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Financial System Review Act (S.C. 2012, c. 5)

Assented to 2012-03-29

Marginal note:2001, c. 9, s. 183; 2007, c. 6, par. 132(z.17)

98. Paragraph 906(2)(a) of the Act is replaced by the following:

  • (a) more than 10 per cent but no more than 20 per cent of any class of the outstanding voting shares of a widely held bank holding company with equity of twelve billion dollars or more; or

Marginal note:2001, c. 9, s. 183

99. Subsection 913(2) of the Act is replaced by the following:

  • Marginal note:Exception

    (2) Despite subsection (1), a bank holding company may record in its securities register a transfer or issue of any share of the bank holding company to a foreign bank, or to a foreign institution, that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share that is transferred or issued is beneficially owned by the foreign bank or foreign institution or by an entity controlled by the foreign bank or foreign institution.

Marginal note:2001, c. 9, s. 183

100. Subsection 914(2) of the Act is replaced by the following:

  • Marginal note:Exception

    (2) Subsection (1) does not apply to a foreign bank, or to a foreign institution, that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share referred to in subsection (1) is beneficially owned by the foreign bank or foreign institution or by an entity controlled by the foreign bank or foreign institution.

Marginal note:2007, c. 6, s. 122(3)

  • 101. (1) Subsection 930(3.1) of the Act is replaced by the following:

    • Marginal note:Exception

      (3.1) Despite paragraph (3)(a), a bank holding company may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee for a trust if the entity has been permitted under the laws of a province to act as a trustee for a trust and the following conditions are satisfied:

      • (a) the entity acts as a trustee only with respect to a closed-end fund or mutual fund entity; and

      • (b) if the entity engages in other business, that business is limited to engaging in one or more of the following:

        • (i) the activities of a mutual fund distribution entity,

        • (ii) any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and

        • (iii) the provision of investment counselling services and portfolio management services.

  • (2) Subsection 930(5) of the Act is amended by adding the following after paragraph (b):

    • (b.1) acquire control of an entity referred to in paragraph (1)(j) if the bank holding company is a bank holding company with equity of two billion dollars or more and

      A + B > C

      where

      A 
      is the value of the entity’s consolidated assets, as it would have been reported in the entity’s annual financial statements if those statements had been prepared immediately before the acquisition,
      B 
      is the aggregate of the values of the consolidated assets of all other entities referred to in paragraph (1)(j) that the bank holding company has acquired control of within the preceding 12 months, as the value for each entity would have been reported in its annual financial statements if those statements had been prepared immediately before the acquisition of control of that entity, and
      C 
      is 10% of the value of the bank holding company’s consolidated assets, as shown in the bank holding company’s last annual statement that was prepared before its first acquisition of control of an entity referred to in paragraph (1)(j) within the preceding 12 months;

  • (3) Section 930 of the Act is amended by adding the following after subsection (5):

    • Marginal note:Matters for consideration

      (5.1) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval under paragraph (5)(b.1), take into account all matters that he or she considers relevant in the circumstances, including

      • (a) the stability of the financial system in Canada; and

      • (b) the best interests of the financial system in Canada.