Financial System Review Act (S.C. 2012, c. 5)
Full Document:
Assented to 2012-03-29
Marginal note:2007, c. 6, s. 37
51. (1) Subparagraph 459.4(a)(iv) of the Act is replaced by the following:
(iv) any other matter that may affect their dealings, or their employees’, representatives’, agents’ or other intermediaries’ dealings, with customers or the public;
Marginal note:2001, c. 9, s. 125
(2) Paragraph 459.4(b) of the Act is replaced by the following:
(b) the time and place at which, the form and manner in which and the persons to whom information is to be disclosed; and
Marginal note:2001, c. 9, s. 125
52. Section 459.5 of the Act is replaced by the following:
Marginal note:Affiliates
459.5 A bank shall not enter into any arrangement or otherwise cooperate with any of its representatives, agents or other intermediaries, with any of its affiliates that is controlled by a bank or a bank holding company and that is a finance entity as defined in subsection 464(1) or other prescribed entity or with any of the representatives, agents or other intermediaries of such an affiliate, to sell or further the sale of a product or service of the bank or the affiliate unless
(a) the affiliate or the representative, agent or other intermediary of the bank or the affiliate, as the case may be, complies, with respect to the product or service, with the consumer provisions that apply to banks — other than section 455.1 — as if they were a bank, to the extent that those provisions are applicable to their activities; and
(b) the persons who request or receive the product or service have access to the bank’s procedures for dealing with complaints established under this Act.
Marginal note:2007, c. 6, s. 40(3)
53. (1) Subsection 468(3.1) of the Act is replaced by the following:
Marginal note:Exception
(3.1) Despite paragraph (3)(a), a bank may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee for a trust if the entity has been permitted under the laws of a province to act as a trustee for a trust and the following conditions are satisfied:
(a) the entity acts as a trustee only with respect to a closed-end fund or mutual fund entity; and
(b) if the entity engages in other business, that 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 bank is permitted to engage in under paragraph 410(1)(c.2), and
(iii) the provision of investment counselling services and portfolio management services.
(2) Subsection 468(5) of the Act is amended by adding the following after paragraph (b):
(b.1) acquire control of an entity referred to in paragraph (1)(j) if the bank is a bank with equity of two billion dollars or more and
A + B > C
where
- A
- is the value of the entity’s consolidated assets, as it would have been reported in the entity’s annual financial statements if those statements had been prepared immediately before the acquisition,
- B
- is the aggregate of the values of the consolidated assets of all other entities referred to in paragraph (1)(j) that the bank has acquired control of within the preceding 12 months, as the value for each entity would have been reported in its annual financial statements if those statements had been prepared immediately before the acquisition of control of that entity, and
- C
- is 10% of the value of the bank’s consolidated assets, as shown in the bank’s last annual statement that was prepared before its first acquisition of control of an entity referred to in paragraph (1)(j) within the preceding 12 months;
(3) Section 468 of the Act is amended by adding the following after subsection (5):
Marginal note:Matters for consideration
(5.1) 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 under paragraph (5)(b.1), take into account all matters that he or she considers relevant in the circumstances, including
(a) the stability of the financial system in Canada; and
(b) the best interests of the financial system in Canada.
54. (1) Section 507 of the Act is amended by adding the following after subsection (1):
Definition of “foreign bank”
(1.1) For the purposes of this Part, “foreign bank” means a foreign bank as defined in section 2 but without regard to the portion of that definition after paragraph (g).
(2) Subsection 507(15) of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) is a subsidiary of a federal financial institution.
(3) Subsection 507(16) of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) is a subsidiary of a federal financial institution.
Marginal note:2007, c. 6, s. 59(3)
55. Subsection 522.08(2.1) of the Act is replaced by the following:
Marginal note:Exception
(2.1) Despite paragraph (2)(a), a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or acquire or increase a substantial investment in, any entity that acts as a trustee for a trust if the entity has been permitted under the laws of a province to act as a trustee for a trust and the following conditions are satisfied:
(a) the entity acts as a trustee only with respect to a closed-end fund or mutual fund entity; and
(b) if the entity engages in other business, that 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 bank is permitted to engage in under paragraph 410(1)(c.2), and
(iii) the provision of investment counselling services and portfolio management services.
56. Section 522.09 of the Act is amended by adding the following after subsection (3):
Marginal note:Exception — subsidiary of federal financial institution
(4) Subsections (1) to (3) do not apply to a foreign bank — or an entity associated with a foreign bank — that is a subsidiary of a federal financial institution.
57. Section 522.19 of the Act is amended by adding the following after subsection (2):
Marginal note:Exception — subsidiary of federal financial institution
(3) Subsection (1) does not apply to a foreign bank — or an entity associated with a foreign bank — that is a subsidiary of a federal financial institution.
58. Subsection 522.21(2) of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) is a subsidiary of a federal financial institution.
59. Subsection 522.211(2) of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) is a subsidiary of a federal financial institution.
Marginal note:1999, c. 28, s. 35(1)
60. The portion of subsection 540(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Requirements
(2) If subsection 524(2) applies, the authorized foreign bank shall, in accordance with the regulations,
Marginal note:2007, c. 6, s. 85
61. (1) The portion of subsection 545(4) of the Act before paragraph (a) is replaced by the following:
Marginal note:Notice before opening account or providing prescribed product
(4) Before an authorized foreign bank opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the authorized foreign bank shall, at the prescribed time and place and in the prescribed form and manner, give the person requesting the opening of the account or the provision of the product
Marginal note:2007, c. 6, s. 85
(2) The portion of subsection 545(5) of the Act before paragraph (a) is replaced by the following:
Marginal note:Other notice
(5) An authorized foreign bank shall, in accordance with the regulations,
Marginal note:1999, c. 28, s. 35(1)
(3) Paragraph 545(6)(b) of the Act is replaced by the following:
(b) prescribing the time and place at which and the form and manner in which notices referred to in subsection (4) are to be given and the other information to be contained in the notices; and
Marginal note:2009, c. 2, s. 273
62. Paragraph 552(3)(b) of the English version of the Act is replaced by the following:
(b) the time and place at which, the form and manner in which and the persons to whom information is to be disclosed; and
- Date modified: