Financial System Review Act (S.C. 2012, c. 5)
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Assented to 2012-03-29
PART 31991, c. 47INSURANCE COMPANIES ACT
Marginal note:2007, c. 6, s. 332
161. (1) Paragraph 1019.1(1)(b) of the Act is replaced by the following:
(b) paragraphs 495(7)(b.1), (c), (d) and (d.1);
Marginal note:2007, c. 6, s. 332
(2) Paragraph 1019.1(1)(e) of the Act is replaced by the following:
(e) paragraphs 971(5)(b.1), (c), (d) and (d.1).
PART 41991, c. 45TRUST AND LOAN COMPANIES ACT
Marginal note:2001, c. 9, s. 478(3)
162. The definition “consumer provision” in section 2 of the Trust and Loan Companies Act is replaced by the following:
“consumer provision”
« disposition visant les consommateurs »
“consumer provision” means a provision referred to in paragraph (d) or (d.1) of the definition “consumer provision” in section 2 of the Financial Consumer Agency of Canada Act;
Marginal note:2007, c. 6, s. 338
163. Section 20 of the Act is replaced by the following:
Marginal note:Sunset provision
20. (1) Subject to subsections (2) and (4), 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 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), 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.
164. Subsection 63(3) of the Act is repealed.
165. Subsection 396(2) of the Act is replaced by the following:
Marginal note:Exception
(2) Despite subsection (1), a company may record in its securities register a transfer or issue of any share of the company to a foreign institution that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share that is transferred or issued is beneficially owned by the foreign institution or by an entity controlled by the foreign institution.
166. Section 399 of the Act is amended by adding the following after subsection (2):
Marginal note:Exception
(2.1) Subsection (2) does not apply to a foreign institution that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the shares referred to in subsection (1) are beneficially owned by the foreign institution or by an entity controlled by the foreign institution.
Marginal note:2009, c. 2, s. 290
167. Paragraph 418.1(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
168. The portion of paragraph 429(a) of the Act before subparagraph (i) is replaced by the following:
(a) the time and place at which and the form and manner in which disclosure is to be made by a company of
169. Sections 432 and 433 of the Act are replaced by the following:
Marginal note:Disclosure of charges
432. A company shall disclose to its customers and to the public, at the prescribed time and place and in the prescribed form and manner, the charges applicable to deposit accounts with the company and the usual amount, if any, charged by the company for services normally provided by the company to its customers and to the public.
Marginal note:No increase or new charges without disclosure
433. (1) A company shall not increase any charge applicable to a personal deposit account with the company or introduce any new charge applicable to a personal deposit account with the company unless the company discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept.
Marginal note:Mandatory disclosure
(2) With respect to prescribed services in relation to deposit accounts, other than personal deposit accounts, a company shall not increase any charge for any such service in relation to a deposit account with the company or introduce any new charge for any such service in relation to a deposit account with the company unless the company discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept.
Marginal note:1997, c. 15, s. 379
170. Subsection 436(1) of the Act is replaced by the following:
Marginal note:Disclosing borrowing costs
436. (1) A company shall not make a loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 437, and other prescribed information have been disclosed by the company to the borrower at the prescribed time and place and in the prescribed form and manner.
Marginal note:1997, c. 15, s. 380(2)
171. (1) Paragraph 438(1)(c) of the Act is replaced by the following:
(c) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing or the loan agreement;
Marginal note:1997, c. 15, s. 380(2)
(2) Paragraph 438(1)(e) of the Act is replaced by the following:
(e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner.
Marginal note:1997, c. 15, s. 380(3)
(3) Subsection 438(1.1) of the Act is replaced by the following:
Marginal note:Disclosure in credit card applications
(1.1) A company shall, in accordance with the regulations, at the prescribed time and place and in the prescribed form and manner, provide prescribed information in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards and provide prescribed information to any person applying to it for a credit, payment or charge card.
Marginal note:1997, c. 15, s. 380(3)
(4) Paragraphs 438(2)(d) and (e) of the Act are replaced by the following:
(d) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing or the loan agreement; and
(e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner.
Marginal note:1997, c. 15, s. 380(3)
(5) Paragraphs 438(3)(d) and (e) of the Act are replaced by the following:
(d) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing under the arrangement; and
(e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner.
Marginal note:1997, c. 15, s. 381
172. Sections 438.1 and 439 of the Act are replaced by the following:
Marginal note:Renewal statement
438.1 If a company makes a loan in respect of which the disclosure requirements of section 436 apply and the loan is secured by a mortgage on real property, the company shall disclose to the borrower, at the prescribed time and place and in the prescribed form and manner, any information that is prescribed respecting the renewal of the loan.
Marginal note:Disclosure in advertising
439. No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to arrangements referred to in subsection 438(3), loans, credit cards, payment cards or charge cards, offered to natural persons by a company, and purporting to disclose prescribed information about the cost of borrowing or about any other matter unless the advertisement discloses prescribed information at the prescribed time and place and in the prescribed form and manner.
Marginal note:1997, c. 15, s. 381
173. (1) The portion of paragraph 440(a) of the Act before subparagraph (i) is replaced by the following:
(a) respecting the time and place at which, and the form and manner in which, a company is to disclose to a borrower
Marginal note:1997, c. 15, s. 381
(2) Paragraph 440(f) of the Act is replaced by the following:
(f) respecting the time and place at which, and the form and manner in which, any rights, obligations, charges or penalties referred to in sections 435.1 to 439 are to be disclosed;
Marginal note:2001, c. 9, s. 547(1)
174. Subsection 442(1) of the Act is replaced by the following:
Marginal note:Information on contacting Agency
442. (1) A company shall, in accordance with the regulations, at the prescribed time and place and in the prescribed form and manner, provide a person requesting or receiving a product or service from it with prescribed information on how to contact the Agency if the person has a complaint about a deposit account, an arrangement referred to in subsection 438(3), a payment, credit or charge card, the disclosure of or manner of calculating the cost of borrowing in respect of a loan or about any other obligation of the company under a consumer provision.
Marginal note:2009, c. 2, s. 291
175. Paragraph 443.2(b) of the Act is replaced by the following:
(b) the time and place at which and the form and manner in which any of those activities are to be carried out or any of those services are to be provided.
Marginal note:2001, c. 9, s. 548
176. Paragraphs 444.1(5)(a) and (b) of the Act are replaced by the following:
(a) the time and place at which and the form and manner in which notice shall be given under subsection (1), the persons to whom it shall be given and the information to be included, the time, place, form and manner being permitted to vary according to circumstances specified in the regulations;
(b) circumstances in which a member company is not required to give notice under subsection (1), circumstances in which the Commissioner may exempt a member company from the requirement to give notice under that subsection, and circumstances in which the Commissioner may vary the time and place at which and the form and manner in which notice is required to be given under any regulation made under paragraph (a); and
Marginal note:2001, c. 9, s. 548
177. (1) Subsections 444.2(2) and (3) of the Act are replaced by the following:
Marginal note:Filing
(2) A company shall, at the prescribed time and place and in the prescribed form and manner, file a copy of the statement with the Commissioner.
Marginal note:Provision of statement to public
(3) A company shall, at the prescribed time and place and in the prescribed form and manner, disclose the statement to its customers and to the public.
Marginal note:2001, c. 9, s. 548
(2) Paragraph 444.2(4)(a) of the Act is replaced by the following:
(a) the name, contents and form of a statement referred to in subsection (1) and the time within which, the place at which and the manner in which it must be prepared;
Marginal note:2001, c. 9, s. 548
(3) Paragraphs 444.2(4)(c) and (d) of the Act are replaced by the following:
(c) the time and place at which and the form and manner in which a statement must be filed under subsection (2); and
(d) the time and place at which and the form and manner in which a statement mentioned in subsection (3) is to be disclosed, respectively, to a company’s customers and to the public.
Marginal note:2001, c. 9, s. 548
178. Paragraph 444.3(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:2007, c. 6, s. 371(4)
179. (1) Subsection 453(3.1) of the Act is replaced by the following:
Marginal note:Exception
(3.1) Despite paragraph (3)(d), a company 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 company is permitted to engage in under paragraph 410(1)(d.1), and
(iii) the provision of investment counselling services and portfolio management services.
(2) Subsection 453(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 company is a company 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 company 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 company’s consolidated assets, as shown in the company’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 453 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.
180. Paragraph 505(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 company; and
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