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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART XII.1Authorized Foreign Banks (continued)

Miscellaneous (continued)

Marginal note:Regulations — activities

 The Governor in Council may make regulations respecting any matters involving an authorized foreign bank’s dealings, or its employees’, representatives’, agents’ or other intermediaries’ dealings, with customers or the public, including

  • (a) what an authorized foreign bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 538 and any ancillary, related or incidental activities or services; and

  • (b) the time and place at which and the form and manner in which any of those activities are to be carried out or any of those services are to be provided.

  • 2009, c. 2, s. 274
  • 2012, c. 5, s. 70

Marginal note:Regulations re customer information

 The Governor in Council may make regulations

  • (a) requiring an authorized foreign bank to establish procedures regarding the collection, retention, use and disclosure of information about its customers or any class of its customers;

  • (b) requiring an authorized foreign bank to establish procedures for dealing with complaints made by a customer about the collection, retention, use or disclosure of information about the customer;

  • (c) respecting the disclosure by an authorized foreign bank of information relating to the procedures referred to in paragraphs (a) and (b);

  • (d) requiring an authorized foreign bank to designate officers and employees in Canada of the authorized foreign bank who are responsible for

    • (i) implementing the procedures referred to in paragraph (b), and

    • (ii) receiving and dealing with complaints made by a customer of the authorized foreign bank about the collection, retention, use or disclosure of information about the customer;

  • (e) requiring an authorized foreign bank to report information relating to

    • (i) complaints made by its customers about the collection, retention, use or disclosure of information, and

    • (ii) the actions taken by the authorized foreign bank to deal with the complaints; and

  • (f) defining information, collection and retention for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs.

  • 1991, c. 46, s. 576
  • 1999, c. 28, s. 35

Marginal note:Restriction on tied selling

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

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

    (2) For greater certainty, an authorized foreign bank may offer a product or service to a person on more favourable terms or conditions than the authorized foreign 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 authorized foreign bank product or service

    (3) For greater certainty, an affiliate of an authorized foreign 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 authorized foreign bank.

  • Marginal note:Approval

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

  • Marginal note:Disclosure

    (4.1) An authorized foreign 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).

  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 158
  • 2007, c. 6, s. 92
  • 2012, c. 5, s. 71

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 authorized foreign banks or any prescribed class of authorized foreign 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 authorized foreign banks or any prescribed class of authorized foreign banks relating to any matter referred to in paragraph (a).

  • 2001, c. 9, s. 159
  • 2007, c. 6, s. 93
  • 2012, c. 5, s. 72

Marginal note:Affiliates

 An authorized foreign 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 an authorized foreign bank 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 authorized foreign bank or the affiliate in Canada unless

  • (a) the affiliate or the representative, agent or other intermediary of the authorized foreign bank or the affiliate, as the case may be, complies, with respect to the product or service, with the consumer provisions that apply to authorized foreign banks — other than section 573.1 — as if they were an authorized foreign 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 authorized foreign bank’s procedures for dealing with complaints established under this Act.

  • 2012, c. 5, s. 73

Marginal note:Transmission in case of death

  •  (1) Where the transmission of a debt owing by an authorized foreign bank by reason of a deposit, of property held by an authorized foreign bank as security or for safe-keeping or of rights with respect to a safety deposit box and property deposited in it takes place because of the death of a person, the delivery to the authorized foreign bank of the following is sufficient justification and authority for giving effect to the transmission in accordance with the claim:

    • (a) an affidavit or declaration in writing in form satisfactory to the authorized foreign bank signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission; and

    • (b) one of the following, namely,

      • (i) if the claim is based on a will or other testamentary instrument or on a grant of probate of a will or testamentary instrument or on such a grant and letters testamentary or other document of like import or on a grant of letters of administration or other document of like import, purporting to be issued by any court or authority in Canada or elsewhere, an authenticated copy or certificate of the document under the seal of the court or authority without proof of the authenticity of the seal or other proof, or

      • (ii) if the claim is based on a notarial will, an authenticated copy of the notarial will.

  • Marginal note:Evidence of transmission

    (2) Nothing in subsection (1) shall be construed to prevent an authorized foreign bank from refusing to give effect to a transmission until there has been delivered to the authorized foreign bank any documentary or other evidence of or in connection with the transmission that it may consider necessary.

  • 1991, c. 46, s. 577
  • 1999, c. 28, s. 35
 
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