Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)

external complaints body

external complaints body means a body corporate approved under subsection 627.48(1) or designated under subsection 627.51(1); (organisme externe de traitement des plaintes)

• (e) designate a committee of the board of directors to perform the duties set out in section 195.1; and

Marginal note:Committee

• 195.1 (1) The committee designated under paragraph 157(2)(e) shall consist of at least three directors.

• Marginal note:Membership

  (2) A majority of the members of the committee shall consist of directors who are not persons affiliated with the bank, and none of the members of the committee may be officers or employees of the bank or a subsidiary of the bank.

• Marginal note:Duties of committee

  (3) The committee shall

  • (a) require the management of the bank to establish procedures for complying with the consumer provisions;

  • (b) review those procedures to determine whether they are appropriate to ensure that the bank is complying with the consumer provisions; and

  • (c) require the management of the bank to report at least annually to the committee on the implementation of the procedures and on any other activities that the bank carries out in relation to the protection of its customers.

• Marginal note:Bank’s report to Commissioner

  (4) A bank shall report to the Commissioner on the mandate and responsibilities of the committee and the procedures referred to in paragraph (3)(a).

• Marginal note:Committee’s report to directors

  (5) After each meeting of the committee, the committee shall report to the directors of the bank on matters reviewed by the committee.

• Marginal note:Directors’ report to Commissioner

  (6) Within 90 days after the end of each financial year, the directors of a bank shall report to the Commissioner on what the committee did during the year in performing its duties under subsection (3).

Marginal note:Auditors’ attendance

• 330 (1) The auditors of a bank are entitled to receive notice of every meeting of the committee designated under paragraph 157(2)(e), if that committee is to perform the duties set out in section 195.1 in that meeting, of the audit committee and of the conduct review committee and, at the expense of the bank, to attend and be heard at that meeting.

Miscellaneous

• Marginal note:Restrictions and requirements

  (2) The order may be made subject to the restrictions referred to in subsection 540(1) and the requirements referred to in section 627.74.

• (b) sections 627.68 to 627.72 and 627.85.

Miscellaneous

Marginal note:Exceptions to disclosure

611 Subject to any regulations made under paragraph 627.998(n), information obtained by an authorized foreign bank regarding any of its customers shall not be disclosed or made available under subsection 609(1) or section 610.

PART XII.2Dealings with Customers and the Public

DIVISION 1Interpretation

Marginal note:Definitions

• 627.01 (1) The following definitions apply in this Part.

  business day

  business day does not include a Saturday or a holiday. (jour ouvrable)

  charge

  charge includes interest and, for greater certainty, a fee. (frais)

  complaint

  complaint means dissatisfaction, whether justified or not, expressed to an institution with respect to

  • (a) a product or service in Canada that is offered, sold or provided by the institution; or

  • (b) the manner in which a product or service in Canada is offered, sold or provided by the institution. (plainte)

  credit agreement

  credit agreement includes an agreement for a line of credit, a credit card or any other kind of loan that is repayable in Canada. (convention de crédit)

  deposit-type instrument

  deposit-type instrument means a product that is issued in Canada by an institution, that is related to a deposit and that specifies a fixed investment period and either

  • (a) a fixed rate of interest; or

  • (b) a variable rate of interest that is calculated on the basis of the institution’s prime lending rate or bankers’ acceptance rate. (instrument de type dépôt)

  eligible enterprise

  eligible enterprise means a business with authorized credit of less than $1,000,000, fewer than 500 employees and annual revenues of less than $50,000,000. (entreprise admissible)

  institution

  institution means a bank or an authorized foreign bank. (institution)

  interest

  interest, in relation to an agreement for a deposit-type instrument, a principal-protected note or a prescribed product, includes any return payable by an institution under the agreement. (intérêt)

  maintenance charge

  maintenance charge means a charge in relation to a prepaid payment product that is imposed after the product has been purchased, other than a charge associated with the use of the product or of any service related to it. (frais de tenue de compte)

  member bank

  member bank means a bank that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act. (banque membre)

  optional product or service

  optional product or service means a product or service that is provided in Canada by an institution, an affiliate that the institution controls or an agent or representative of the institution or affiliate, for an additional charge, as a supplement to another product or service that is offered or provided by the institution. (produit ou service optionnel)

  personal authentication information

  personal authentication information means a personal identification number or any other password or information that a borrower creates or adopts to be used to authenticate their identity in relation to a credit card or credit card account. (authentifiant personnel)

  personal deposit account

  personal deposit account means a deposit account in the name of one or more natural persons that is kept by that person or those persons other than for business purposes. (compte de dépôt personnel)

  point of service

  point of service means a physical location to which the public has access and at which an institution carries on business with the public through natural persons in Canada. (point de service)

  prepaid payment product

  prepaid payment product means a physical or electronic product that is issued in Canada by an institution, that is or can be loaded with funds and that can be used to make withdrawals or purchase goods or services. (produit de paiement prépayé)

  principal-protected note

  principal-protected note means a financial instrument that is issued in Canada by an institution to a person and that

  • (a) provides for one or more payments to be made by the institution that are determined, in whole or in part, by reference to an index or reference point, including

    • (i) the market price of a security, commodity, investment fund or other financial instrument, and

    • (ii) the exchange rate between any two currencies; and

  • (b) provides that the principal amount that the institution is obligated to repay at or before the note’s maturity is equal to or greater than the total paid by the person for the note.

  A principal-protected note does not include a financial instrument that specifies that the interest or return on the instrument is determined solely on the basis of a fixed rate of interest or return or a variable rate of interest or return that is calculated on the basis of the institution’s prime lending rate or bankers’ acceptance rate. (billet à capital protégé)

  promotional product

  promotional product means a prepaid payment product that is purchased by an entity and distributed as part of a promotional, loyalty or award program. (produit promotionnel)

  registered product

  registered product means a registered education savings plan, a registered retirement savings plan, a registered retirement income fund, a registered disability savings plan or any other plan, arrangement or fund to which Division G of Part I of the Income Tax Act applies that is provided by an institution to a natural person. (produit enregistré)

  residential mortgage

  residential mortgage means a loan made in Canada on the security of residential property that has four or fewer residential units. (hypothèque résidentielle)

  retail deposit account

  retail deposit account means a personal deposit account that is opened with a deposit of less than $150,000 or of less than any greater prescribed amount. (compte de dépôt de détail)

  retail deposit-taking branch

  retail deposit-taking branch means a branch or office in Canada of a financial institution at which the financial institution, through a natural person, opens retail deposit accounts and disburses cash to customers. (succursale de dépôt de détail)

  rural area

  rural area means an area located in Canada outside an urban area. (zone rurale)

  undue pressure

  undue pressure means any pressure, imposed in the form of a practice or communication or otherwise, that could be reasonably considered to be excessive or persistent in the circumstances. (pressions indues)

  urban area

  urban area, on a particular day, means a population centre, as defined in the census dictionary published by Statistics Canada for the purpose of the most recent general census whose results have been published before that day, that has a minimum population of 10,000 natural persons on the basis of that census. (zone urbaine)

• Marginal note:Business purposes

  (2) For greater certainty, a reference to “business purposes” in a provision of this Part is a reference to the business purposes of the natural person referred to in the provision.

DIVISION 2Fair and Equitable Dealings

Responsible Business Conduct

General Requirements

Marginal note:Training

627.02 An institution shall ensure that its officers and employees in Canada, and any person who offers or sells the institution’s products or services in Canada, are trained with respect to the policies and procedures that it has established for complying with the consumer provisions.

Marginal note:False or misleading information

627.03 No institution shall communicate or otherwise provide false or misleading information to a customer, the public or the Commissioner.

Marginal note:Prohibited conduct

627.04 An institution shall not, in its dealings in Canada with its customers and the public,

• (a) impose undue pressure on a person, or coerce a person, for any purpose, including to obtain a product or service from a particular person — including the institution and any of its affiliates — as a condition for obtaining another product or service from the institution;

• (b) take advantage of a person; or

• (c) engage in any prescribed conduct.

Marginal note:For greater certainty

• 627.05 (1) For greater certainty, an institution may offer a product or service to a person on more favourable terms or conditions than it would otherwise offer, if the more favourable terms and conditions are offered on the condition that the person obtain another product or service from any particular person.

• Marginal note:For greater certainty

  (2) For greater certainty, an affiliate of an institution may offer a product or service to a person on more favourable terms or conditions than the affiliate would otherwise offer, if the more favourable terms and conditions are offered on the condition that the person obtain another product or service from the institution.

• Marginal note:Approval by institution

  (3) If a product or service is obtained by a borrower from a particular person as security for a loan from an institution, the institution may require that the product or service meet with its approval. That approval shall not be unreasonably withheld.

Marginal note:Policies and procedures — appropriate products or services

627.06 An institution shall establish and implement policies and procedures to ensure that the products or services in Canada that it offers or sells to a natural person other than for business purposes are appropriate for the person having regard to their circumstances, including their financial needs.

Marginal note:Remuneration, payment or benefit

627.07 An institution shall ensure that the remuneration of its officers and employees in Canada — and of any person who offers or sells its products or services in Canada — as well as any payment or benefit that the institution offers to them, does not interfere with the person’s ability to comply with the policies and procedures referred to in section 627.06.

Marginal note:No provision without express consent and agreement

• 627.08 (1) Subject to any regulations, an institution shall not provide a person with a product or service in Canada without first

  • (a) obtaining the person’s express consent to do so;

  • (b) entering into an agreement with the person for it to be provided; and

  • (c) providing the person with a copy of the agreement, if the agreement is for a product or service to be provided on an ongoing basis.

• Marginal note:Oral consent — written confirmation

  (2) If the consent is given orally, the institution shall provide the person with written confirmation of that consent without delay.

• Marginal note:Use not consent

  (3) Use by the person of the product or service does not constitute express consent for the purpose of subsection (1).

Marginal note:Obtaining express consent

627.09 Any communication from an institution seeking a person’s express consent shall be made in a manner, and using language, that is clear, simple and not misleading.

Marginal note:Cancellation periods — products or services

• 627.1 (1) If an institution enters into an agreement with a person in respect of a product or service in Canada — other than a prescribed product or service or a product or service referred to in section 627.11 — to be provided on an ongoing basis, the institution shall allow the person to cancel the agreement,

  • (a) if it was entered into by mail or orally by telephone, within the prescribed period or, if there is no prescribed period, until the end of the 14th business day after the day on which the agreement is entered into; or

  • (b) if it was entered into in any other manner, within the prescribed period or, if there is no prescribed period, until the end of the third business day after the day on which the agreement is entered into.

• Marginal note:Obligations of institution

  (2) If a person notifies an institution that they are cancelling an agreement within the applicable period referred to in subsection (1), the institution shall

  • (a) in writing and without delay, acknowledge receipt of the person’s notice of cancellation and confirm what it intends to recover under subsection (3); and

  • (b) without delay, refund to the person any amount that it received in respect of the provision of the product or service.

• Marginal note:Limited recovery

  (3) In the event of a cancellation within the applicable period referred to in subsection (1), an institution shall waive any cancellation charge and may recover only

  • (a) any amounts related to the person’s use of the product or service prior to the cancellation;

  • (b) any expense that the institution has reasonably incurred in providing the product or service; and

  • (c) any prescribed amount.

Marginal note:Cancellation — certain products or services

• 627.11 (1) If an institution enters into an agreement with a person in respect of a retail deposit account, deposit-type instrument, credit card account or any prescribed product or service in Canada, the institution shall allow the person to cancel the agreement in accordance with any prescribed requirements.

• Marginal note:Obligation of institution

  (2) If the person cancels the agreement, the institution shall meet any prescribed requirements.

Marginal note:Imposition of charges or penalties

• 627.12 (1) An institution shall not impose on a person a charge or penalty in relation to a product or service in Canada unless

  • (a) the institution has obtained from the person the express consent referred to in paragraph 627.08(1)(a);

  • (b) the agreement in respect of the product or service provides for its imposition; and

  • (c) the institution discloses the charge or penalty in accordance with this Part.

• Marginal note:Court order

  (2) Subsection (1) does not preclude the institution from receiving an amount in relation to a product or service that is determined under an order of a court.

Marginal note:Alert

• 627.13 (1) An institution shall, without delay, send to a natural person an alert, by electronic means,

  • (a) if the balance of the person’s personal deposit account that is opened in Canada falls below any amount that the person communicates to the institution or, if the person does not communicate an amount, below the prescribed amount or, if there is no prescribed amount, $100; or

  • (b) if the amount of credit available on the person’s line of credit that is extended — or credit card account that is opened — in Canada other than for business purposes falls below any amount that the person communicates to the institution or, if the person does not communicate an amount, below the prescribed amount or, if there is no prescribed amount, $100.

• Marginal note:Exception

  (2) Subsection (1) does not apply if the person has opted out, in writing, of receiving the alert or does not provide the contact information required to receive the alert.

• Marginal note:Content

  (3) The alert shall indicate that the balance of the personal deposit account, or the amount of credit available on the line of credit or credit card account, has fallen below the amount communicated to the institution, below the prescribed amount or below $100, as the case may be, and that, in accordance with the agreement in respect of the product or service, charges or penalties may be imposed for the most recent transaction, or for any subsequent transaction, made on the account or line of credit. The alert shall also indicate what the person may do to avoid charges or penalties and the time within which it is to be done, and include any prescribed information.

Marginal note:Advertisements

627.14 Any advertisement in Canada that is made by an institution shall be accurate, clear and not misleading.

Marginal note:Arrangements with affiliates, etc.

627.15 An institution shall not enter into any arrangement or otherwise cooperate with any of its representatives, agents or other intermediaries, with any of its affiliates that are controlled by a bank or a bank holding company and that are 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 institution or the affiliate unless

• (a) the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be, complies, with respect to the product or service, with the consumer provisions that apply to institutions, as if it were an institution, to the extent that those provisions are applicable to its activities;

• (b) the persons who request or receive the product or service have access to the institution’s procedures established for dealing with complaints under paragraph 627.43(1)(a) as if the product or service had been requested or received from the institution;

• (c) the employees of the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be,

  • (i) may report particulars under subsection 979.2(1) to the affiliate or the representative, agent or other intermediary of the institution or the affiliate as if they were an employee of a bank, and

  • (ii) have access to the procedures established under section 979.3; and

• (d) the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be, complies with section 979.4 as if it were a bank.

Marginal note:Intermediary for another entity

627.16 If an institution is acting in the capacity of a representative, agent or other intermediary for another entity in respect of a product or service provided by the entity, the institution shall ensure that an agreement in respect of that product or service complies with the prescribed requirements.

Access to Basic Banking Services

Retail Deposit Accounts

Marginal note:Opening

• 627.17 (1) Subject to subsection (2), a member bank shall, at any point of service or any branch in Canada at which it opens retail deposit accounts through natural persons, open a retail deposit account on the request, made there in person, of a natural person who

  • (a) presents to the member bank

    • (i) two documents from a reliable source — one of which indicates the person’s name and address and the other the person’s name and date of birth — including

      • (A) identification issued by the Government of Canada or the government of a province,

      • (B) recent notices of tax assessments issued by the Government of Canada or the government of a province or municipality,

      • (C) recent statements of benefits from the Government of Canada or the government of a province,

      • (D) recent Canadian public utility bills,

      • (E) recent bank account or credit card statements,

      • (F) foreign passports, and

      • (G) any prescribed document, or

    • (ii) any document from a reliable source that indicates the person’s name and date of birth, if the person’s identity is also confirmed by a customer in good standing with the member bank or by a natural person of good standing in the community where the point of service or branch is located;

  • (b) if the member bank so requests, consents to the member bank’s verifying whether any of the circumstances set out in paragraphs 627.18(1)(a) to (d) applies to the person, and to the member bank’s verifying the documents presented by the person;

  • (c) if the member bank — based on its verification of the circumstances set out in paragraphs 627.18(1)(a) to (d) or of the documents presented by the person or based on any information provided by the person in connection with the request — has reasonable grounds to suspect that the person is misrepresenting their identity, presents to the member bank one piece of identification issued by the Government of Canada or the government of a province that bears the person’s photograph and signature;

  • (d) if the member bank is a federal credit union and so requests, becomes a member of the bank; and

  • (e) meets any prescribed condition.

• Marginal note:Opening at another location

  (2) If a natural person who meets the conditions set out in subsection (1) requests the opening of a retail deposit account at a point of service at which the opening of such an account can only be initiated, the member bank is not required to open the account at that point of service; however, the bank shall open the account at another physical location.

• Marginal note:Request made in other manner

  (3) A member bank shall open a retail deposit account for any natural person who requests it in any prescribed manner and who meets any prescribed condition.

• Marginal note:No minimum deposit or balance required

  (4) A member bank shall not require the natural person to make an initial minimum deposit or maintain a minimum balance.

Marginal note:Non-application

• 627.18 (1) Subsections 627.17(1) to (3) do not apply

  • (a) if the member bank has reasonable grounds to believe that the retail deposit account will be used for illegal or fraudulent purposes;

  • (b) if the natural person has a history of illegal or fraudulent activity in relation to providers of financial services and the most recent instance of such an activity occurred less than seven years before the day on which the request to open a retail deposit account is made;

  • (c) if the member bank has reasonable grounds to believe that the natural person, for the purpose of opening the retail deposit account, knowingly made a material misrepresentation in the information provided to the member bank;

  • (d) if the member bank has reasonable grounds to believe that it is necessary to refuse to open the retail deposit account in order to protect the customers or employees of the member bank from physical harm, harassment or other abuse;

  • (e) if the request is made at a branch or point of service of a member bank at which the only retail deposit accounts offered are those that are linked to an account at another financial institution; or

  • (f) in any prescribed circumstances.

• Marginal note:Bankruptcy

  (2) For greater certainty and for the purpose of paragraph (1)(a), the fact that the natural person is or has been a bankrupt does not, by itself without any evidence of fraud or any other illegal activity in relation to the bankruptcy, constitute reasonable grounds for a member bank to believe that an account for the person will be used for illegal or fraudulent purposes.

Marginal note:Refusal to open

627.19 A member bank that refuses to open a retail deposit account for a natural person shall provide the person with

• (a) a written statement that indicates that it will not be opening the account; and

• (b) the information referred to in paragraphs 627.65(a) to (c).

Funds

Marginal note:Application

627.2 Sections 627.21 and 627.22 apply only with respect to paper-based cheques or other paper-based instruments deposited in Canada that are

• (a) encoded with magnetic ink to allow for character recognition;

• (b) not damaged or mutilated to the extent that they are unreadable by cheque-clearing systems;

• (c) drawn on an institution’s branch in Canada; and

• (d) issued in Canadian dollars.

Marginal note:Availability

627.21 An institution shall make available for withdrawal any funds deposited by cheque or other instrument into a retail deposit account or into a deposit account held by an eligible enterprise

• (a) in the case of a cheque or other instrument in an amount that is not greater than the prescribed amount,

  • (i) if the deposit is made in person with an employee at one of the institution’s branches or points of service, within the prescribed period or, if there is no prescribed period, no later than four business days after the day of the deposit, or

  • (ii) if the deposit is made in any other manner, within the prescribed period or, if there is no prescribed period, no later than five business days after the day of the deposit; and

• (b) in the case of a cheque or other instrument in an amount that is greater than the prescribed amount,

  • (i) if the deposit is made in person with an employee at one of the institution’s branches or points of service, within the prescribed period or, if there is no prescribed period, no later than seven business days after the day of the deposit, or

  • (ii) if the deposit is made in any other manner, within the prescribed period or, if there is no prescribed period, no later than eight business days after the day of the deposit.

Marginal note:First amount available

627.22 An institution shall make the prescribed amount of funds deposited or, if there is no prescribed amount, the first $100 of all funds deposited by a cheque or other instrument into a retail deposit account available for withdrawal

• (a) immediately, if the deposit is made in person with an employee at one of the institution’s branches or points of service; or

• (b) on the business day following the day of the deposit, if the deposit is made in any other manner.

Marginal note:Non-application

627.23 Section 627.21 does not apply in respect of a deposit that is made by an eligible enterprise if the institution has reasonable grounds to believe that there is a material increased credit risk, having regard to the following factors, among others:

• (a) an escalating overdraft balance that is not being reduced by deposits received;

• (b) a negative change in the credit score or other behaviour scores that may impact the enterprise’s credit risk;

• (c) an unexplained change in the history of cheques or other instruments deposited into the account;

• (d) a high number of cheques or other instruments deposited that are returned as dishonoured items from other institutions, which may impact the available balance in the account;

• (e) notice of bankruptcy or of creditor action against the enterprise; and

• (f) any prescribed factor.

Marginal note:Non-application

• 627.24 (1) Sections 627.21 and 627.22 do not apply

  • (a) if the institution has reasonable grounds to believe that the deposit is being made for illegal or fraudulent purposes in relation to the depositor’s account;

  • (b) if the account has been open for fewer than 90 days;

  • (c) if the cheque or other instrument has been endorsed more than once;

  • (d) if the cheque or other instrument is deposited at least six months after the date of the cheque or other instrument; or

  • (e) in any prescribed circumstances.

• Marginal note:Refusal to make funds available

  (2) An institution that relies on subsection (1) as grounds for not complying with section 627.21 or 627.22 shall — immediately, if the deposit is made in person with an employee at one of the institution’s branches or points of service or on request of the depositor if the deposit is made in any other manner — provide the depositor with

  • (a) a written statement that indicates that it will not be making the funds available; and

  • (b) the information referred to in paragraphs 627.65(a) to (c).

Cashing Government Cheques or Other Instruments

Marginal note:Cashing

• 627.25 (1) A member bank shall, at any branch in Canada at which it, through natural persons, opens retail deposit accounts and disburses cash to customers, cash a cheque or other instrument on the request of a natural person made there in person if

  • (a) the cheque or other instrument is drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada or in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament, or is any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund;

  • (b) the person presents to the member bank

    • (i) the documents referred to in subparagraph 627.17(1)(a)(i),

    • (ii) one piece of identification that is issued by the Government of Canada or the government of a province and that bears the person’s signature and photograph, or

    • (iii) any document from a reliable source that indicates the person’s name and date of birth, if the person’s identity is also confirmed by a customer in good standing with the member bank or by a natural person of good standing in the community where the branch is located;

  • (c) the amount of the cheque or other instrument is not greater than the prescribed amount; and

  • (d) any prescribed condition is met.

• Marginal note:Non-application

  (2) Subsection (1) does not apply

  • (a) if there is evidence that the cheque or other instrument has been altered in any way or is counterfeit;

  • (b) if the member bank has reasonable grounds to believe that there has been illegal or fraudulent activity in relation to the cheque or other instrument; or

  • (c) in any prescribed circumstances.

• Marginal note:Refusal to cash

  (3) A member bank that refuses to cash for a natural person a cheque or other instrument that meets the conditions set out in paragraphs (1)(a), (c) and (d) shall provide the person with

  • (a) a written statement that indicates that it will not be cashing the cheque or other instrument; and

  • (b) the information referred to in paragraphs 627.65(a) to (c).

Marginal note:No charges

• 627.26 (1) An institution shall not impose a charge

  • (a) for cashing a cheque or other instrument drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada, in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament or in any authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), in respect of its business in Canada;

  • (b) for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or

  • (c) in respect of any cheque or other instrument that is

    • (i) drawn in favour of the Receiver General, the Government of Canada or any department of it or any public officer acting in the capacity of a public officer, and

    • (ii) tendered for deposit to the credit of the Receiver General.

• Marginal note:Deposits of Government of Canada

  (2) Nothing in subsection (1) precludes any arrangement between the Government of Canada and an institution concerning

  • (a) compensation for services performed by the institution for the Government of Canada; or

  • (b) interest to be paid on any or all deposits of the Government of Canada with the institution.

Documents

Marginal note:General

• 627.27 (1) For greater certainty, any documents required to be presented by a natural person under any of sections 627.17 to 627.26 and subsection (2) shall be

  • (a) original, valid and not substantially defaced; and

  • (b) in the case of a piece of identification issued by the government of a province, usable for identification purposes under the law of the province.

• Marginal note:Different names

  (2) If any document presented by a natural person bears a former name of the person, the person shall present a certificate evidencing the change of name that has occurred or a certified copy of that certificate.

Credit

Marginal note:Prepayment

• 627.28 (1) An institution shall not make a loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment on the money advanced before its due date.

• Marginal note:Non-application

  (2) Subsection (1) does not apply in respect of a loan that

  • (a) is secured by a mortgage on real property; or

  • (b) is made for business purposes and has a principal amount of more than the prescribed amount or, if there is no prescribed amount, $100,000.

• Marginal note:Prepayment of certain loans

  (3) If an institution enters into a credit agreement with a natural person other than for business purposes, the institution shall allow the person

  • (a) in the case of a loan for a fixed amount, other than a loan that is secured by a mortgage on real property,

    • (i) to prepay the outstanding balance under the agreement, at any time, without incurring any charge or penalty for making the prepayment, or

    • (ii) to prepay a part of the outstanding balance

      • (A) on the date of any scheduled payment, if payments are scheduled once a month or more often, or

      • (B) at any time but only once a month, in any other case; and

  • (b) in the case of any prescribed credit agreement, to prepay any prescribed amount at any prescribed time if the person meets any prescribed requirements.

• Marginal note:Refund or credit

  (4) If a person makes a prepayment referred to in paragraph (3)(a) or (b), the institution shall refund or credit to the person the prescribed amount of any prescribed charge other than any interest or discount applicable to the loan.

Marginal note:No minimum credit balance without express consent

627.29 An institution shall not make a loan or advance in Canada to a natural person subject to the condition that the person maintain a minimum credit balance with the institution without first obtaining the person’s express consent to do so.

Marginal note:Default charges

627.3 If a natural person fails to make a payment when it becomes due under a credit agreement that the person entered into other than for business purposes or fails to comply with any other obligation in the agreement an institution may impose, in addition to interest, other charges for the sole purpose of recovering the costs reasonably incurred

• (a) for legal services retained to collect or attempt to collect the payment;

• (b) in realizing on any security interest taken under the credit agreement or in protecting such a security interest, including the cost of legal services retained for that purpose;

• (c) in processing a cheque or other instrument that the person used to make a payment under the loan but that was dishonoured; or

• (d) for any prescribed purpose.

Marginal note:Renewal of mortgages

627.31 If a natural person enters into a credit agreement other than for business purposes with an institution for a loan that is secured by a mortgage on real property and that is to be renewed on a specified day,

• (a) the institution shall not, during any prescribed period, make a change to the agreement that increases the cost of borrowing; and

• (b) the person’s rights under the agreement continue, and the renewal does not take effect, until the prescribed day.

Marginal note:No increase or provision without express consent

• 627.32 (1) Subject to any regulations, an institution shall not

  • (a) increase the credit limit on a line of credit that is extended — or a credit card account that is opened — in Canada for a natural person other than for business purposes without first obtaining the person’s express consent to do so; or

  • (b) provide cheques that are issued on a credit card account that is opened in Canada for a natural person other than for business purposes without first obtaining the person’s express consent to do so.

• Marginal note:Oral consent — written confirmation

  (2) If the consent is given orally, the institution shall provide the person with written confirmation of the consent not later than the date of the first statement of account that is provided after the date of that consent.

• Marginal note:Use not consent

  (3) Use by the person of the line of credit or the credit card account, or of any service related to the line of credit or credit card account, does not constitute express consent for the purpose of subsection (1).

Marginal note:Liability for unauthorized use

• 627.33 (1) The maximum liability of a borrower for the unauthorized use of a credit card issued to them in Canada, the account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account is $50, unless the borrower has demonstrated gross negligence or, in Quebec, gross fault, in safeguarding the credit card, the account information or the personal authentication information.

• Marginal note:Report of unauthorized use

  (2) If a borrower reports to an institution that a credit card issued to them in Canada, the account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account has been lost or stolen or is otherwise at risk of being used in an unauthorized manner, the borrower shall not be liable for any unauthorized use of the credit card, the account information or the personal authentication information after the report is received.

• Marginal note:Personal authentication information

  (3) The unauthorized use of a credit card issued to a borrower in Canada, or of account information of the credit card, by means of the personal authentication information created or adopted in relation to the credit card or credit card account does not by itself establish that the borrower demonstrated gross negligence or, in Quebec, gross fault, in safeguarding the personal authentication information.

Marginal note:Credit card statement

• 627.34 (1) Subject to any regulations, an institution shall, for a credit card issued in Canada to a natural person other than for business purposes, send a statement of account in respect of each billing cycle to the person. The statement is to be sent without delay after the last day of the billing cycle.

• Marginal note:Minimum payment — due date

  (2) An institution shall not require a minimum payment in respect of the outstanding balance owing for a particular billing cycle on the credit card account to be made by the person less than 21 days after the last day of that billing cycle.

• Marginal note:Non-business day

  (3) If the due date for a minimum payment in respect of the outstanding balance owing on the credit card account does not fall on a business day, the institution shall consider a payment made on the next business day as being made on time.

• Marginal note:No interest if balance paid in full

  (4) An institution shall not impose interest on purchases of goods or services made during a particular billing cycle on the credit card account if the person pays the outstanding balance owing on the credit card account in full on or before the due date.

Marginal note:Different interest rates — allocation of payment

• 627.35 (1) If different interest rates apply to different amounts owing for a particular billing cycle on a credit card account that is opened in Canada by a natural person other than for business purposes, the institution shall allocate any payment made by the person that is greater than the required minimum payment for that billing cycle among those amounts using one of the following methods:

  • (a) by allocating that payment first to the amount with the highest interest rate and then allocating any remaining portion of the payment to the other amounts in descending order, based on their applicable interest rates; or

  • (b) by allocating that payment among those amounts in the same proportion as each amount bears to the outstanding balance owing on the credit card account.

• Marginal note:Rounding and adjustments

  (2) For the purpose of paragraph (1)(b), if the payment that the institution allocates to an amount owing on a credit card account contains a fraction of a dollar, the institution may round up that amount to the nearest dollar if the fraction of the dollar is equal to or greater than 50 cents, round down that amount to the nearest dollar if the fraction is less than 50 cents and, if necessary, make corresponding adjustments to the other amounts that are being allocated.

Marginal note:No charge — holds

• 627.36 (1) An institution shall not impose a charge on a natural person for exceeding their credit limit as a result of a hold on a credit card that was issued in Canada to the person other than for business purposes.

• Marginal note:Non-application

  (2) Subsection (1) does not apply if the person would, in any case, have exceeded their credit limit during the period in which the hold was in effect.

Marginal note:Debt recovery

627.37 In its dealings with a natural person who owes it a debt under a credit agreement entered into other than for business purposes, an institution

• (a) shall not communicate or attempt to communicate with the person, any member of the person’s family or household, any relative, neighbour, friend or acquaintance of the person or the person’s employer by any means that constitutes harassment, in a manner that constitutes harassment or with a frequency that constitutes harassment, including by

  • (i) using threatening, profane, intimidating or coercive language,

  • (ii) using undue pressure, or

  • (iii) making public, or threatening to make public, the person’s failure to pay; and

• (b) shall comply with any other prescribed debt collection practices.

Prepaid Payment Products

Marginal note:No expiry unless promotional product

627.38 An institution shall not impose an expiry date on the right of a person with whom it entered into an agreement for the issuance of a prepaid payment product to use the funds that are loaded on the product unless it is a promotional product.

Marginal note:Maintenance charges

627.39 An institution shall not impose any maintenance charges in respect of a prepaid payment product for the period of 12 months after the day on which the product is activated unless it is

• (a) a promotional product; or

• (b) a reloadable product for which the institution has obtained the express consent of the person with whom it entered into an agreement for the issuance of the product to the imposition of the charge.

Marginal note:No overdraft charges without express consent

• 627.4 (1) An institution shall not impose any overdraft charges in respect of a prepaid payment product without first obtaining the express consent of the person with whom it entered into an agreement for the issuance of the product.

• Marginal note:Use not consent

  (2) Use by the person of the prepaid payment product does not constitute express consent for the purpose of subsection (1).

Optional Products or Services

Marginal note:Independent agreement

627.41 An institution shall not provide an optional product or service to a natural person — other than for business purposes — in an agreement in respect of another product or service.

Marginal note:Express consent — temporary offer

• 627.42 (1) If an optional product or service, or a product or service that would have been an optional product or service if it had been provided for an additional charge, is provided to a natural person — other than for business purposes — under a promotional, preferential, introductory or special offer other than an offer referred to in subsection (2), an institution shall not impose any charges for the use of the product or service as of the day on which the person will no longer benefit from the offer without obtaining, within five business days before that day, the person’s express consent to impose that charge.

• Marginal note:Express consent — number of uses

  (2) If an optional product or service, or a product or service that would have been an optional product or service if it had been provided for an additional charge, is provided to a natural person — other than for business purposes — under a promotional, preferential, introductory or special offer based on a specified number of uses, an institution shall not impose any charges after the last use of the product or service without obtaining, immediately after the last use, the person’s express consent to impose that charge.

• Marginal note:Use not consent

  (3) Use by the person of the product or service does not constitute express consent for the purpose of subsections (1) and (2).

Complaints Process

Marginal note:Procedures for dealing with complaints

• 627.43 (1) An institution shall

  • (a) establish procedures that are satisfactory to the Commissioner for dealing, within the prescribed period, with complaints;

  • (b) designate one of its officers or employees in Canada to be responsible for implementing those procedures; and

  • (c) designate one or more of its officers or employees in Canada to receive and deal with those complaints.

• Marginal note:Misleading terms

  (2) An institution shall not use any misleading term with respect to its procedures or designated officers or employees, including any term that suggests that the procedures, officers or employees are independent of the institution — such as the term “ombudsman” or any other term with a similar meaning — or any prescribed term.

• Marginal note:Filing with Commissioner

  (3) An institution shall file a copy of its procedures as amended from time to time with the Commissioner.

• Marginal note:Information regarding complaint procedure

  (4) An institution shall provide a person who makes a complaint with

  • (a) a written acknowledgment of the date on which it received the complaint;

  • (b) the information referred to in paragraphs 627.65(a) to (c); and

  • (c) any information that is necessary to enable them to meet the requirements of the procedures referred to in paragraph 627.65(a).

Marginal note:Record of complaint

627.44 An institution shall make, with respect to a complaint referred to in paragraph 627.43(1)(a), a record that is to be retained for a period of at least seven years and that contains

• (a) if the complaint was made in writing, the original version of the complaint;

• (b) if the complaint was made orally,

  • (i) the recording or a transcript of the recording if the complaint was recorded, or

  • (ii) the details of the complaint if the complaint was not recorded;

• (c) the name of the person who made the complaint;

• (d) the name of the person who requested or received from the institution the product or service to which the complaint relates;

• (e) the contact information provided by the person who made the complaint;

• (f) the date on which the institution received the complaint;

• (g) a description of the nature of the complaint and the product or service to which the complaint relates;

• (h) the date on which the complaint was resolved if, in the institution’s opinion, it was resolved to the satisfaction of the person who made the complaint;

• (i) a description of any actions that were taken by the institution to attempt to resolve the complaint;

• (j) a description of any compensation provided to the persons referred to in paragraph (c) or (d);

• (k) confirmation that the institution provided the information referred to in paragraphs 627.65(a) to (c) to the person who made the complaint, if the institution did so; and

• (l) any prescribed information.

Marginal note:Access to Commissioner

627.45 The institution shall ensure that the record retained under section 627.44 is accessible to the Commissioner.

Marginal note:Report to Commissioner

627.46 Within 60 days after the end of each quarter, an institution shall submit to the Commissioner in a form satisfactory to him or her, with respect to each complaint received by an officer or employee referred to in paragraph 627.43(1)(c) during that quarter,

• (a) a copy of the record retained under section 627.44, except the contact information referred to in paragraph 627.44(e) other than the postal code; and

• (b) any prescribed information.

Marginal note:Annual information

627.47 An institution shall, free of charge and within 135 days after the end of each financial year, make available the following information for that year on each of its websites through which it offers products or services in Canada and provide the information in writing to any person who requests it:

• (a) the number and nature of any complaints that were dealt with by the officer or employee designated by the institution to deal with complaints who holds the most senior position identified for that purpose in the procedures established by the institution;

• (b) the average length of time taken to deal with the complaints received by that officer or employee;

• (c) the number of complaints that, in the institution’s opinion, were resolved by that officer or employee to the satisfaction of the persons who made them; and

• (d) any prescribed information.

Marginal note:Approval of body corporate

• 627.48 (1) The Minister may, on the Commissioner’s recommendation and for the purpose of this section, approve a body corporate incorporated under the Canada Not-for-profit Corporations Act or under the Canada Business Corporations Act to be an external complaints body if the body corporate’s purpose under its letters patent is, in the Minister’s opinion, to deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints.

• Marginal note:Information, material and evidence

  (2) A body corporate that is seeking an approval under subsection (1) is to apply to the Commissioner and include in the application, in the manner required by the Commissioner, any information, material and evidence that he or she requires.

• Marginal note:Matters for consideration

  (3) Before approving a body corporate, the Minister shall take into account all matters that the Minister considers relevant to the application, including whether the body corporate has

  • (a) the reputation required under paragraph 627.49(a); and

  • (b) policies and procedures, and terms of reference to govern its functions and activities as an external complaints body, that would enable it to meet the conditions set out in paragraphs 627.49(b) to (m).

• Marginal note:Obligation to be member

  (4) An institution shall be a member of only one body corporate that is approved under subsection (1).

• Marginal note:Not an agent

  (5) The approved body corporate is not an agent of Her Majesty.

• Marginal note:Approval to be published

  (6) An approval given under subsection (1) shall be published in the Canada Gazette.

Marginal note:Maintaining approval

627.49 A body corporate that is approved under subsection 627.48(1) shall, as a condition of maintaining that approval,

• (a) maintain a reputation for being operated in a manner that is consistent with the standards of good character and integrity;

• (b) make its services as an external complaints body available across Canada in both official languages and offer those services free of charge to persons who make complaints to it;

• (c) ensure that every person who acts on its behalf with respect to a complaint is impartial and independent of the parties to the complaint;

• (d) advise the Commissioner in writing and without delay if it determines that a complaint raises a systemic issue;

• (e) if it determines that all or part of a complaint is not within its terms of reference, provide the person who made the complaint with written reasons for that determination, and the name of any entity to whom the person may make a complaint, within 30 days after the day on which it receives the complaint;

• (f) obtain confirmation from a member institution to which a complaint relates regarding whether the period referred to in paragraph 627.43(1)(a) has ended, unless the person who made the complaint has provided it with the written acknowledgment referred to in paragraph 627.43(4)(a);

• (g) impartially deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints;

• (h) no later than 120 days after the day on which it has all of the information that it requires to deal with a complaint, make a final written recommendation to the parties;

• (i) within 90 days after making a final recommendation, make a summary of the final recommendation available on its website free of charge, which summary is to include

  • (i) a description of the nature of the complaint that is the subject of the final recommendation,

  • (ii) the name of the institution that received the complaint,

  • (iii) a description of any compensation provided to the persons referred to in paragraph 627.44(c) or (d),

  • (iv) the reasons for the final recommendation, and

  • (v) any prescribed information;

• (j) within 135 days after the end of each financial year, file a written report with the Commissioner on the performance of its functions and activities as an external complaints body for that year, which report is to include

  • (i) information about

    • (A) its constitution, governance and terms of reference, and the identity of its member institutions,

    • (B) all sources of funding for its functions and activities as an external complaints body, including the fees charged to each of its member institutions for its services and the manner in which those fees are calculated, and

    • (C) the results of the most recent evaluation referred to in paragraph (l),

  • (ii) a summary of the results of any consultation with its member institutions and with persons who made complaints to it,

  • (iii) in respect of each of its member institutions, the number and nature of complaints that it received, the number of complaints that it determined were within its terms of reference, the number of final recommendations that it made and the number of complaints that, in its opinion, were resolved to the satisfaction of the persons who made them,

  • (iv) the average length of time taken to deal with complaints,

  • (v) the number of complaints that it determined were not within its terms of reference and the reasons for that determination,

  • (vi) the number of final recommendations that it made in which compensation was recommended, and

  • (vii) the average and total compensation provided with respect to complaints that it determined were within its terms of reference;

• (k) without delay after it is filed with the Commissioner, make the report available on its website free of charge and provide it to any person who requests it;

• (l) submit, every five years, to an evaluation, conducted by a third party in accordance with terms of reference that are established by the body corporate in consultation with the Commissioner, of the performance of its functions and activities as an external complaints body; and

• (m) meet any prescribed condition.

Marginal note:Notice of transfer of membership

627.5 An institution shall give the Commissioner and the external complaints body of which it is a member written notice of a request, or an intention to make a request, to become a member of another external complaints body at least 90 days before the day on which it becomes a member of that other body.

Marginal note:Designation of body corporate

• 627.51 (1) The Minister may, for the purpose of this section, designate a body corporate incorporated under the Canada Not-for-profit Corporations Act to be an external complaints body if the body corporate’s purpose is, in the Minister’s opinion, to deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints.

• Marginal note:Effect of designation

  (2) If a body corporate is designated under subsection (1), no approval may be given under subsection 627.48(1) and any approval that has been given under that subsection is revoked, and any complaint pending before a body corporate approved under subsection 627.48(1) shall be taken up and continued by the body corporate designated under subsection (1).

• Marginal note:Obligation to be member

  (3) Every institution shall be a member of the body corporate that is designated under subsection (1).

• Marginal note:Directors

  (4) The Minister may, in accordance with the letters patent and by-laws of the designated body corporate, appoint the majority of its directors.

• Marginal note:Not an agent

  (5) A body corporate designated under subsection (1) is not an agent of Her Majesty.

• Marginal note:Designation to be published

  (6) A designation made under subsection (1) shall be published in the Canada Gazette.

Marginal note:Provision of information — external complaints body

627.52 An institution shall provide the external complaints body of which it is a member with all information in its possession or control that relates to a complaint without delay after the external complaints body notifies it that the complaint has been received in respect of it.

Marginal note:Provision of information

627.53 If an institution or a body corporate is required under sections 627.43 to 627.52 to provide information, it shall do so in a manner, and using language, that is clear, simple and not misleading.

Marginal note:Content of Commissioner’s report

627.54 The Commissioner shall include in the report referred to in section 34 of the Financial Consumer Agency of Canada Act

• (a) the procedures for dealing with complaints established by institutions under paragraph 627.43(1)(a);

• (b) the number and nature of complaints that have been made to the Agency; and

• (c) a summary of the information referred to in section 627.47 and the information in the report referred to in paragraph 627.49(j).

DIVISION 3Disclosure and Transparency for Informed Decisions

Key Product Information

General Requirements

Marginal note:Disclosure of information

• 627.55 (1) If an institution is required under this Division to disclose information, it shall do so in a manner, and using language, that is clear, simple and not misleading, and shall do so in writing, unless otherwise provided for under this Division.

• Marginal note:Agreement by telephone

  (2) Subject to the regulations, an institution that enters into an agreement with a person orally by telephone in respect of a product or service in Canada is deemed to have disclosed in writing the information referred to in subsection (1) if it

  • (a) discloses orally to the person, before entering into the agreement by telephone,

    • (i) the information or any prescribed portion of the information, and

    • (ii) any prescribed information; and

  • (b) provides the information in writing to the person without delay after entering into the agreement.

Marginal note:Disclosure — customers and the public

627.56 If an institution is required under this Division to disclose information to its customers and to the public, it shall do so by

• (a) displaying the information prominently

  • (i) at each of its branches in Canada where it offers products or services and at each of its points of service, and

  • (ii) on each of its websites through which it offers products or services in Canada; and

• (b) providing the information in writing to any person who requests it.

Marginal note:Information box

• 627.57 (1) If an institution is required under this Division to disclose information in an application form or before entering into an agreement in respect of a product or service, it shall, at the time of that disclosure, disclose the information that is prescribed by presenting it prominently in a single prominently displayed information box.

• Marginal note:Information box — disclosure by telephone

  (2) An institution shall orally draw attention to the information that is required to be disclosed in the information box when

  • (a) the institution solicits applications for the product or service from a person orally by telephone; or

  • (b) a person contacts the institution orally by telephone for the purpose of applying for the product or service.

Marginal note:Resource person

627.58 Subject to the regulations, an institution shall, before entering into an agreement with a person by electronic means or by mail in respect of a product or service in Canada, provide the person with the local or toll-free telephone number of a natural person who is an employee or agent of the institution and who is knowledgeable about the terms and conditions of the agreement.

Marginal note:Other products or services

627.59 An institution shall, before entering into an agreement with a natural person in respect of any product or service in Canada to be provided on an ongoing basis and for which disclosure obligations are not otherwise provided under this Division, disclose to that person

• (a) the features of the product or service;

• (b) a list of all charges and penalties applicable to the product or service;

• (c) particulars of the person’s rights and obligations in respect of the product or service;

• (d) the information referred to in paragraphs 627.65(a) to (c); and

• (e) any prescribed information.

Marginal note:Renewal or rollover

• 627.6 (1) If an institution enters into an agreement with a natural person other than for business purposes in respect of a product or service in Canada — other than a loan that is secured by a mortgage on real property — and the agreement provides that a product or service may be renewed or that, after the end of the term of the product or service, a new product or service may be provided to the person without a further agreement being entered into, the institution shall disclose to the person the information set out in subsection (2),

  • (a) in the case of a product or service that is provided for a term of more than 30 days, 21 days before, and five days before, the last day of the term; and

  • (b) in the case of a product or service that is provided for a term of 30 days or less, five days before the last day of the term.

• Marginal note:Content

  (2) The information to be disclosed is the following:

  • (a) the interest rate that will be applicable to the product or service on its renewal, or to the new product or service;

  • (b) any charges or penalties that may be imposed on the person in relation to the product or service on its renewal, or to the new product or service;

  • (c) particulars of the person’s rights and obligations in relation to the product or service on its renewal, or to the new product or service;

  • (d) the period within which the institution shall allow the person to cancel the agreement in respect of the product or service that may be renewed, or in respect of the new product or service; and

  • (e) any prescribed information.

Marginal note:Promotional and other offers

• 627.61 (1) If a natural person accepts, other than for business purposes, a promotional, preferential, introductory or special offer with respect to a product or service other than an optional product or service, the institution shall disclose to the person the information set out in subsection (2),

  • (a) if the period during which the person will benefit from the offer is more than 30 days, 21 days before, and five days before, the last day of the period; and

  • (b) if the period during which the person will benefit from the offer is 30 days or less, five days before the last day of the period.

• Marginal note:Content

  (2) The information to be disclosed is the following:

  • (a) the interest rate that will be applicable to the product or service after the day on which the person will no longer benefit from the offer;

  • (b) any charges or penalties that may be imposed on the person in relation to the product or service after the day on which the person will no longer benefit from the offer;

  • (c) particulars of the person’s rights and obligations in relation to the product or service after the day on which the person will no longer benefit from the offer;

  • (d) the period within which the institution shall allow the person to cancel the agreement in respect of the product or service after the day on which the person will no longer benefit from the offer; and

  • (e) any prescribed information.

Marginal note:Prescribed amendments to agreements

627.62 An institution shall, before any prescribed amendment that it makes to a term or condition of an agreement with a person in respect of a product or service in Canada takes effect, disclose prescribed information to the person or any other person as directed by that person.

Marginal note:Advertisements

627.63 If an institution is required under this Division to disclose information in an advertisement, it shall do so by presenting it prominently — as specified in any regulations — within the advertisement.

Marginal note:Prohibited conduct

627.64 An institution shall disclose to its customers and to the public the fact that it shall not, under section 627.04,

• (a) impose undue pressure on a person, or coerce a person, for any purpose, including to obtain a product or service from a particular person, as a condition for obtaining another product or service from the institution; or

• (b) take advantage of a person.

Marginal note:Complaints procedures

627.65 An institution shall disclose to its customers and to the public

• (a) its procedures for dealing with complaints established under paragraph 627.43(1)(a);

• (b) the name of the external complaints body of which it is a member and the manner in which that body may be contacted; and

• (c) the Agency’s mailing address, website address and telephone number.

Marginal note:Voluntary codes of conduct and public commitments

627.66 An institution shall disclose the voluntary codes of conduct that it has adopted, that are designed to protect the interests of its customers and that are publicly available — and the public commitments that it has made and that are designed to protect the interests of its customers — by

• (a) making the voluntary codes and commitments available

  • (i) at each of its branches in Canada where it offers products or services and at each of its points of service, and

  • (ii) on each of its websites through which it offers products or services in Canada; and

• (b) providing the voluntary codes and commitments in writing to any person who requests them.

Deposit Accounts, Financial Instruments and Notes

Deposit Accounts

Marginal note:Member banks — customers and the public

627.67 A member bank shall disclose to its customers and to the public

• (a) the conditions to be met for the opening of a retail deposit account by a natural person under subsections 627.17(1) and (3);

• (b) the personal identification requirements set out in paragraph 627.25(1)(b); and

• (c) any prescribed information.

Marginal note:Institutions — customers and the public

627.68 An institution shall disclose to its customers and to the public

• (a) a list of all charges applicable to personal deposit accounts in Canada with the institution and the usual amount, if any, charged by the institution for services normally provided in Canada to its customers and to the public;

• (b) for a deposit account in Canada other than a personal deposit account,

  • (i) a list of all charges applicable to any prescribed services that it provides in respect of the account and the fact that the list sets out all such charges, or

  • (ii) a partial list of those charges and the manner in which information regarding charges not included in the list can be obtained;

• (c) the maximum periods during which the institution may hold funds deposited by cheque or other instrument before making them available for withdrawal, as set out in section 627.21; and

• (d) the institution’s policies concerning the maximum period during which the institution may hold funds deposited by cheque or other instrument in any situation to which section 627.21 does not apply.

Marginal note:Opening of deposit account

• 627.69 (1) An institution shall, before entering into an agreement with a person for the opening of a deposit account in Canada, disclose to the person

  • (a) subject to subsection (2), a list of all charges applicable to the account;

  • (b) in the case of a personal deposit account, the circumstances in which the institution shall send the person an alert, in accordance with section 627.13;

  • (c) in the case of a retail deposit account,

    • (i) the rate of interest and the manner in which the amount of interest is calculated,

    • (ii) the maximum periods during which the institution may hold funds deposited by cheque or other instrument before making them available for withdrawal, as set out in section 627.21, and

    • (iii) the institution’s policies concerning the maximum period during which the institution may hold funds deposited by cheque or other instrument in any situation to which section 627.21 does not apply; and

  • (d) any prescribed information.

• Marginal note:If amount of charge cannot be determined

  (2) If the amount of a charge referred to in paragraph (1)(a) cannot be determined before an agreement is entered into for the opening of a deposit account other than a personal deposit account, the institution shall, without delay after the amount is determined, disclose that amount to the person in whose name the account is kept.

Marginal note:Changes to holding periods

• 627.7 (1) An institution shall disclose any changes to the information referred to in paragraph 627.68(c) or (d) to its customers and to the public for a period of at least 60 days ending on the effective date of the change, and disclose any changes to the information referred to in subparagraph 627.69(1)(c)(ii) or (iii) to each person in whose name the retail deposit account is kept and to whom a statement of account is provided — or to any other person as directed by that person — at least 30 days before the effective date of the change.

• Marginal note:Shortened holding period

  (2) If the change results in a shortened period during which an institution may hold funds deposited by cheque or other instrument, the institution may meet the obligations set out in subsection (1) after the effective date of the change.

Marginal note:Change in rate of interest or manner of calculation

627.71 If there is a change in the rate of interest that is applicable to a deposit account in Canada or in the manner in which the amount of interest for such an account is calculated, an institution shall, without delay, disclose the change

• (a) to the person in whose name the account is kept or to any other person as directed by that person; or

• (b) to the public by displaying it prominently

  • (i) at each of its branches in Canada where it offers deposit accounts and at each of its points of service, and

  • (ii) on each of its websites through which it offers deposit accounts in Canada.

Marginal note:Increase or new charge

• 627.72 (1) An institution shall disclose to a person to whom a statement of account is provided — or to any other person as directed by that person — any increase to a charge applicable to a personal deposit account in Canada — or applicable to a prescribed service in relation to deposit accounts in Canada, other than personal deposit accounts — or any new charge applicable to a personal deposit account in Canada at least 30 days before the effective date of the increase or new charge.

• Marginal note:Statement of account not provided

  (2) If there is a person in whose name the account is kept to whom a statement of account is not provided, an institution shall disclose to its customers and to the public any increase referred to in subsection (1) for a period of at least 60 days ending on the effective date of the increase or new charge, and if the increase or new charge is applicable to a personal deposit account, by displaying the increase or new charge prominently at each automated teller machine on which the name of the institution or information identifying the machine with the institution is displayed.

• Marginal note:Manner of obtaining further information

  (3) An institution shall, to meet its obligations under subsection (2), also disclose the manner in which further details with respect to the increase or new charge can be obtained.

Deposit Insurance

Marginal note:Authorized foreign banks — customers and the public

627.73 An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) and a bank referred to in paragraph 413(1)(b) or (c) shall disclose to their customers and to the public that deposits with them are not insured by the Canada Deposit Insurance Corporation.

Marginal note:Authorized foreign banks — customers and the public

627.74 An authorized foreign bank that is subject to this section under an order referred to in subsection 524(2) shall disclose to its customers and to the public that it does not accept deposits in Canada and that it is not a member institution of the Canada Deposit Insurance Corporation.

Marginal note:Authorized foreign banks — deposit accounts and agreements for prescribed products

627.75 An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit,

• (a) disclose to the person the fact that deposits to the deposit account or in relation to the prescribed product, as the case may be, are not insured by the Canada Deposit Insurance Corporation, as well as any prescribed information; and

• (b) obtain the person’s signature immediately next to the disclosure statement.

Marginal note:Certain banks — deposit accounts and agreements for prescribed products

• 627.76 (1) A bank referred to in paragraph 413(1)(b) or (c) shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit, disclose to the person the fact that deposits to the deposit account or in relation to the prescribed product are not insured by the Canada Deposit Insurance Corporation.

• Marginal note:Shared premises

  (2) A bank referred to in paragraph 413(1)(b) or (c) that shares premises with a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit,

  • (a) disclose to the person

    • (i) the fact that the bank’s business is separate and distinct from that of the member institution, and

    • (ii) the fact that deposits to the deposit account or in relation to the prescribed product are not insured by the Canada Deposit Insurance Corporation;

  • (b) orally explain to the person the information that is to be disclosed under paragraph (a); and

  • (c) obtain from the person a signed declaration stating that

    • (i) the person has been given all of the information that is to be disclosed under paragraph (a) and has read it,

    • (ii) the bank has orally explained all the information that is to be disclosed under paragraph (a), and

    • (iii) the person understands all of the information that is to be disclosed under paragraph (a).

Financial Instruments and Notes

Marginal note:Availability of information

627.77 An institution shall disclose prescribed information with respect to a deposit-type instrument, a principal-protected note or a prescribed product by

• (a) making the information available

  • (i) at each of its branches in Canada and points of service where it offers any of these products, and

  • (ii) on each of its websites through which it offers these products in Canada; and

• (b) providing the information to any person who requests it.

Marginal note:Issuance

• 627.78 (1) An institution shall, before entering into an agreement with a person for the issuance of a deposit-type instrument, a principal-protected note or a prescribed product, disclose to the person

  • (a) the term of the product, how and when the principal is to be repaid and how and when the interest, if any, is to be paid;

  • (b) if the rate of interest in respect of the product is fixed, the annual rate of interest or, if the rate of interest is variable,

    • (i) how the rate of interest is determined,

    • (ii) the prime lending rate or the bankers’ acceptance rate, as the case may be, that is used for the calculation of the rate of interest,

    • (iii) the prime lending rate or the banker’s acceptance rate in effect when the information is disclosed, and

    • (iv) how the person may obtain the rate of interest from the institution during the investment period;

  • (c) any charges applicable to the product and their impact on the interest payable;

  • (d) how interest is accrued and any limitations in respect of the interest payable;

  • (e) any risks associated with the product, including, if applicable, the risk that no interest may accrue;

  • (f) if the product relates to a deposit that is not eligible for deposit insurance coverage by the Canada Deposit Insurance Corporation, the fact that it is not eligible;

  • (g) whether the person may cancel their purchase of the product and, if so, how the purchase may be cancelled;

  • (h) whether the proposed agreement provides that the institution may amend a term or condition with respect to the product and, if so, in what circumstances;

  • (i) whether the manner in which the product is structured or administered may place the institution in a conflict of interest;

  • (j) any other information that could reasonably be expected to affect the person’s decision to enter into the agreement; and

  • (k) any prescribed information.

• Marginal note:New instrument issued without further agreement

  (2) If, after the maturity of a deposit-type instrument issued under an agreement referred to in subsection (1), an institution issues a new deposit-type instrument under that agreement, the institution shall disclose prescribed information to the person without delay after the instrument is issued.

Marginal note:Principal-protected note — no interest

627.79 If a principal-protected note ceases to be linked to an index or reference point that was to be used to determine the interest payable under the note and, as a result, no interest will be paid, the institution shall, without delay, disclose that fact to the person to whom the note was issued.

Marginal note:Current value

627.8 An institution shall disclose the following information without delay to a person who makes a request concerning the value of a product referred to in section 627.78 that was issued to the person:

• (a) in the case of a principal-protected note,

  • (i) the net asset value of the note on the day specified by the person and how that value is related to the interest payable under the note, or

  • (ii) the last available measure, before the day specified by the person, of the index or reference point on which the interest is determined and how that measure is related to the interest payable under the note;

• (b) in the case of a deposit-type instrument, the amount of the principal and accrued interest on the day on which the request was made; and

• (c) in the case of any prescribed product, prescribed information.

Marginal note:Amendments — deposit-type instruments or prescribed products

627.81 An institution shall, before any amendment that it makes to a term or condition with respect to a deposit-type instrument or a prescribed product takes effect, disclose the amendment and its potential impact on the interest payable to the person to whom the instrument or product was issued.

Marginal note:Amendments — principal-protected notes

627.82 An institution shall, before any amendment that it makes to a term or condition with respect to a principal-protected note that may have an impact on the interest payable under the note takes effect, disclose the amendment and its potential impact on the interest payable to the person to whom the note was issued. However, if it is not possible to make that disclosure before the time the amendment takes effect, the institution shall do so as soon as possible after that time.

Marginal note:Redemption or purchase before maturity

627.83 An institution shall

• (a) before redeeming or purchasing a principal-protected note before its maturity on the request of the person to whom it was issued, disclose to that person

  • (i) the value of the note on the last business day before the day on which the request is made, or the value of the note based on the last available measure of the index or reference point on which the interest is determined,

  • (ii) the amount of any charge or penalty,

  • (iii) the net amount that the person would have received for the redemption or purchase after deducting the amount referred to in subparagraph (ii) from the value of the note referred to in subparagraph (i), and

  • (iv) the time at which and the manner in which the value of the note will be calculated, and the fact that the value of the note may differ from the value referred to in subparagraph (i);

• (b) before redeeming a deposit-type instrument before its maturity on the request of the person to whom it was issued, disclose to that person the amount of the principal and accrued interest, the amount of any charge or penalty and the net amount payable by the institution on redemption; and

• (c) before redeeming any prescribed product before its maturity on the request of the person to whom it was issued, disclose to that person prescribed information.

Marginal note:Manner

627.84 For the purposes of sections 627.8 and 627.83, the institution shall disclose the information in the same manner in which the request is made unless otherwise directed by the person.

Advertisements

Marginal note:Rate of interest

627.85 An institution shall — in any advertisement in Canada in which it indicates the rate of interest that it offers on a deposit or debt obligation — disclose the manner in which the amount of interest is calculated and any circumstances that will affect the rate of interest, including the balance of a deposit account. The information shall be disclosed in the same manner in which the rate is indicated, whether visually or orally, or both.

Marginal note:Uninsured deposits

627.86 An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) and a bank referred to in paragraph 413(1)(b) or (c) shall — in any advertisement in Canada in respect of deposits — disclose, visually or orally, that deposits with it are not insured by the Canada Deposit Insurance Corporation.

Marginal note:Financial instruments and notes

• 627.87 (1) An institution shall — in any advertisement in Canada for a product that is a deposit-type instrument, a principal-protected note or a prescribed product — disclose, visually or orally,

  • (a) how the public may obtain information about the product;

  • (b) if the advertisement refers to features of the product or the interest payable under it,

    • (i) the manner in which interest is to be accrued and any limitations in respect of the interest payable, and

    • (ii) the fact that the product relates to deposits that are not eligible to be insured by the Canada Deposit Insurance Corporation, if that is the case; and

  • (c) any prescribed information.

• Marginal note:Non-application

  (2) Subparagraph (1)(b)(ii) does not apply to an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) or a bank referred to in paragraph 413(1)(b) or (c).

• Marginal note:Market performance

  (3) An institution shall — in any advertisement in Canada for a principal-protected note in which it uses past market performance — disclose, visually or orally, the assumptions underlying any hypothetical examples used in the advertisement to represent that performance, and the fact that past market performance is not an indicator of future market performance.

• Marginal note:Fair representation

  (4) The institution shall, in the advertisements referred to in subsection (3), represent the past market performance fairly and only use realistic assumptions to underlie hypothetical examples.

Credit

Marginal note:Availability of information

627.88 An institution shall disclose prescribed information with respect to a credit agreement by

• (a) making the information available

  • (i) at each of its branches in Canada and points of service, and

  • (ii) on each of its websites through which it offers products or services in Canada; and

• (b) providing the information to any person who requests it.

Marginal note:Agreement — natural persons

• 627.89 (1) An institution shall, before entering into a credit agreement with a natural person other than for business purposes, disclose to the person

  • (a) the cost of borrowing, as calculated and expressed in accordance with section 627.9;

  • (b) particulars of the person’s rights and obligations;

  • (c) any charges or penalties that may be imposed on the person;

  • (d) in the case of a line of credit or credit card account, the circumstances in which the institution shall send the person an alert, in accordance with section 627.13; and

  • (e) any prescribed information.

• Marginal note:Agreement — other persons

  (2) An institution shall, before entering into a credit agreement with a person, other than a person referred to in subsection (1), disclose to the person prescribed information.

• Marginal note:Applications for credit, payment or charge card

  (3) An institution shall disclose in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards

  • (a) in the case of a credit card,

    • (i) a list of all non-interest charges,

    • (ii) the information referred to in paragraph (1)(a),

    • (iii) the day on which interest begins to accrue and information concerning any grace period that applies, and

    • (iv) any prescribed information; and

  • (b) in the case of a payment or charge card, any prescribed information.

• Marginal note:Subsequent disclosure

  (4) An institution shall, after entering into a credit agreement with a person, disclose prescribed information to the person.

• Marginal note:Amendments

  (5) An institution shall disclose to the person with whom it has entered into a credit agreement

  • (a) any prescribed amendment to the terms or conditions of the credit agreement; and

  • (b) any prescribed information resulting from the amendment.

• Marginal note:Renewal

  (6) An institution shall disclose to the person with whom it has entered into a credit agreement any prescribed information respecting the renewal of the credit agreement.

Marginal note:Calculating borrowing costs

627.9 The cost of borrowing shall be calculated, in the prescribed manner, on the basis that all obligations of the borrower are fulfilled and shall be expressed as a rate per annum and, in the prescribed circumstances, as an amount in dollars and cents.

Marginal note:Advertisements

627.91 An institution that makes a prescribed representation in an advertisement in Canada for a product that may be obtained by a natural person under a credit agreement shall disclose prescribed information in the advertisement.

Prepaid Payment Products

Marginal note:Issuance

• 627.92 (1) An institution shall, before entering into an agreement with a person for the issuance of a prepaid payment product, disclose to the person

  • (a) the name of the issuing institution;

  • (b) the day on which the product expires, if any;

  • (c) if it is a promotional product, the day, if any, on which the person’s right to use the funds that are loaded on the product will expire;

  • (d) a toll-free telephone number that can be used to make inquiries about the prepaid payment product, including its balance and the terms or conditions with respect to the product, and to make complaints;

  • (e) the following restrictions on the use of the product, if imposed by the issuing institution:

    • (i) the fact that the product is not reloadable,

    • (ii) the fact that the product cannot be used to make withdrawals, and

    • (iii) any other restriction that could reasonably be expected to affect the person’s decision to enter into the agreement;

  • (f) all charges that may be imposed on the person by the issuing institution in respect of the product;

  • (g) if the funds that are loaded on the product are not insured by the Canada Deposit Insurance Corporation, a statement to that effect;

  • (h) a statement indicating

    • (i) in the case of a promotional product, either that the person’s right to use the funds that are loaded on the product will not expire, or that that right will expire, along with the expiry date, as the case may be, and

    • (ii) in the case of any other prepaid payment product, that the person’s right to use the funds that are loaded on the product will not expire;

  • (i) a website address where the information referred to in paragraphs (a) and (d) to (g) can be obtained; and

  • (j) any prescribed information.

• Marginal note:Means of disclosure

  (2) The institution shall disclose the information set out in paragraphs (1)(a) to (d) and (i) by setting it out directly on the prepaid payment product or, if the product is electronic, by disclosing it electronically on the person’s request.

Marginal note:Increase or new charge

627.93 An institution shall not increase any charge or impose a new charge associated with a prepaid payment product that is issued to a natural person unless

• (a) the person has provided the institution with their name and mailing or email address;

• (b) the institution has given the person the opportunity to modify the information referred to in paragraph (a); and

• (c) the institution discloses the new or increased charge by

  • (i) sending a notice to the most recent address provided for the person at least 30 days before the effective date of the new or increased charge, and

  • (ii) displaying a notice on the institution’s website for a period of at least 60 days ending on the effective date of the new or increased charge.

Optional Products or Services

Marginal note:Agreement — natural persons

• 627.94 (1) An institution shall, before entering into an agreement with a natural person other than for business purposes for an optional product or service, disclose to the person the following information:

  • (a) a description of the optional product or service;

  • (b) the term of the agreement;

  • (c) a list of all charges that will be imposed for the use of the product or service, or the method used for determining the charges and an example to illustrate the method;

  • (d) the conditions under which the person may cancel the agreement;

  • (e) the date from which the product or service is available for use and, if different, from which charges apply; and

  • (f) the steps required to use the product or service.

• Marginal note:Content — cancellation

  (2) Before entering into the agreement, the institution shall also disclose

  • (a) the fact that the person may cancel the agreement by notifying the institution that the agreement is to be cancelled;

  • (b) the fact that the cancellation will take effect on the last day of the billing cycle, or 30 days after the institution receives the notification, whichever is earlier; and

  • (c) the fact that it shall, without delay on receipt of the notification, refund or credit to the person any amount that it received for any part of the product or service that will be unused from the effective date of the cancellation, to be calculated in accordance with the prescribed formula.

Marginal note:Promotional and other offers

627.95 The institution shall, immediately before obtaining a person’s express consent under section 627.42, disclose to the person the information set out in paragraphs 627.94(1)(b) to (e) and subsection 627.94(2) and,

• (a) if consent is to be obtained under subsection 627.42(1), the day on which the person will no longer benefit from the offer; and

• (b) if consent is to be obtained under subsection 627.42(2), the fact that the person no longer benefits from the offer.

Marginal note:Amendments

627.96 If an institution makes an amendment to a term or condition of an agreement referred to in section 627.94 that results in a change to the information that was required to be disclosed under that section, the institution shall, at least 30 days before the day on which the amendment takes effect, disclose that change to the person.

Marginal note:Cancellation

627.97 If an optional product or service, other than one provided in relation to a credit agreement, is provided on an ongoing basis by an institution, the institution shall, as part of any disclosure that it is required to make under section 627.95 or 627.96, disclose the information set out in paragraph 627.94(1)(d) and subsection 627.94(2).

Registered Products

Marginal note:Availability of list of charges

627.98 An institution shall disclose a list of all charges applicable to registered products by

• (a) making the list available

  • (i) at each of its branches in Canada and points of service where it offers registered products, and

  • (ii) on each of its websites through which it offers registered products in Canada; and

• (b) providing the list to any person who requests it.

Marginal note:Agreement — persons

627.99 An institution shall, before entering into an agreement with a person for a registered product in Canada, disclose to the person

• (a) information about all charges applicable to the product;

• (b) information about how the person will be notified of any increase in those charges and of any new charges applicable to the product; and

• (c) any prescribed information.

Marginal note:Amendments

627.991 An institution shall, before any amendment that it makes to a term or condition with respect to a registered product takes effect, disclose the amendment to the person to whom the product was issued.

Mortgage Insurance

Marginal note:Availability of information

• 627.992 (1) If an institution or any of its affiliates imposes a charge for insurance or a guarantee that the institution obtains against default on a loan made in Canada on the security of residential property, the institution shall disclose prescribed information and any other information that could reasonably be expected to have an impact on a borrower by

  • (a) making the information available

    • (i) at each of its branches in Canada and points of service where it offers residential mortgages, and

    • (ii) on each of its websites through which it offers residential mortgages in Canada; and

  • (b) providing the information to any person who requests it.

• Marginal note:Agreement — persons

  (2) An institution shall, before entering into an agreement under which such a charge is imposed on a person, disclose prescribed information to the person and any other information that could reasonably be expected to have an impact on the person.

Public Notices

Notice of Branch Closure

Marginal note:Written notice

• 627.993 (1) A member bank that closes a retail deposit-taking branch — or that ceases to open retail deposit accounts or to disburse cash to customers through a natural person at a retail deposit-taking branch — shall

  • (a) give a written notice to the Commissioner not later than

    • (i) four months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in an urban area or in a rural area where there is another retail deposit-taking branch within a travelling distance of 10 km from the branch, or

    • (ii) six months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in a rural area where there is no other retail deposit-taking branch within a travelling distance of 10 km from the branch;

  • (b) give a written notice to each customer of the branch and to the public not later than four months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in an urban area or in a rural area where there is another retail deposit-taking branch within a travelling distance of 10 km from the branch; and

  • (c) give a written notice to each customer of the branch, to the public and to the chairperson, mayor, warden, reeve or other similar chief officer of the municipal or local government body or authority for the area in which the branch is located not later than six months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in a rural area where there is no other retail deposit-taking branch within a travelling distance of 10 km from the branch.

• Marginal note:Notice to public

  (2) The member bank shall give the notice to the public by

  • (a) displaying it prominently at the branch; and

  • (b) if the notice is one that is required under paragraph (1)(c), publishing it in a newspaper in general circulation at or near the place where the branch is located.

• Marginal note:Content of notice

  (3) The notice shall include prescribed information.

Marginal note:Exemptions

627.994 In prescribed circumstances, the Commissioner may, on the request of a member bank, exempt it from the requirement to give a notice under section 627.993 or vary the time and manner in which such a notice is required to be given.

Marginal note:Meeting

• 627.995 (1) After a notice is given but before the branch is closed or ceases to carry on the activity, the Commissioner shall require the member bank to convene and hold a meeting between representatives of the bank, representatives of the Agency and interested persons in the area affected by the closure of the branch or the cessation of the activity in order to exchange views about the closure of the branch or the cessation of the activity, including alternate service delivery by the bank and measures to help the branch’s customers adjust to the closure or the cessation of the activity, if

  • (a) the member bank has not consulted in the area well enough to ascertain the views of interested persons in the area with regard to the closure of the branch, the cessation of the activity, alternate service delivery by the bank or measures to help the branch’s customers adjust to the closure or the cessation of the activity; and

  • (b) an area representative or a person from the area submits to the Commissioner a request for the meeting and the request is not frivolous or vexatious.

• Marginal note:Rules

  (2) The Commissioner may establish rules for the convening and conduct of a meeting.

• Marginal note:Non-application of Statutory Instruments Act

  (3) The Statutory Instruments Act does not apply to rules established under subsection (2).

Public Accountability Statements

Marginal note:Content

• 627.996 (1) A bank with equity of $1,000,000,000 or more shall, within 135 days after the end of each financial year,

  • (a) file a written statement with the Commissioner that includes, for that financial year,

    • (i) prescribed information with respect to the contribution of the bank and its prescribed affiliates to the Canadian economy and society and with respect to any other matter,

    • (ii) the names of the voluntary codes of conduct that it has adopted, that are designed to protect the interests of its customers and that are publicly available — and of any public commitments that it has made and that are designed to protect the interests of its customers — along with the means by which the codes and commitments are made available to its customers and the public,

    • (iii) a description of the measures taken by the bank and its prescribed affiliates to provide products and services to low-income persons, senior persons, persons with disabilities and persons who face accessibility, linguistic or literacy challenges, and

    • (iv) a description of the consultations undertaken by the bank and its prescribed affiliates with their customers and the public in relation to

      • (A) existing products and services, including the means by which they are provided,

      • (B) the development of new products and services, including the means by which they would be provided,

      • (C) the identification of trends and emerging issues that may have an impact on their customers or the public, and

      • (D) matters in respect of which the bank has received complaints; and

  • (b) inform its customers and the public, through advertising, making public announcements, posting notices, mailing information or otherwise, about the means by which the statement is made available to them.

• Marginal note:Exception

  (2) A bank is not required to include in the statement the information required under subparagraphs (1)(a)(i), (iii) and (iv) with respect to a prescribed affiliate if a company referred to in subsection 489.1(1) of the Insurance Companies Act or subsection 444.2(1) of the Trust and Loan Companies Act has already published that information in its statement published under those subsections.

• Marginal note:Availability of statement

  (3) The bank shall make the statement available free of charge

  • (a) on each of its websites through which it offers products or services in Canada; and

  • (b) by providing it to any person who requests it.

DIVISION 4Redress

Marginal note:Credit or refund of charge or penalty

• 627.997 (1) An institution shall, if it has imposed a charge or penalty in relation to a product or service,

  • (a) credit the amount of the charge or penalty or, if it was collected, refund the amount if the charge or penalty was not provided for in an agreement; or

  • (b) credit the excess amount of the charge or penalty or, if it was collected, refund the excess amount if the charge or penalty was greater than the amount of charge or penalty that was provided for in an agreement.

• Marginal note:Credit or refund of charge or penalty — no express consent

  (2) An institution shall, if it has provided a person with a product or service without first having obtained from the person the express consent referred to in paragraph 627.08(1)(a), and if it has imposed a charge or penalty on the person in relation to the product or service, credit the amount of the charge or penalty or, if it was collected, refund the amount.

• Marginal note:Interest

  (3) The amount referred to in subsections (1) and (2) bears interest from the day on which it was imposed, at a rate equal to the Bank of Canada’s overnight rate on that day, until the day on which the amount is refunded or credited.

DIVISION 5Regulations

Marginal note:Regulations

627.998 The Governor in Council may make regulations respecting any matters involving an institution’s dealings, or the dealings of its employees, representatives, agents or other intermediaries, with customers or the public, any matters involving products or services that are the subject of those dealings and any matters involving an institution that is acting in the capacity of a representative, agent or other intermediary for another entity, including regulations

• (a) requiring the disclosure of information;

• (b) respecting the training of an institution’s employees, representatives, agents or other intermediaries;

• (c) respecting the content of advertisements and the manner in which it is displayed or communicated;

• (d) respecting the rebate or refund of any amounts paid or to be paid in relation to the provision of a product or service;

• (e) prescribing what an institution may, shall or shall not do — including in relation to the imposition of charges or penalties — in carrying out any of the activities that it is permitted to carry out, or in providing any of the services that it is permitted to provide, under section 409 or 538 and any ancillary, related or incidental activities or services;

• (f) respecting the names of positions to be used by an institution’s employees, representatives, agents or other intermediaries in their dealings with customers or the public;

• (g) prescribing the time at which and the manner in which any of the activities referred to in paragraph (e) are to be carried out or any of the services referred to in that paragraph are to be provided;

• (h) prescribing when documents and information that are required to be disclosed, sent or otherwise provided under this Part are deemed to have been provided;

• (i) prescribing the manner in which any information that is required to be filed, disclosed, made available or otherwise provided under this Part is to be organized or broken down;

• (j) prescribing the time at which and the manner in which any information that is required to be filed, disclosed, made available or otherwise provided under this Part is to be filed, disclosed, made available or otherwise provided;

• (k) prescribing the circumstances in which all or part of sections 627.08, 627.17, 627.28, 627.3, 627.31, 627.59, 627.72, 627.89, 627.99, 627.992 and 627.993 do not apply;

• (l) specifying conduct that shall be considered or shall not be considered coercion for the purpose of paragraph 627.04(a);

• (m) requiring a member bank, at any point of service or any branch in Canada at which it opens retail deposit accounts through natural persons, to open, at the request of a natural person who meets the prescribed conditions, a low-cost or no-cost retail deposit account for the person, and prescribing the characteristics of such an account, including the name of the account;

• (n) respecting the collection, retention, use or disclosure of information about a customer and the manner in which complaints by the customer in relation to that collection, retention, use or disclosure are to be dealt with;

• (o) respecting the requirements to be met by a body corporate approved under subsection 627.48(1) and by a body corporate seeking approval under subsection 627.48(2); and

• (p) respecting the requirements to be met by a body corporate that is designated under subsection 627.51(1).