An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)
Full Document:
Assented to 2007-03-29
Marginal note:1997, c. 15, s. 227
208. Sections 255 and 256 of the Act are replaced by the following:
Marginal note:Taking of effect of approval
255. A transaction referred to in subsection 254(2) or (2.01) has no effect until it has been approved by the Minister or the Superintendent, as the case may be.
Marginal note:1997, c. 15, s. 227
209. (1) Subsection 257(1) of the Act is replaced by the following:
Marginal note:Shareholder and policyholder approval
257. (1) A company or society proposing to transfer all or substantially all of its policies, to cause itself to be reinsured, on an assumption basis, against all or substantially all of the risks undertaken under its policies, or to sell all or substantially all of its assets shall submit the proposal for approval to a meeting of the shareholders and policyholders who are entitled to vote, or to a meeting of members, and, subject to subsection (3), to the holders of each class or series of shares.
Marginal note:Notice to Superintendent
(1.1) A company or society proposing to transfer all or substantially all of its policies must give notice of the proposal to the Superintendent.
Marginal note:Information
(1.2) After receiving the notice, the Superintendent may direct the company or society to provide its shareholders, policyholders and members with any information that the Superintendent may require.
Marginal note:1997, c. 15, s. 227
(2) Subsection 257(7) of the Act is replaced by the following:
Marginal note:Application to Minister
(7) Except in the case of a transaction to transfer all or substantially all of a company’s or society’s policies, the company or society shall, within three months after the approval of the transaction in accordance with subsection (5), apply to the Minister for approval of the transaction, unless the transaction is abandoned in accordance with subsection (6).
Marginal note:1997, c. 15, s. 227
210. Section 258 of the Act is replaced by the following:
Marginal note:Regulations
258. The Governor in Council may, for the purposes of section 254 or 257, make regulations respecting the circumstances in which companies or societies are deemed to be causing themselves to be reinsured, on an assumption basis, against risks undertaken under their policies.
211. Paragraph 261(1)(d) of the English version of the Act is replaced by the following:
(d) particulars of any authorizations, conditions and limitations established by the Superintendent under subsection 58(1) or (2) or 59(1) that are from time to time applicable to the company; and
Marginal note:2005, c. 54, s. 267
212. Section 268 of the Act is replaced by the following:
Marginal note:Requirement to maintain copies and process information in Canada
268. (1) If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for a company to maintain, in another country, copies of records referred to in section 261 or of its central securities register or for a company to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for a company to do any of those activities in another country — the Superintendent shall direct the company to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada.
Marginal note:Company to comply
(2) A company shall without delay comply with any direction issued under subsection (1).
Marginal note:1991, c. 47, par. 758(c)
213. Section 323 of the Act is replaced by the following:
Marginal note:Trustee qualifications
323. A trustee, or at least one of the trustees if more than one is appointed, must be
(a) a trust company pursuant to subsection 57(2) of the Trust and Loan Companies Act; or
(b) a body corporate that is incorporated by or under an Act of the legislature of a province and authorized to carry on business as a trustee.
214. Subsection 346(3) of the Act is replaced by the following:
Marginal note:Reliance on actuary
(3) An auditor of a company may, in conducting the examination referred to in subsection (1), use the valuation by the actuary of the company, or by any other actuary, of
(a) the actuarial and other policy liabilities of the company as at the end of a financial year; and
(b) the increase in the actuarial liabilities of the company for a financial year.
Marginal note:Actuarial practices
(4) A valuation by an actuary other than the actuary of the company may be used only if it was done in accordance with generally accepted actuarial practice and with any changes that may have been determined by the Superintendent and by following any additional directions that may have been made by the Superintendent.
215. (1) The portion of subsection 407(1) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Restrictions à l’acquisition
407. (1) Il est interdit à une personne — ou à l’entité qu’elle contrôle — d’acquérir, sans l’agrément du ministre, des actions d’une société ou le contrôle d’une entité qui détient de telles actions si l’acquisition, selon le cas :
(2) Subsection 407(2) of the Act is replaced by the following:
Marginal note:Amalgamation, etc., constitutes acquisition
(2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares of a company, the entity is deemed to be acquiring a significant interest in that class of shares of the company through an acquisition for which the approval of the Minister is required under subsection (1).
Marginal note:1997, c. 15, s. 242
216. Section 407.1 of the Act is replaced by the following:
Marginal note:No acquisition of control without approval
407.1 (1) No person shall acquire control, within the meaning of paragraph 3(1)(d), of a company without the approval of the Minister.
Marginal note:Amalgamation, etc., constitutes acquisition
(2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), a company, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the company through an acquisition for which the approval of the Minister is required under subsection (1).
Marginal note:2001, c. 9, s. 416(2)
217. Subsection 441(1.1) of the English version of the Act is replaced by the following:
Marginal note:Additional activities — life companies
(1.1) A life company may engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services.
Marginal note:1997, c. 15, s. 248
218. Sections 445 and 446 of the Act are replaced by the following:
Marginal note:No new composite companies
445. The Superintendent may not make or vary an order approving the commencement and carrying on of business by a company if the company would as a result be permitted to insure both risks falling within the class of life insurance and risks falling within any other class of insurance other than accident and sickness insurance, credit protection insurance and other approved products insurance.
219. Section 448 of the Act is replaced by the following:
Marginal note:Annuities and endowment insurance restricted to life companies
448. Property and casualty companies and marine companies shall not issue annuities or policies of endowment insurance.
Marginal note:1996, c. 6, s. 79
220. (1) Subsections 449(1) and (1.1) of the Act are replaced by the following:
Marginal note:Compensation association
449. (1) Every company that is insuring risks that fall within a class of insurance shall become and remain a member of any compensation association designated by order of the Minister for that class of insurance.
Marginal note:Designation limitation
(1.1) A compensation association shall not be designated under subsection (1) unless, in the opinion of the Minister, it has the authority to levy an assessment on each of its members.
(2) Paragraph 449(2)(c) of the Act is replaced by the following:
(c) in respect of the insurance against the loss of, or damage to, property caused by fire, by lightning, by an explosion due to ignition, by smoke or by breakage of or leakage from a sprinkler, from other fire protection equipment or from another fire protection system by a company that is a member of the Fire Mutuals Guarantee Fund; or
221. Section 450 of the Act is replaced by the following:
Marginal note:Segregated funds restricted to life companies
450. A property and casualty company, or a marine company, shall not issue policies — or accept or retain, on the direction of a policyholder or beneficiary, policy dividends or bonuses, or policy proceeds that are payable on the surrender or maturity of the policy or on the death of the person whose life is insured — if the liabilities of the company in respect of the policies or the amounts accepted or retained vary in amount depending on the market value of a fund consisting of a specified group of assets.
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