Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law

2 (1) A practice that warrants a premium surcharge is any act or omission of a member institution that results in the member institution

• (a) failing to comply with subsection 8(2) of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that requires the member institution to have the practices and controls referred to in that subsection;

• (b) failing to comply with one or more provisions of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that require the member institution to provide the Corporation with the information specified in that policy;

• (c) failing to comply with section 24 of the policy of deposit insurance, as prescribed by section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law and as set out in the schedule to that By-law, that requires the member institution to prepare and maintain the records specified in that section and to retain those records for the period of time specified in that section;

• (d) failing to comply with one or more provisions of a relevant statute described in subsection (2) that relate to the objects of the Corporation set out in section 7 of the Canada Deposit Insurance Corporation Act and that impose a duty on the member institution in respect of any of the following matters, namely,

  • (i) corporate governance,

  • (ii) preparation and filing of financial statements,

  • (iii) business and powers,

  • (iv) investments,

  • (v) capital and liquidity, and

  • (vi) self-dealing;

• (e) failing to fulfil the terms of any undertaking given by the member institution to the Corporation;

• (f) failing to comply with one or more provisions of the Canada Deposit Insurance Corporation Data and System Requirements By-law; or

• (g) failing to comply with one or more provisions of the Canada Deposit Insurance Corporation Eligible Financial Contracts By-law.

(2) For the purposes of paragraph (1)(d), relevant statute means

• (a) in the case of a federal member institution that is a bank, the Bank Act;

• (b) in the case of a federal member institution that is a trust or loan company, the Trust and Loan Companies Act;

• (b.1) in the case of a federal member institution that is an association, the Cooperative Credit Associations Act; and

• (c) in the case of a provincial member institution, the provincial Act that authorizes the member institution to accept deposits within the meaning of the Canada Deposit Insurance Corporation Act.