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. 285
251. Subsection 542.06(1) of the Act is replaced by the following:
Marginal note:Residential mortgages restriction
542.06 (1) A society shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving the property, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan.
252. Section 552 of the Act is amended by adding the following after subsection (4):
Marginal note:Application of other provision
(5) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a society may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met.
Marginal note:Timing of deemed acquisition
(6) If a society decides to exercise its right under subsection (5), the society is deemed to be acquiring the control or the substantial investment under the other provision.
Marginal note:2001, c. 9, s. 437
253. (1) Paragraph 554(1)(c) of the French version of the Act is replaced by the following:
c) une entité qui est constituée ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations d’assurance.
Marginal note:2001, c. 9, s. 437
(2) Paragraph 554(2)(e) of the Act is replaced by the following:
(e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity” or “mutual fund entity” in subsection 490(1); and
(3) Section 554 of the Act is amended by adding the following after subsection (3):
Marginal note:Exception
(3.1) Despite paragraph (3)(a), a society may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is
(a) a closed-end fund;
(b) a mutual fund entity; or
(c) an entity whose business is limited to engaging in one or more of the following:
(i) the activities of a mutual fund distribution entity,
(ii) any activity that a company is permitted to engage in under subsection 441(1.1), and
(iii) the provision of investment counselling services and portfolio management services.
Marginal note:2001, c. 9, s. 437
254. Subsection 557(4) of the Act is replaced by the following:
Marginal note:Temporary investment
(4) If a society, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 554(5) if the society had acquired the control, or acquired or increased the substantial investment, under section 554, the society must, within 90 days after acquiring control or after acquiring or increasing the substantial investment,
(a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or
(b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity.
255. (1) Section 569 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. 440
(2) The portion of subsection 569(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. 440
(3) The portion of subsection 569(3) of the Act before paragraph (b) is replaced by the following:
Marginal note:Exception
(3) The approval of the Superintendent under this section is not required if
(a) the society sells or transfers assets under a transaction that is approved by the Minister or the Superintendent under subsection 254(2) or (2.01);
Marginal note:2001, c. 9, s. 440
(4) Paragraph 569(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 society 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 society if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer.
Marginal note:2001, c. 9, s. 440
(5) Subsection 569(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 society 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 society 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 society if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer of the asset.
256. (1) The definitions “foreign life company” and “foreign property and casualty company” in section 571 of the Act are replaced by the following:
“foreign life company”
« société d’assurance-vie étrangère »
“foreign life company” means a foreign company that is authorized to insure risks that fall within the class of life insurance;
“foreign property and casualty company”
« société d’assurances multirisques étrangère »
“foreign property and casualty company” means a foreign company other than a foreign life company or a foreign marine company;
(2) Section 571 of the Act is amended by adding the following in alphabetical order:
“foreign entity”
« entité étrangère »
“foreign entity” means an entity incorporated or formed by or under the laws of a country other than Canada, and includes an association and an exchange;
“foreign marine company”
« société d’assurance maritime étrangère »
“foreign marine company” means a foreign company that is authorized to solely insure risks within the class of marine insurance;
257. Section 572 of the Act is replaced by the following:
Marginal note:Application — insurance business in Canada
572. This Part applies only in respect of the insurance business in Canada of a foreign entity.
Marginal note:Exception
572.1 Despite section 572, this Part does not apply in respect of the insurance against injury to persons or loss of or damage to property, or liability for such injury, loss or damage, caused by nuclear energy, including ionizing radiation and contamination by radioactive substances, to the extent that, in the opinion of the Superintendent, that insurance is not available within Canada.
258. The heading before section 573 of the Act is replaced by the following:
Insurance of Risks
Marginal note:1997, c. 15, s. 300(F)
259. (1) Subsections 573(1) to (4) of the Act are replaced by the following:
Marginal note:Restriction on insuring of risks unless authorized
573. (1) A foreign entity shall not insure in Canada a risk unless it is authorized by order made under subsection 574(1).
Marginal note:Restriction to specified classes of insurance
(2) A foreign company shall not insure in Canada a risk unless the risk falls within a class of insurance that is specified in the order made under subsection 574(1) in respect of the foreign company.
Marginal note:Restriction on issuance of annuities or endowment insurance
(3) Unless authorized to insure in Canada risks falling within the class of life insurance, a foreign company shall not issue annuities or policies of endowment insurance in Canada.
Marginal note:Transitional
(4) A certificate of registry issued to a foreign entity under the Foreign Insurance Companies Act or Part VIII of the Canadian and British Insurance Companies Act, or any other authorization, that had not expired or been withdrawn before June 1, 1992 is deemed to be an order made under subsection 574(1) and the foreign entity remains subject to any and all other conditions and limitations contained in the certificate or other authorization.
(2) Subsection 573(5) of the French version of the Act is replaced by the following:
Marginal note:Maintien des branches d’assurance
(5) La branche d’assurance énoncée dans le certificat d’enregistrement ou l’autre autorisation de fonctionnement visés au paragraphe (4) est réputée être énoncée dans l’agrément autorisant la société étrangère à garantir au Canada des risques.
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