Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)
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Assented to 2023-06-22
PART 4Various Measures (continued)
DIVISION 11991, c. 46Bank Act (continued)
2001, c. 9Consequential Amendments to the Financial Consumer Agency of Canada Act
140 Section 2.1 of the Financial Consumer Agency of Canada Act is replaced by the following:
Marginal note:Supervision and protection
2.1 The purpose of this Act is to ensure that financial institutions, the external complaints body and payment card network operators are supervised by an agency of the Government of Canada so as to contribute to the protection of consumers of financial products and services and the public, including by strengthening the financial literacy of Canadians.
141 (1) The portion of paragraph 3(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) supervise financial institutions and the external complaints body to determine whether they are in compliance with
(2) Paragraph 3(2)(c.1) of the Act is replaced by the following:
(c.1) promote the adoption by the external complaints body of policies and procedures designed to implement the provisions, terms and conditions, undertakings or directions referred to in paragraph (a);
(3) Paragraph 3(2)(d) of the Act is replaced by the following:
(d) strengthen the financial literacy of Canadians and promote consumer awareness about the obligations of financial institutions and the external complaints body under the consumer provisions applicable to them and about all matters connected with the protection of consumers of financial products and services; and
142 Subsection 14(1) of the Act is replaced by the following:
Marginal note:Ownership
14 (1) No Commissioner, person appointed under subsection 4(4) or Deputy Commissioner shall hold, directly or indirectly, any interest or right in any shares of any financial institution, any bank holding company, any insurance holding company, the external complaints body or any other body corporate, however created, carrying on any business in Canada that is substantially similar to any business carried on by any financial institution or the external complaints body.
143 Subsection 16(1) of the Act is replaced by the following:
Marginal note:No grant or gratuity to be made
16 (1) The Commissioner, a person appointed under subsection 4(4), a Deputy Commissioner and any person appointed under section 10 shall not accept or receive, directly or indirectly, any grant or gratuity from a financial institution, a bank holding company, an insurance holding company or the external complaints body, or from a director, officer or employee of any of them, and a financial institution, a bank holding company, an insurance holding company and the external complaints body, and any director, officer or employee of any of them, shall not make or give any such grant or gratuity.
144 Subsection 17(1) of the Act is replaced by the following:
Marginal note:Confidential information
17 (1) Subject to subsection (2) and except as otherwise provided in this Act, information regarding the business or affairs of a financial institution or of the external complaints body or regarding persons dealing with a financial institution or with the external complaints body that is obtained by the Commissioner or by any person acting under the Commissioner’s direction, in the course of the exercise or performance of powers, duties and functions referred to in subsections 5(1) and (2) and 5.1(2), and any information prepared from that information, is confidential and shall be treated accordingly.
145 (1) Subsection 18(1) of the Act is replaced by the following:
Marginal note:Commissioner to ascertain expenses
18 (1) The Commissioner shall, before December 31 in each year, ascertain the total amount of expenses incurred during the immediately preceding fiscal year for or in connection with the administration of this Act and the consumer provisions — excluding the expenses incurred in connection with the objects described in subsection 3(3) — and the amounts of any prescribed categories of those expenses in relation to any prescribed group of financial institutions and the external complaints body.
(2) Subsection 18(3) of the Act is replaced by the following:
Marginal note:Assessment
(3) As soon as possible after ascertaining the amounts under subsections (1) and (1.1), the Commissioner shall assess a portion of the total amount of expenses against each financial institution and the external complaints body to the extent and in the manner that the Governor in Council may, by regulation, prescribe.
(3) Subsection 18(4) of the Act is replaced by the following:
Marginal note:Interim assessment
(4) The Commissioner may, during each fiscal year, prepare an interim assessment against any financial institution or the external complaints body.
(4) Subsection 18(5) of the Act is replaced by the following:
Marginal note:Assessment is binding
(5) Every assessment and interim assessment is final and conclusive and binding on the financial institution against which it is made or the external complaints body, as the case may be.
146 Paragraph 34(a) of the Act is replaced by the following:
(a) in aggregate form, its conclusions on the compliance, in that year, of financial institutions and the external complaints body with the consumer provisions applicable to them; and
SOR/2021-181Related Amendments to the Financial Consumer Protection Framework Regulations
147 (1) The portion of section 16 of the Financial Consumer Protection Framework Regulations before paragraph (a) is replaced by the following:
Marginal note:Requirements
16 For the purposes of paragraph 627.49(m) of the Act, the following are prescribed requirements for the external complaints body:
(2) Paragraphs 16(b) and (c) of the Regulations are repealed.
(3) Section 16 of the Regulations is amended by adding “and” at the end of paragraph (d), by striking out “and” at the end of paragraph (e) and by repealing paragraph (f).
DIVISION 2Private Sector Pension Plans
R.S., c. 32 (2nd Supp.)Pension Benefits Standards Act, 1985
148 (1) The definitions defined benefit provision, defined contribution provision and variable benefit in subsection 2(1) of the Pension Benefits Standards Act, 1985 are replaced by the following:
- defined benefit provision
defined benefit provision means a provision of a pension plan under which pension benefits for a member are determined in any way other than that described in paragraph (a) of the definition defined contribution provision and that does not provide for a variable life benefit; (disposition à prestations déterminées)
- defined contribution provision
defined contribution provision means
(a) a provision of a pension plan under which pension benefits for a member are determined solely as a function of the amount of pension benefit that can be provided by
(i) contributions made by and on behalf of that member, and
(ii) interest earnings and other gains and losses allocated to that member, or
(b) a provision of a pension plan that provides for a variable life benefit; (disposition à cotisations déterminées)
- variable benefit
variable benefit means a pension benefit payable in the form of a variable payment out of the pension fund, but does not include a variable life benefit; (prestation variable)
(2) The definition cessation in subsection 2(1) of the French version of the Act is replaced by the following:
- termination
cessation S’agissant d’un régime de pension, s’entend de sa cessation dans les cas visés par les paragraphes 29(1), (2), (2.1) et (4.2). (termination)
(3) Paragraphs (a) and (b) of the definition former member in subsection 2(1) of the Act are replaced by the following:
(a) except in sections 9.2 and 24, paragraph 28(1)(b.1) and subsection 28(2.1), a person who, on or after January 1, 1987, has either ceased membership in the plan or retired;
(b) in section 9.2, paragraph 28(1)(b.1) and subsection 28(2.1), a person who has either ceased membership in the plan or retired and has not, before the termination of the whole of the plan,
(i) transferred their pension benefit credit under section 16.4, 16.91 or 26,
(ii) used their pension benefit credit to purchase a life annuity under section 16.4, 16.91 or 26, or
(iii) had their pension benefits transferred to another pension plan; or
(4) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
- variable life benefit
variable life benefit means a pension benefit whose amount varies as a function of factors that include
(a) the amount or rate of return attributable to the investment of the assets of the fund from which the benefit is paid, and
(b) the rate of mortality of the pool of persons who are entitled to receive a benefit from that fund; (prestation viagère variable)
149 Section 10.1 of the Act is amended by adding the following after subsection (2):
Marginal note:Non-application — variable life benefit
(3) Subsection (2) does not apply with respect to an amendment to reduce, as permitted or required under the regulations, the amount of a variable life benefit.
150 Section 10.2 of the Act is amended by adding the following after subsection (2):
Marginal note:Transfer from variable life benefit fund
(3) Subject to section 16.91 and subsection 29(12), the administrator may transfer or permit the transfer of any part of the assets of a variable life benefit fund established under subsection 16.6(1) to another pension plan, including a pension plan to which this Act does not apply, only with the Superintendent’s permission.
151 The Act is amended by adding the following after section 16.5:
Variable Life Benefits
Marginal note:Fund and benefits
16.6 (1) Subject to the regulations, a pension plan may
(a) provide for the establishment within the pension fund of a variable life benefit fund from which variable life benefits are to be paid; and
(b) provide that a person referred to in subsection (2) may, in order to receive variable life benefits, elect to transfer to the variable life benefit fund any amounts in either or both of the following accounts:
(i) their account in the pension fund maintained in respect of a defined contribution provision, and
(ii) their account in the pension fund maintained for additional voluntary contributions.
Marginal note:Persons who may elect
(2) The following persons may make the election referred to in paragraph (1)(b):
(a) a member or former member who is entitled to an immediate pension benefit under subsection 16(1) or eligible to receive an immediate pension benefit under subsection 16(2);
(b) a survivor who is entitled to pension benefits under the pension plan.
Marginal note:Conditions on election
16.7 A person referred to in subsection 16.6(2) may elect to transfer amounts to the variable life benefit fund only if the prescribed conditions are met.
Marginal note:No accounts in fund
16.8 A variable life benefit fund does not contain individual accounts for recipients of variable life benefits and, for greater certainty, a reference in this Act to an account, made in relation to a defined contribution provision or a defined contribution plan, is not to be construed as referring to amounts held within a variable life benefit fund.
Marginal note:Termination
16.9 (1) This section, and not section 29, applies with respect to the termination of a variable life benefit fund if that termination includes only the termination of one or more such funds and the whole of the plan is not being terminated.
Marginal note:No partial termination
(2) A partial termination of a variable life benefit fund is not permitted.
Marginal note:Termination by administrator
(3) Subject to subsection (4), a variable life benefit fund is terminated only if the administrator of the pension plan notifies the Superintendent — in writing or in the form and manner, if any, that the Superintendent directs — of the decision to terminate the fund and the date of termination, not less than 60 days and not more than 180 days before the date of termination.
Marginal note:Declaration by Superintendent
(4) In the prescribed circumstances, the Superintendent may declare a variable life benefit fund to be terminated as of the date that the Superintendent considers appropriate.
Marginal note:Termination report
(5) On the termination of a variable life benefit fund, the administrator shall file with the Superintendent — in the form and manner, if any, that the Superintendent directs — a termination report that contains the prescribed information and that is prepared by a person having the prescribed qualifications.
Marginal note:Approval of termination report
(6) Assets of the variable life benefit fund may not be applied toward the provision of any benefits until the Superintendent has approved the termination report. The administrator may nevertheless pay variable life benefits, as they fall due, to the persons entitled to them.
Marginal note:Transfer or purchase on termination
16.91 (1) On the termination of a variable life benefit fund under section 16.9, a former member or survivor who was receiving a variable life benefit from the fund is entitled to
(a) transfer, for the purpose of making an election to receive a variable benefit under section 16.2, the amount of the aggregate value of their variable life benefits at termination to an account maintained in the pension plan in respect of a defined contribution provision, if the pension plan provides for such an election;
(b) transfer that amount to another pension plan, including one referred to in any of paragraphs 26(5)(a) to (c), if that other plan permits;
(c) transfer that amount to a retirement savings plan of the prescribed kind for the former member or survivor, as the case may be; or
(d) use that amount to purchase an immediate or deferred life annuity of the prescribed kind for the former member or survivor, as the case may be.
Marginal note:Aggregate value
(2) The aggregate value of a person’s variable life benefits at termination is to be calculated in the prescribed manner.
Marginal note:Survivor
(3) For the purposes of paragraph (1)(a), a survivor may make an election under section 16.2 as if they were a former member, but neither paragraph 16.2(2)(a) nor section 16.3 apply with respect to the survivor.
Marginal note:Superintendent may direct winding-up
16.92 If a variable life benefit fund has been terminated under section 16.9 and the Superintendent is of the opinion that no action or insufficient action has been taken to wind up the fund, the Superintendent may direct the administrator to distribute the assets of the fund, and may direct that any expenses incurred in connection with that distribution be paid out of the fund, and the administrator shall comply with any such direction without delay.
- Date modified: