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
292. Sections 616 to 619 of the Act are replaced by the following:
Marginal note:Lending limit — foreign life companies
616. (1) The total accepted value of commercial loans vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Lending limit — foreign composite companies
(2) The total accepted value of the commercial loans and loans to natural persons vested in trust by a foreign life company for the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Consumer and Commercial Lending by Foreign Property and Casualty Companies and Foreign Marine Companies
Marginal note:Lending limit — foreign property and casualty companies and foreign marine companies
617. The total accepted value of the commercial loans and loans to natural persons vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.
Real Property
Marginal note:Limit on total property interest — foreign life companies
618. (1) The total accepted value of interests in real property vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Limit on total property interest — foreign composite companies
(2) The total accepted value of interests in real property vested in trust by a foreign life company for the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Limit on total property interest — foreign property and casualty companies and foreign marine companies
(3) The total accepted value of interests in real property vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.
Equities
Marginal note:Limit on equity acquisitions — foreign life companies
619. (1) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Limit on equity acquisitions — foreign composite companies
(2) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign life company for the classes of insurance, other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Limit on equity acquisitions — foreign property and casualty companies and foreign marine companies
(3) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.
293. The portion of section 622 of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
622. A foreign company may vest in trust an asset if the asset was acquired through a transaction described in any of sections 524 to 533 and
294. The heading before section 633 of the Act is replaced by the following:
Interpretation
Marginal note:Definitions
632.1 In sections 634 to 643, the expressions “firm of accountants” and “member” have the meanings assigned to those expressions by section 336.
Appointment
295. Subsection 634(3) of the English version of the Act is replaced by the following:
Marginal note:Notice of designation
(3) Within 15 days after the appointment of a firm of accountants as auditor of a foreign company, the foreign company and the firm of accountants shall jointly designate a member of the firm who meets the qualifications described in subsection (1) to conduct the audit of the foreign company on behalf of the firm and the foreign company shall without delay notify the Superintendent in writing of the designation.
296. Subsection 643(2) of the Act is replaced by the following:
Marginal note:Special examination
(2) In respect of the insurance business in Canada of a foreign company, the Superintendent may, in writing, require that the auditor of the foreign company make a particular examination relating to the adequacy of the procedures adopted by the foreign company for the safety of its creditors and policyholders, or any other examination that, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent on the examination.
297. (1) Paragraph 647(1)(c) of the Act is replaced by the following:
(c) with respect to its insurance business in Canada, records showing, for each customer of, or claimant under a policy issued by, the foreign company, the amount owing to the foreign company and the nature of the liabilities of the foreign company to the customer or claimant.
(2) Subsection 647(2) of the English version of the Act is replaced by the following:
Marginal note:Standards for record keeping
(2) The records described in paragraphs (1)(b) and (c) shall be kept in a manner that enables the chief agent of the foreign company to provide the Superintendent with the information required by section 664 and with the annual return required by subsection 665(2).
Marginal note:1996, c. 6, s. 90 and par. 167(1)(h)
298. The heading before section 650 and sections 650 to 655 of the Act are replaced by the following:
Release of Assets
Marginal note:Application for release of assets in Canada
650. A foreign company that proposes to cease to insure in Canada risks may apply to the Superintendent for the release of its assets in Canada.
Marginal note:Conditions of release
651. Except as otherwise provided in this Act, the Superintendent may, by order, authorize the release of the assets in Canada of a foreign company if the foreign company
(a) has, in respect of its policies,
(i) obtained their surrender,
(ii) transferred them,
(iii) caused itself to be reinsured, on an assumption basis, against the risks undertaken under them, or
(iv) otherwise discharged its liabilities under them, or provided for their discharge in a manner satisfactory to the Superintendent;
(b) has discharged all of its obligations, other than liabilities under its policies, or provided for them in a manner satisfactory to the Superintendent; and
(c) has provided the Superintendent with proof of the publication, for four consecutive weeks, in the Canada Gazette and in at least one newspaper of general circulation at or near the place where the chief agency of the foreign company is situated, of a notice that it will apply to the Superintendent for the release of its assets in Canada on a day specified in the notice, which must be at least six weeks after the date of the notice, and calling on its creditors and policyholders opposing that release to file their opposition with the Superintendent on or before the day.
Marginal note:Release of assets to liquidator
652. Despite sections 650 and 651, the assets in Canada of a foreign company that is in liquidation may, on the order of any court having jurisdiction under the Winding-up and Restructuring Act, be released to the liquidator.
Marginal note:Revocation of order
653. The Superintendent may revoke the order made under subsection 574(1) in respect of a foreign company if in the opinion of the Superintendent the foreign company is not insuring in Canada risks, or if the foreign company does not
(a) provide information to the Superintendent as required by section 664;
(b) provide the annual return to the Superintendent as required by section 665;
(c) permit the examination authorized by section 648 or 674; or
(d) provide any information in its possession or control that is requested for the purpose of any such examination.
Marginal note:Deemed revocation
654. An order made under subsection 574(1) in respect of a foreign company is deemed to be revoked when an order is made under section 651 or 652 authorizing the release of its assets in Canada.
299. Subsection 665(3) of the Act is repealed.
Marginal note:2001, c. 9, s. 460(1)
300. Paragraph 678.1(1)(b) of the Act is replaced by the following:
(b) that is the subject of a direction made under section 676 or an order made under subsection 515(3).
Marginal note:2001, c. 9, s. 461
301. Subparagraph 678.2(1)(b)(iii) of the Act is replaced by the following:
(iii) an order made under subsection 515(3),
- Date modified: