Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)
Full Document:
- HTMLFull Document: Budget Implementation Act, 2023, No. 1 (Accessibility Buttons available) |
- PDFFull Document: Budget Implementation Act, 2023, No. 1 [3565 KB]
Assented to 2023-06-22
PART 4Various Measures (continued)
DIVISION 33Legislation Related to Financial Institutions (continued)
1991, c. 46Bank Act (continued)
573 Subsection 961(1) of the French version of the Act is replaced by the following:
Marginal note:Exécution judiciaire
961 (1) En cas de manquement soit à un accord prudentiel conclu en vertu de l’article 959, soit à une décision prise en vertu de l’article 960, soit à une disposition de la présente loi — notamment une obligation — , le surintendant peut, en plus de toute autre mesure qu’il est déjà habilité à prendre sous le régime de celle-ci, demander à un tribunal de rendre une ordonnance obligeant la société de portefeuille bancaire en faute à mettre fin ou à remédier au manquement, ou toute autre ordonnance qu’il juge indiquée en l’espèce.
574 Subsection 973.02(1) of the Act is replaced by the following:
Marginal note:Minister — terms, conditions and undertakings
973.02 (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.
575 Subsection 973.03(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.
576 The Act is amended by adding the following after section 973.03:
Marginal note:Confidential undertaking
973.031 (1) If, in the Minister’s opinion, the disclosure of information about an undertaking required under subsection 973.02(1) or 973.03(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.
577 Subsection 977(1) of the Act is replaced by the following:
Marginal note:Appeal to Federal Court
977 (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 401.2(7), 402(1), 402.2(1), 913(7) or 915(1).
1991, c. 47Insurance Companies Act
578 The Insurance Companies Act is amended by adding the following after section 15:
Marginal note:Policies and procedures — integrity or security
15.1 A company or society shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference.
579 Paragraphs 168(1)(e) and (f) of the Act are replaced by the following:
(e) a person who is prohibited by subsection 164.08(8) or section 418 or 430 from exercising voting rights attached to shares of the company or whose voting rights attached to the shares are suspended under section 432.1 or subsection 1016.3(4);
(f) a person who is an officer, director or full time employee of an entity that is prohibited by subsection 164.08(8) or section 418 or 430 from exercising voting rights attached to shares of the company or whose voting rights attached to the shares are suspended under section 432.1 or subsection 1016.3(4);
580 The Act is amended by adding the following after section 432:
Marginal note:Disposition — threat to integrity or security
432.1 (1) If the Minister is of the opinion that a person’s holding or beneficial ownership of shares of a company poses a threat to the integrity or security of the company or the financial system in Canada or a threat to national security, the Minister may, by order, direct that person and any person controlled by that person to dispose of any number of shares of the company held or beneficially owned by any of the persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by the person that is specified in the order.
Marginal note:Suspension of rights
(2) A direction made under subsection (1) may also suspend any of the rights under Part VI attached to the shares referred to in that subsection until the shares are disposed of in accordance with the direction.
Marginal note:Representations
(3) No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations.
Marginal note:Temporary direction
(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 make a temporary direction to suspend any of the rights under Part VI attached to any of the shares referred to in subsection (1).
Marginal note:Cessation of effect
(5) A temporary direction 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 in the temporary direction, and
(b) if a direction is made under subsection (1) in respect of the shares, the day on which that direction takes effect.
Marginal note:Appeal
(6) Any person with respect to whom a direction has been made under subsection (1) may, within 30 days after the day on which the direction was made, appeal the matter in accordance with section 1020.
Marginal note:Notice — Committee and Review Agency
(7) If a direction has been made under subsection (1) or (4) for reasons related to national security, the Minister shall, within 30 days after the day on which the direction was made, 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.
581 Subsection 433(1) of the Act is replaced by the following:
Marginal note:Application to court
433 (1) If a person fails to comply with a direction made under subsection 428(7), 432(1) or 432.1(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
582 The Act is amended by adding the following after section 574:
Marginal note:Policies and procedures — integrity or security
574.1 A foreign company shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada.
583 The Act is amended by adding the following after section 657:
Marginal note:Policies and procedures — integrity or security
657.1 A provincial company shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference.
584 Subsection 671(1) of the Act is replaced by the following:
Marginal note:Production of information and documents
671 (1) The Superintendent may, by order, direct a person who controls a company or any entity that is affiliated with a company to provide the Superintendent with any information or documents that may be specified in the order if the Superintendent believes that the production of the information or documents is necessary in order to be satisfied that
(a) the provisions of this Act are being duly observed and that the company is in a sound financial condition; or
(b) the company has adequate policies and procedures to protect itself against threats to its integrity or security.
585 (1) Subsection 674(1) of the Act is replaced by the following:
Marginal note:Examination of companies, etc.
674 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each company, society, foreign company and provincial company that the Superintendent considers to be necessary or expedient to determine whether the company, society, foreign company or provincial company is complying with the provisions of this Act, whether the company, society or provincial company or the insurance business in Canada of the foreign company is in a sound financial condition and whether the company, society or provincial company has adequate policies and procedures to protect itself against threats to its integrity or security or the foreign company has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.
(2) Section 674 of the Act is amended by adding the following after subsection (1):
Marginal note:Integrity or security
(1.1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any company, society, foreign company and provincial company that the Superintendent considers to be necessary or expedient to determine whether the company, society or provincial company has adequate policies and procedures to protect itself against threats to its integrity or security or the foreign company has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.
(3) Subsection 674(1.1) of the Act is repealed.
586 Section 675.1 of the Act is replaced by the following:
Marginal note:Prudential agreement
675.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with
(a) a company, society or provincial company for the purposes of implementing any measure designed to maintain or improve its safety and soundness or establishing adequate policies and procedures to protect it against threats to its integrity or security; or
(b) a foreign company for the purposes of implementing any measure designed to protect the interests of its policyholders and creditors in relation to its insurance business in Canada or establishing adequate policies and procedures to protect it against threats to its integrity or security in relation to its business in Canada.
587 Subsections 676(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, a company, society, or provincial company does not have adequate policies and procedures to protect itself against threats to its integrity or security, or a foreign company does not have adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada, the Superintendent may direct the company, society, foreign company or provincial 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 to a company, society, foreign company, provincial company or person under subsection (1) or (1.1) unless the company, society, foreign company, provincial company or person 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 under subsection (2) 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) and (b) or subsection (1.1) having effect for a period of not more than 15 days.
Page Details
- Date modified: