:
Marginal note:Sunset provision
20. (1) Subject to subsection (2), companies shall not carry on business after the day that is five years after this section comes into force, except that if Parliament dissolves on that day or at any time within the three-month period before that day, companies may continue to carry on business, until the day that is one hundred and eighty days after the first day of the first session of the next Parliament.
Marginal note:Extension
(2) The Governor in Council may, by order, extend by up to six months the time during which companies may continue to carry on business. No more than one order may be made under this subsection.
485. Section 23 of the Act is replaced by the following:
Marginal note:Subsidiary of foreign institution
23. If a proposed company would be a subsidiary of a foreign institution that is engaged in trust or loan business and the application for letters patent to incorporate the company is made by a non-WTO Member foreign institution, letters patent to incorporate the company may not be issued unless the Minister is satisfied that treatment as favourable for companies to which this Act applies exists or will be provided in the jurisdiction in which the foreign institution principally carries on business, either directly or through a subsidiary.
486. Section 26 of the Act is replaced by the following:
Marginal note:Matters for consideration
26. Before issuing letters patent to incorporate a company, the Minister shall take into account all matters that the Minister considers relevant to the application, including
(a) the nature and sufficiency of the financial resources of the applicant or applicants as a source of continuing financial support for the company;
(b) the soundness and feasibility of the plans of the applicant or applicants for the future conduct and development of the business of the company;
(c) the business record and experience of the applicant or applicants;
(d) the character and integrity of the applicant or applicants or, if the applicant or any of the applicants is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good character and integrity;
(e) whether the company will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
(f) the impact of any integration of the businesses and operations of the applicant or applicants with those of the company on the conduct of those businesses and operations; and
(g) the best interests of the financial system in Canada.
Marginal note:1991, c. 45, par. 559(a); 1994, c. 24, par. 34(1)(g)(F); 1997, c. 15, s. 343
487. Section 38 of the Act is replaced by the following:
Marginal note:Transferring to other federal Acts
38. (1) A company may
(a) apply, with the approval in writing of the Minister, for a certificate of continuance under section 187 of the Canada Business Corporations Act;
(b) apply for letters patent continuing the company as a bank under subsection 35(1) of the Bank Act or amalgamating and continuing the company as a bank under subsections 223(1) and 229(1) of that Act; or
(c) apply for letters patent continuing the company as an association under subsection 31.1(1) of the Cooperative Credit Associations Act if
(i) the company’s shareholders are limited to entities incorporated or formed by or under an Act of Parliament or of the legislature of a province that are, in the opinion of the Minister, operating as credit unions or cooperative associations, and
(ii) the application for letters patent complies with prescribed terms and conditions, if any are prescribed.
Marginal note:Conditions for approval
(2) No approval referred to in paragraph (1)(a) may be given to a company unless the Minister is satisfied that
(a) the application has been authorized by a special resolution;
(b) the company
(i) holds no deposits that are insured under the Canada Deposit Insurance Corporation Act, and
(ii) is not carrying on any of the fiduciary activities referred to in section 412;
and
(c) unless authorized pursuant to section 48, the company will not use the word “fiduciaire”, “fiduciary”, “fiducie”, “loan”, “loanco”, “prêt”, “trust” or “trustco” in its name after a certificate of continuance in respect of the company is issued under the Canada Business Corporations Act.
Marginal note:1996, c. 6, s. 113
488. Section 43 of the Act is replaced by the following:
Marginal note:Affiliated company
43. Despite section 41, a company that is affiliated with another entity may, with the consent of that entity and the approval of the Superintendent, be incorporated with, or change its name to, substantially the same name as that of the affiliated entity.
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