Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7)

1991, c. 46Bank Act

156 Section 2 of the Bank Act is amended by adding the following in alphabetical order:

Marginal note:2014, c. 20, s. 210

• 157 (1) Subsection 415.2(1) of the Act is replaced by the following:

  Marginal note:Derivatives and eligible financial contracts — regulations

  • 415.2 (1) The Governor in Council may make regulations respecting a bank’s activities in relation to derivatives and eligible financial contracts.

• (2) Section 415.2 of the Act is amended by adding the following after subsection (2):

  • Definition of eligible financial contract

    (3) In this section, eligible financial contract has the same meaning as in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act.

158 The heading of Part X of the Act is replaced by the following:

159 The Act is amended by adding the following before section 485:

Marginal note:1996, c. 6, s. 7

• 160 (1) Subsection 485(2) of the Act is replaced by the following:

  • Marginal note:Domestic systemically important banks

    (1.1) If the bank is a domestic systemically important bank, it shall also maintain the minimum capacity to absorb losses that is provided for under subsection (1.2) and shall comply with any regulations in relation to that requirement.

  • Marginal note:Superintendent’s order

    (1.2) For each domestic systemically important bank, the Superintendent shall, by order made after consulting with the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act, provide for the amount — consisting of capital and prescribed shares and liabilities — that constitutes the bank’s minimum capacity to absorb losses.

  • Marginal note:Public interest

    (1.3) Despite subsection (1.2), if, before the order is made, the Minister advises the Superintendent that the Minister is of the opinion that the amount provided for by the Superintendent is not in the public interest, the Superintendent shall provide for another amount in accordance with that subsection.

  • Marginal note:Notice and publication

    (1.4) If an order is made under subsection (1.2), the Superintendent shall, in writing and without delay, inform the bank that is subject to the order and shall, as soon as feasible, cause the order to be published in the Canada Gazette and on the website of the Office of the Superintendent of Financial Institutions.

  • Marginal note:Regulations and guidelines

    (2) The Governor in Council may make regulations and the Superintendent may make guidelines respecting the maintenance by banks of adequate capital and adequate and appropriate forms of liquidity and the maintenance by domestic systemically important banks of the minimum capacity to absorb losses.

• (2) Subsection 485(4) of the Act is replaced by the following:

  • Marginal note:Orders to limit or prohibit

    (3.1) If the Superintendent becomes aware that a domestic systemically important bank is not maintaining its minimum capacity to absorb losses, the Superintendent shall notify the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act and may, by order, take any measures that he or she considers appropriate, including

    • (a) limiting the growth of the bank’s total assets;

    • (b) limiting or prohibiting acquisitions of assets by the bank;

    • (c) limiting or prohibiting discretionary payments in respect of the bank’s shares or subordinated indebtedness;

    • (d) limiting or prohibiting purchases by the bank, or redemptions, of the bank’s shares, subordinated indebtedness or prescribed liabilities;

    • (e) limiting or prohibiting reductions of the bank’s stated capital; and

    • (f) limiting or prohibiting the opening of new branches by the bank.

  • Marginal note:Consultation

    (3.2) Before making an order under subsection (3.1) or varying or revoking such an order, the Superintendent shall consult with the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act.

  • Marginal note:Compliance

    (4) A bank shall comply with an order made under subsection (3) or (3.1) within the time that is specified in the order.

161 The Act is amended by adding the following after section 485:

162 The Act is amended by adding the following after section 485.01:

Consequential Amendments

R.S., c. F-11Financial Administration Act

Marginal note:1992, c. 26, s. 18; 2009, c. 2, s. 257(2)

163 Subsections 85(3) and (4) of the Financial Administration Act are repealed.

R.S., c. W-11; 1996, c. 6, s. 134Winding-up and Restructuring Act

Marginal note:2007, c. 6, s. 444; 2010, c. 12, s. 2127

• 164 (1) The portion of paragraph 3(i) of the Winding-up and Restructuring Act before subparagraph (ii) is replaced by the following:

  • (i) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which an order has been made under paragraph 39.13(1)(a) of that Act but in respect of which no order has been made under subsection 39.13(1.3) of that Act, a notice has not been published under subsection 39.2(3) of that Act in respect of the institution on or before

    • (i) the 60th day after the day on which the order was made under paragraph 39.13(1)(a) of that Act, or

• Marginal note:2007, c. 6, s. 444

  (2) Subparagraph 3(i)(ii) of the English version of the Act is replaced by the following:

  • (ii) the day on which any extension of that period ends;

• Marginal note:2007, c. 6, s. 444

  (3) The portion of paragraph 3(j) of the Act before subparagraph (ii) is replaced by the following:

  • (j) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which an order has been made under paragraph 39.13(1)(b) of that Act but in respect of which no order has been made under subsection 39.13(1.3) of that Act, a notice has not been published under subsection 39.2(3) of that Act in respect of the institution on or before

    • (i) the 60th day after the day on which the order was made under paragraph 39.13(1)(b) of that Act, or

• Marginal note:2007, c. 6, s. 444

  (4) Subparagraph 3(j)(ii) of the English version of the Act is replaced by the following:

  • (ii) the day on which any extension of that period ends;

• (5) Section 3 of the Act is amended by adding the following after paragraph (j):

  • (j.1) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which an order has been made under paragraph 39.13(1)(d) or subsection 39.13(1.3) of that Act, a notice has not been published under subsection 39.2(3) of that Act in respect of the institution on or before

    • (i) the day that is one year after the day on which the order is made under subsection 39.13(1) of that Act or any shorter period that is specified in the order made under paragraph 39.13(1)(d) or subsection 39.13(1.3) of that Act, as the case may be, or

    • (ii) the day on which any extension of the applicable period ends; or