An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)
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Assented to 2007-03-29
PART 11991, c. 46AMENDMENTS TO THE BANK ACT
124. (1) Section 944 of the Act is amended by adding the following after subsection (1):
Marginal note:Approval of series of transactions
(1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not.
Marginal note:2001, c. 9, s. 183
(2) The portion of subsection 944(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
(2) Subsection (1) does not apply in respect of
Marginal note:2001, c. 9, s. 183
(3) Paragraph 944(2)(f) of the Act is replaced by the following:
(f) assets acquired or transferred under a transaction or series of transactions by a subsidiary of the bank holding company with a financial institution as a result of the subsidiary’s participation in one or more syndicated loans with that financial institution.
Marginal note:2001, c. 9, s. 183
(4) Paragraph 944(4)(b) of the Act is replaced by the following:
(b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the bank holding company prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the bank holding company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 840(4), immediately before the transfer.
Marginal note:2001, c. 9, s. 183
(5) Subsection 944(6) of the Act is replaced by the following:
Marginal note:Total value of all assets
(6) For the purposes of subsection (1), the total value of all assets that the bank holding company or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the bank holding company prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the bank holding company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 840(4), immediately before the transfer of the asset.
Marginal note:2001, c. 9, s. 183
125. Section 973 of the Act and the heading before it are replaced by the following:
Approvals
Definition of “approval”
973. In sections 973.01 to 973.06, “approval” includes any consent, designation, order, exemption, extension or other permission granted by the Minister or the Superintendent under this Act, and includes the issuance of letters patent.
Marginal note:Matters to take into account — Minister
973.01 (1) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval, take into account all matters that he or she considers relevant in the circumstances, including
(a) national security; and
(b) Canada’s international relations and its international legal obligations.
Marginal note:Matters to take into account — Superintendent
(2) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval and to any prudential considerations that the Superintendent considers relevant in the circumstances, the Superintendent may, in considering whether to grant the approval, take into account
(a) national security; and
(b) Canada’s international relations and its international legal obligations.
Marginal note:Minister — terms, conditions and undertakings
973.02 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it.
Marginal note:Superintendent — terms, conditions and undertakings
(2) In addition to any other action that may be taken under this Act, the Superintendent may, in granting an approval, impose any terms and conditions or require any undertaking that the Superintendent considers appropriate.
Marginal note:Revocation, suspension or amendment of approval — Minister
973.03 (1) The Minister may revoke, suspend or amend any approval granted by the Minister if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Minister may take into account all matters that he or she considers relevant in the circumstances, including
(a) national security; and
(b) Canada’s international relations and its international legal obligations.
Marginal note:Revocation, suspension or amendment of approval — Superintendent
(2) The Superintendent may revoke, suspend or amend any approval granted by the Superintendent if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Superintendent may take into account any prudential considerations that he or she considers relevant in the circumstances and
(a) national security; and
(b) Canada’s international relations and its international legal obligations.
Marginal note:Representations
(3) Before taking any action under this section, the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations.
Marginal note:Effect of non-compliance on approval
973.04 (1) Unless otherwise expressly provided in this Act, a failure to comply with a term, condition or undertaking imposed or required under any provision of this Act does not invalidate the approval to which the term, condition or undertaking relates.
Marginal note:Non-compliance
(2) In addition to any other action that may be taken under this Act, in the case of non-compliance by a person with a term, condition or undertaking imposed or required under any provision of this Act, the Minister or the Superintendent, as the case may be, may
(a) revoke, suspend or amend the approval to which the term, condition or undertaking relates; or
(b) apply to a court for an order directing the person to comply with the term, condition or undertaking, and on such an application the court may make the order and any other order that it thinks fit.
Marginal note:Representations
(3) Before taking any action under subsection (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations.
Marginal note:Revocation, suspension or amendment
(4) At the request of the person concerned, the Minister or the Superintendent, as the case may be, may revoke, suspend or amend any terms or conditions imposed by him or her and may revoke or suspend an undertaking given to him or her or approve its amendment.
Marginal note:Multiple approval — other approvals
973.05 The Minister or the Superintendent may grant more than one approval, other than letters patent, in a single instrument if he or she considers it appropriate to do so, and if the Minister or Superintendent does so, he or she may specify different effective dates for each of the approvals.
Marginal note:Exemption in relation to notices of intention
973.06 The Superintendent may, on application, exempt an applicant or applicants from the provisions of this Act respecting the publication of a notice of intention in respect of applications for approvals and impose any terms and conditions respecting the publication of the notice of intention that he or she considers appropriate.
Marginal note:2001, c. 9, s. 183
126. (1) The portion of subsection 976(1) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Demande d’approbation
976. (1) Doivent être accompagnées des renseignements, documents et éléments de preuve que peut exiger le surintendant les demandes suivantes qui lui sont présentées :
Marginal note:2001, c. 9, s. 183
(2) Paragraph 976(1)(c) of the Act is replaced by the following:
(c) applications for exemptions under subsection 156.05(3); and
Marginal note:2001, c. 9, s. 183
(3) Subsection 976(2) of the French version of the Act is replaced by the following:
Marginal note:Accusé de réception
(2) Le surintendant adresse sans délai au demandeur un accusé de réception précisant la date où la demande a été reçue.
127. The Act is amended by adding the following after section 976:
Applications for Certain Approvals
Marginal note:Application for certain approvals
976.1 (1) An application for the prior written approval of the Minister in respect of any of the following provisions must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require:
(a) paragraphs 410(1)(c) and (c.1);
(b) paragraphs 468(5)(c), (d) and (d.1);
(c) paragraphs 522.22(1)(c), (d) and (d.1);
(d) paragraphs 539(1)(b.1) and (b.2); and
(e) paragraphs 930(5)(c), (d) and (d.1).
Marginal note:Certification of receipt of application
(2) If, in the opinion of the Superintendent, the application contains all the required information, the Superintendent must refer it to the Minister, together with his or her analysis in relation to the application, and send a receipt to the applicant certifying the date on which the application was referred to the Minister.
Marginal note:Incomplete application
(3) If, in the opinion of the Superintendent, the application is incomplete, the Superintendent must send a notice to the applicant specifying the information required by the Superintendent to complete it.
Marginal note:Notice of decision
(4) Subject to subsection (5), the Minister must, within 30 days after the certified date referred to in subsection (2), send to the applicant
(a) a notice approving the application; or
(b) if the Minister is not satisfied that the application should be approved, a notice to that effect.
Marginal note:Extension of period
(5) If the Minister is unable to complete the consideration of an application within the 30-day period, the Minister must, within that period, send a notice to the applicant informing the applicant that the Minister has extended the period for a further period set out in the notice.
Marginal note:Deemed approval
(6) If the Minister does not send the notice referred to in subsection (4) or, where applicable, subsection (5), within the required period, the Minister is deemed to have approved the application.
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