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 33Legislation Related to Financial Institutions (continued)
1991, c. 47Insurance Companies Act (continued)
598 The Act is amended by adding the following after section 701:
Marginal note:Policies and procedures — integrity or security
701.1 An insurance holding company shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference.
599 Subsection 997(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) determine whether the insurance holding company has adequate policies and procedures to protect itself against threats to its integrity or security.
600 Subsection 1000(1) of the Act is replaced by the following:
Marginal note:Examination of insurance holding companies
1000 (1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any insurance holding company that the Superintendent considers to be necessary or expedient to determine whether the insurance holding company is complying with the provisions of this Act and to ascertain the financial condition of the insurance holding company or to determine whether the insurance holding company has adequate policies and procedures to protect itself against threats to its integrity or security.
601 Section 1002 of the Act is replaced by the following:
Marginal note:Prudential agreement
1002 The Superintendent may enter into an agreement, called a “prudential agreement”, with an insurance holding company for the purposes of implementing any measure designed to protect the interests of depositors, policyholders and creditors of any federal financial institution affiliated with it or establishing adequate policies and procedures to protect the insurance holding company against threats to its integrity or security.
602 Subsections 1003(2) and (3) of the Act are replaced by the following:
Marginal note:Directions — policies and procedures
(1.1) If, in the opinion of the Superintendent, an insurance holding company does not have adequate policies and procedures to protect itself against threats to its integrity or security, the Superintendent may direct the insurance holding company to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.
Marginal note:Opportunity for representations
(2) Subject to subsection (3), no direction shall be issued under subsection (1) or (1.1) unless the insurance holding company is provided with a reasonable opportunity to make representations in respect of the matter.
Marginal note:Temporary direction
(3) If, in the opinion of the Superintendent, the length of time required for representations to be made might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) to (d) or subsection (1.1) having effect for a period of not more than 15 days.
603 Subsection 1004(1) of the Act is replaced by the following:
Marginal note:Court enforcement
1004 (1) If an insurance holding company is contravening or has failed to comply with a prudential agreement entered into under section 1002 or a direction of the Superintendent issued under subsection 1003(1), (1.1) or (3), or is contravening this Act, or has omitted to do any thing under this Act that it is required to do, the Superintendent may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the insurance holding company to comply with the direction, cease the contravention or do any thing that is required to be done, and on such application the court may so order and make any other order it thinks fit.
604 Subsection 1016.2(1) of the Act is replaced by the following:
Marginal note:Minister — terms, conditions and undertakings
1016.2 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it or to ensure that such a financial institution has adequate policies and procedures to protect itself against threats to its integrity or security.
605 Subsection 1016.3(3) of the Act is replaced by the following:
Marginal note:Representations
(3) Before taking any action under subsection (1) or (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations.
Marginal note:Temporary amendment or suspension
(4) If, in the Minister’s opinion, the length of time required for representations to be made under subsection (3) might be prejudicial to the public interest, the Minister may temporarily suspend or amend any approval granted by the Minister.
Marginal note:Cessation of effect
(5) A temporary suspension or amendment of an approval ceases to have effect on the earlier of
(a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified by the Minister, and
(b) if the approval is revoked, suspended or amended under subsection (1), the day on which the revocation, suspension or amendment takes effect.
606 The Act is amended by adding the following after section 1016.3:
Marginal note:Confidential undertaking
1016.31 (1) If, in the Minister’s opinion, the disclosure of information about an undertaking required under subsection 1016.2(1) or 1016.3(1) or (4), or information that could reveal the existence of the undertaking, could pose a threat to the integrity or security of the financial institution to which the undertaking relates or could be injurious to national security, the Minister may specify that the information is confidential and shall be treated accordingly.
Marginal note:Prohibition
(2) Despite anything in this Act but subject to subsection (3), it is prohibited to disclose any confidential information referred to in subsection (1) except in accordance with any terms or conditions that the Minister may specify in the undertaking.
Marginal note:Notice — Committee and Review Agency
(3) If the Minister specifies under subsection (1) that information referred to in that subsection is confidential for reasons related to national security, the Minister shall, within 30 days after the day on which the undertaking in question is required, notify
(a) the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act; and
(b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.
607 Subsection 1020(1) of the Act is replaced by the following:
Marginal note:Appeal to Federal Court
1020 (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 428(7), 432(1), 432.1(1), 954(7) or 956(1).
R.S., c. W-11; 1996, c. 6, s. 134Consequential Amendment to the Winding-up and Restructuring Act
608 (1) The portion of section 10.1 of the Winding-up and Restructuring Act before paragraph (e) is replaced by the following:
Marginal note:Other winding-up circumstances
10.1 If the Superintendent has taken control of a financial institution or of the assets of a financial institution under any of paragraphs 648(1)(b) or (1.11)(b) to (d) of the Bank Act, paragraph 442(1)(b) of the Cooperative Credit Associations Act, any of paragraphs 679(1)(b) or (1.21)(b) to (d) of the Insurance Companies Act or any of paragraphs 510(1)(b) or (1.11)(b) to (d) of the Trust and Loan Companies Act or, in the case of an authorized foreign bank, has taken control of its assets under paragraph 619(1)(b) or (2.1)(b) or (c) of the Bank Act or, in the case of a foreign insurance company, has taken control of its assets under subparagraph 679(1)(b)(i) or (ii) or paragraph 679(1.21)(b) or (c) of the Insurance Companies Act, a court may make a winding-up order in respect of the financial institution, authorized foreign bank or insurance business in Canada of the foreign insurance company if the court is of the opinion that for any reason it is just and equitable that the financial institution, authorized foreign bank or insurance business in Canada of the foreign insurance company should be wound up or if, in the case of
(a) a bank to which the Bank Act applies, the control was taken on a ground referred to in paragraph 648(1.1)(a), (c), (e) or (f) of that Act or for reasons related to national security;
(a.1) an authorized foreign bank, control of its assets was taken on a ground referred to in paragraph 619(2)(a), (b), (d) or (f) of the Bank Act or for reasons related to national security;
(b) a company to which the Trust and Loan Companies Act applies, the control was taken on a ground referred to in paragraph 510(1.1)(a), (c), (e) or (f) of that Act or for reasons related to national security;
(c) an insurance company to which the Insurance Companies Act applies, other than a foreign insurance company, the control was taken on a ground referred to in paragraph 679(1.1)(a), (c), (e) or (f) of that Act or for reasons related to national security;
(d) a foreign insurance company to which the Insurance Companies Act applies, the control of its assets was taken on a ground referred to in paragraph 679(1.2)(a), (c) or (e) of that Act or for reasons related to national security; or
(2) Paragraph 10.1(e) of the French version of the Act is replaced by the following:
e) en raison de l’alinéa 442(1.1)a), c), e) ou f) de la Loi sur les associations coopératives de crédit, dans le cas d’une association assujettie au régime de cette loi.
Coming into Force
Marginal note:January 1, 2024
609 Section 518, subsections 523(1) and (3), sections 539 and 543, subsections 544(1) and (3) and 556(1) and (3), sections 568, 578, 582 and 583, subsections 585(1) and (3) and section 598 come into force on January 1, 2024.
DIVISION 34R.S., c. C-46Criminal Code
Amendments to the Act
610 (1) The definition criminal rate in subsection 347(2) of the Criminal Code is replaced by the following:
- criminal rate
criminal rate means an annual percentage rate of interest calculated in accordance with generally accepted actuarial practices and principles that exceeds 35 per cent on the credit advanced; (taux criminel)
(2) Subsection 347(4) of the Act is replaced by the following:
Marginal note:Proof of annual percentage rate
(4) In any proceedings under this section, a certificate of a Fellow of the Canadian Institute of Actuaries stating that they have calculated the annual percentage rate of interest on any credit advanced and setting out the calculations and the information on which they are based is, in the absence of evidence to the contrary, proof of the annual percentage rate of interest without proof of the signature or official character of the person appearing to have signed the certificate.
611 The Act is amended by adding the following after section 347:
Marginal note:Agreement or arrangement
347.01 (1) Section 347 does not apply in respect of agreements or arrangements provided for by regulation.
Marginal note:Regulations
(2) The Governor in Council may, by regulation, on the recommendation of the Minister of Justice and after that Minister’s consultation with the Minister of Finance, provide for the types of agreements or arrangements in respect of which section 347 does not apply or the criteria for determining the agreements or arrangements, or the types of agreements or arrangements, in respect of which that section does not apply.
612 (1) Subsection 347.1(2) of the Act is amended by adding the following after paragraph (a):
(a.1) the total cost of borrowing under the agreement does not exceed the limit fixed by regulation;
(2) Section 347.1 of the Act is amended by adding the following after subsection (2):
Marginal note:Regulation — limit
(2.1) For the purposes of paragraph (2)(a.1), the Governor in Council may, by regulation, on the recommendation of the Minister of Justice and after that Minister’s consultation with the Minister of Finance, fix the limit.
Marginal note:Clarification
(2.2) If section 347 does not apply to a person by reason of subsection (2) immediately before a regulation made under subsection (2.1) comes into force, that section continues not to apply to the person if the total cost of borrowing under the agreement did not exceed the limit that applied immediately before the regulation came into force.
Transitional Provisions
Marginal note:Words and expressions
613 The words and expressions used in sections 614 and 615 have the same meaning as in sections 347 and 347.1 of the Criminal Code.
Marginal note:Subsection 347(1) of Criminal Code
614 For the purposes of subsection 347(1) of the Criminal Code, the definition criminal rate in subsection 347(2) of that Act, as it reads on the day on which subsection 610(1) comes into force, does not apply in respect of any receipt of a payment or partial payment of interest that, on or after that day, is interest at a criminal rate, if the payment arises from an agreement or arrangement to receive interest that was entered into before that day and the interest that arises from that agreement or arrangement would not have been at a criminal rate, as defined in subsection 347(2) of the Criminal Code, as that subsection 347(2) read before that day.
Marginal note:Paragraph 347.1(2)(a.1) of Criminal Code
615 Paragraph 347.1(2)(a.1) of the Criminal Code, as it reads on the day on which subsection 612(1) comes into force, does not apply to a person who
(a) entered into a payday loan agreement to receive interest before that day; or
(b) on or after that day, receives any payment or partial payment of interest, if the payment arises from a payday loan agreement to receive interest that was entered into before that day.
Coming into Force
Marginal note:Order in council
616 Sections 610 to 612 come into force on a day or days to be fixed by order of the Governor in Council.
DIVISION 351996, c. 23 Employment Insurance Act
617 Subparagraph 12(2.3)(a)(i) of the Employment Insurance Act is replaced by the following:
(i) the date on which a benefit period for the claimant is established falls within the period beginning on September 26, 2021 and ending on October 26, 2024,
DIVISION 361999, c. 33Canadian Environmental Protection Act, 1999
Amendments to the Act
618 (1) Subsections 272.2(3) and (4) of the Canadian Environmental Protection Act, 1999 are replaced by the following:
Marginal note:Compliance units
(3) If a person is convicted of an offence under subsection (1) by reason of having failed to comply with a provision that requires the remission or the cancellation of compliance units described in regulations made under section 326, the court shall, in addition to any other punishment that may be imposed under that subsection, make an order requiring the person to remit or cancel compliance units of the type and number determined in accordance with regulations made under subsection (4) or, if there are no regulations made under subsection (4), in accordance with subsection (5). In the case of an order to remit, the court shall specify in the order the name of the person or entity to whom the compliance units are to be remitted.
Marginal note:Regulations
(4) The Governor in Council may make regulations prescribing the types of compliance units described in regulations made under section 326 that a person may be required to remit or cancel in an order made under subsection (3) and the manner of determining the number of those compliance units that the person may be required to remit or cancel.
(2) Subsection 272.2(5) of the English version of the Act is replaced by the following:
Marginal note:Absence of regulations
(5) If there are no regulations made under subsection (4), the court shall require the person to remit or cancel compliance units of a type and in the number that, in the court’s opinion, the person failed to remit or cancel.
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