Financial System Review Act (S.C. 2012, c. 5)
Full Document:
Assented to 2012-03-29
Marginal note:1999, c. 28, s. 35(1)
74. Paragraph 613(2)(a) of the Act is replaced by the following:
(a) has a right of access to any records, cash, assets and security held by or on behalf of an authorized foreign bank; and
75. The Act is amended by adding the following after section 634:
Marginal note:Certificate
634.1 On the application of a bank that has been incorporated by a special Act of Parliament, the Superintendent may issue a certificate stating that the bank was incorporated by a special Act of Parliament, and may include with the certificate any information in the Superintendent’s possession that relates to the bank’s incorporation.
76. Paragraph 643(2)(a) of the Act is replaced by the following:
(a) has a right of access to any records, cash, assets and security held by or on behalf of a bank; and
Marginal note:2007, c. 6, s. 105
77. Section 670 of the Act is replaced by the following:
Marginal note:Sunset provision
670. (1) Subject to subsections (2) and (4), bank holding companies shall not carry on business after the day that is the fifth anniversary of the day on which this section comes into force.
Marginal note:Extension
(2) The Governor in Council may, by order, extend by up to six months the time during which bank holding companies may continue to carry on business. No more than one order may be made under this subsection.
Marginal note:Order not a regulation
(3) The order is not a regulation for the purposes of the Statutory Instruments Act. However, it shall be published in Part II of the Canada Gazette.
Marginal note:Exception
(4) If Parliament dissolves on the fifth anniversary of the day on which this section comes into force, on any day within the six-month period before that anniversary or on any day within an extension under subsection (2), bank holding companies may continue to carry on business until the end of 180 days after the first day of the first session of the next Parliament.
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(v)
78. Subsection 727(2) of the Act is replaced by the following:
Marginal note:Number of eligible votes
(2) A bank holding company with equity of twelve billion dollars or more shall set out in the notice of a meeting the number of eligible votes, as defined under subsection 156.09(1), that may be cast at the meeting as of the record date for determining those shareholders entitled to receive the notice of meeting, or if there are to be separate votes of shareholders at the meeting, the number of eligible votes, as defined in that subsection, in respect of each separate vote to be held at the meeting.
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(w)
79. Subsection 756(4) of the Act is replaced by the following:
Marginal note:Exception
(4) Subsection (2) does not apply to a widely held bank holding company with equity of twelve billion dollars or more or to a widely held bank holding company that controls a bank to which subsection 378(1) applies.
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(x)
80. The portion of subsection 803(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Restriction
(3) Despite subsection (1), if the amalgamated bank holding company would be a bank holding company with equity of twelve billion dollars or more, the Minister shall not issue letters patent referred to in that subsection unless the amalgamated bank holding company is
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(y)
81. Section 876 of the Act is replaced by the following:
Marginal note:Limitations on share holdings
876. (1) No person may be a major shareholder of a bank holding company with equity of twelve billion dollars or more.
Marginal note:Exception — widely held bank
(2) Subsection (1) does not apply to a widely held bank that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank holding company with equity of twelve billion dollars or more if it controlled, within the meaning of those paragraphs, the bank holding company on the day the bank holding company’s equity reached twelve billion dollars and it has controlled, within the meaning of those paragraphs, the bank holding company since that day.
Marginal note:Exception — widely held bank holding company
(3) Subsection (1) does not apply to a widely held bank holding company that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank holding company with equity of twelve billion dollars or more if the widely held bank holding company controlled, within the meaning of those paragraphs, the bank holding company on the day the bank holding company’s equity reached twelve billion dollars and the widely held bank holding company has controlled, within the meaning of those paragraphs, the bank holding company since that day.
Marginal note:Exception — insurance holding companies and certain institutions
(4) Subsection (1) does not apply to any of the following that controls, within the meaning of paragraph 3(1)(d), the bank holding company with equity of twelve billion dollars or more if it controlled, within the meaning of that paragraph, the bank holding company on the day the bank holding company’s equity reached twelve billion dollars and it has controlled, within the meaning of that paragraph, the bank holding company since that day:
(a) a widely held insurance holding company;
(b) an eligible Canadian financial institution, other than a bank; or
(c) an eligible foreign institution.
Marginal note:Exception — other entities
(5) Subsection (1) does not apply to an entity that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank holding company with equity of twelve billion dollars or more if the entity is controlled, within the meaning of those paragraphs, by a widely held bank to which subsection (2) applies, or a widely held bank holding company to which subsection (3) applies, that controls the bank holding company.
Marginal note:Exception — other entities
(6) Subsection (1) does not apply to an entity that controls, within the meaning of paragraph 3(1)(d), the bank holding company with equity of twelve billion dollars or more if the entity is controlled, within the meaning of that paragraph, by
(a) a widely held insurance holding company to which subsection (4) applies that controls the bank holding company;
(b) an eligible Canadian financial institution, other than a bank, to which subsection (4) applies that controls the bank holding company; or
(c) an eligible foreign institution to which subsection (4) applies that controls the bank holding company.
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(z)
82. Subsection 877(1) of the Act is replaced by the following:
Marginal note:Exception
877. (1) Despite section 876, if a bank holding company with equity of twelve billion dollars or more was formed as the result of an amalgamation, a person who is a major shareholder of the bank holding company on the effective date of the letters patent of amalgamation shall do all things necessary to ensure that the person is no longer a major shareholder of the bank holding company on the day that is one year after that day or on the day that is after any shorter period specified by the Minister.
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(z.1)
83. Subsection 878(1) of the Act is replaced by the following:
Marginal note:Limitation on share holdings
878. (1) If a person is a major shareholder of a bank holding company with equity of less than twelve billion dollars and the bank holding company’s equity reaches twelve billion dollars or more, the person shall do all things necessary to ensure that the person is not a major shareholder of the bank holding company on the day that is three years after the day the bank holding company’s equity reached twelve billion dollars.
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(z.2)
84. The portion of subsection 879(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Obligation of widely held bank holding company
879. (1) If a widely held bank holding company with equity of twelve billion dollars or more controls a bank and a person becomes a major shareholder of the bank or of any entity that also controls the bank, the widely held bank holding company must do all things necessary to ensure that, on the day that is one year after the person became a major shareholder of the bank or entity that controls it,
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(z.3)
85. The portion of subsection 879.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Obligation of widely held bank holding company
879.1 (1) Despite subsection 879(1), if a widely held bank holding company with equity of twelve billion dollars or more controls a bank in respect of which that subsection does not apply by reason of subsection 879(2) and the equity of the bank reaches two hundred and fifty million dollars or more or any other amount that is prescribed and on the day the equity of the bank reaches two hundred and fifty million dollars or more or the prescribed amount, as the case may be, a person is a major shareholder of the bank or of any entity that also controls the bank, the widely held bank holding company must do all things necessary to ensure that, on the day that is three years after that day,
Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(z.4)
86. Sections 880 and 881 of the Act are replaced by the following:
Marginal note:Prohibition against significant interest
880. No person who has a significant interest in any class of shares of a widely held bank holding company with equity of twelve billion dollars or more may have a significant interest in any class of shares of a subsidiary of the widely held bank holding company that is a bank or a bank holding company.
Marginal note:Prohibition against significant interest
881. No person who has a significant interest in any class of shares of a bank holding company may have a significant interest in any class of shares of any widely held bank with equity of twelve billion dollars or more, or of any widely held bank holding company with equity of twelve billion dollars or more, that controls the bank holding company.
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