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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2020-02-11 and last amended on 2019-06-21. Previous Versions

PART VIIIBusiness and Powers (continued)

Miscellaneous (continued)

Marginal note:Restriction on tied selling

  •  (1) A bank shall not impose undue pressure on, or coerce, a person to obtain a product or service from a particular person, including the bank and any of its affiliates, as a condition for obtaining another product or service from the bank.

  • Marginal note:Favourable bank product or service tied to other sale

    (2) For greater certainty, a bank may offer a product or service to a person on more favourable terms or conditions than the bank would otherwise offer, where 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:Favourable other sale tied to bank product or service

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

  • Marginal note:Bank approval

    (4) A bank may require that a product or service obtained by a borrower from a particular person as security for a loan from the bank meet with the bank’s approval. That approval shall not be unreasonably withheld.

  • Marginal note:Disclosure

    (4.1) A bank shall, in accordance with the regulations, disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches where products or services are offered in Canada, on all of its websites through which products or services are offered in Canada and at all prescribed points of service in Canada.

  • Marginal note:Regulations

    (4.2) The Governor in Council may make regulations for the purposes of subsection (4.1)

    • (a) respecting the time and place at which, and the form and manner in which, the prohibition on coercive tied selling set out in subsection (1) is to be disclosed, displayed and made available;

    • (b) defining point of service; and

    • (c) prescribing points of service.

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations

    • (a) specifying types of conduct or transactions that shall be considered undue pressure or coercion for the purpose of subsection (1); and

    • (b) specifying types of conduct or transactions that shall be considered not to be undue pressure or coercion for the purpose of subsection (1).

  • 1997, c. 15, s. 55
  • 1999, c. 28, s. 24.1(F)
  • 2001, c. 9, s. 124
  • 2007, c. 6, s. 35
  • 2012, c. 5, s. 48

Marginal note:Notice of branch closure

  •  (1) Subject to regulations made under subsection (5), a member bank with a branch in Canada at which it, through a natural person, opens retail deposit accounts and disburses cash to customers, shall give notice in accordance with those regulations before closing that branch or having it cease to carry on either of those activities.

  • Marginal note:Pre-closure meeting

    (2) After notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner shall, in prescribed situations, require the bank to convene and hold a meeting between representatives of the bank, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities, including, but not limited to, alternative service delivery by the bank and measures to help the branch’s customers adjust to the closing or cessation of activities.

  • Marginal note:Meeting details

    (3) The Commissioner may establish rules for convening a meeting referred to in subsection (2) and for its conduct.

  • Marginal note:Not statutory instruments

    (4) The Statutory Instruments Act does not apply in respect of rules established under subsection (3).

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations prescribing

    • (a) the time and place at which and the form and manner in which notice shall be given under subsection (1), the persons to whom it shall be given and the information to be included, with those times, places, forms and manners being permitted to vary according to circumstances specified in the regulations;

    • (b) circumstances in which a member bank is not required to give notice under subsection (1), circumstances in which the Commissioner may exempt a member bank from the requirement to give notice under that subsection, and circumstances in which the Commissioner may vary the time and place at which and the form and manner in which notice is required to be given under any regulation made under paragraph (a); and

    • (c) circumstances in which a meeting may be convened under subsection (2).

  • 2001, c. 9, s. 125
  • 2007, c. 6, s. 36
  • 2012, c. 5, s. 49

Marginal note:Public accountability statements

  •  (1) A bank with equity of one billion dollars or more shall, in accordance with regulations made under subsection (4), annually publish a statement describing the contribution of the bank and its prescribed affiliates to the Canadian economy and society.

  • Marginal note:Filing

    (2) A bank shall, at the prescribed time and place and in the prescribed form and manner, file a copy of the statement with the Commissioner.

  • Marginal note:Provision of statement to public

    (3) A bank shall, at the prescribed time and place and in the prescribed form and manner, disclose the statement to its customers and to the public.

  • Marginal note:Regulations

    (4) The Governor in Council may make regulations prescribing

    • (a) the name, contents and form of the statement referred to in subsection (1) and the time within which, the place at which and the manner in which it must be prepared;

    • (b) affiliates of a bank referred to in subsection (1);

    • (c) the time and place at which and the form and manner in which a statement must be filed under subsection (2); and

    • (d) the time and place at which and the form and manner in which a statement mentioned in subsection (3) is to be disclosed, respectively, to a bank’s customers and to the public.

  • 2001, c. 9, s. 125
  • 2012, c. 5, s. 50

Marginal note:Regulations re disclosure

 The Governor in Council may, subject to any other provisions of this Act relating to the disclosure of information, make regulations respecting the disclosure of information by banks or any prescribed class of banks, including regulations respecting

  • (a) the information that must be disclosed, including information relating to

    • (i) any product or service or prescribed class of products or services offered by them,

    • (ii) any of their policies, procedures or practices relating to the offer by them of any product or service or prescribed class of products or services,

    • (iii) anything they are required to do or to refrain from doing under a consumer provision, and

    • (iv) any other matter that may affect their dealings, or their employees’, representatives’, agents’ or other intermediaries’ dealings, with customers or the public;

  • (b) the time and place at which, the form and manner in which and the persons to whom information is to be disclosed; and

  • (c) the content and form of any advertisement by banks or any prescribed class of banks relating to any matter referred to in paragraph (a).

  • 2001, c. 9, s. 125
  • 2007, c. 6, s. 37
  • 2012, c. 5, s. 51

Marginal note:Affiliates

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

  • (a) the affiliate or the representative, agent or other intermediary of the bank or the affiliate, as the case may be, complies, with respect to the product or service, with the consumer provisions that apply to banks — other than section 455.1 — as if they were a bank, to the extent that those provisions are applicable to their activities; and

  • (b) the persons who request or receive the product or service have access to the bank’s procedures for dealing with complaints established under this Act.

  • 2001, c. 9, s. 125
  • 2012, c. 5, s. 52
 
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