Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)

Marginal note:1999, c. 28, ss. 35(1) and (2)

• 133. (1) Subsection 524(3) of the Act is replaced by the following:

  • Marginal note:Reciprocal treatment

    (3) The Minister may make an order only if the Minister is satisfied that, if the application is made by a non-WTO Member foreign bank, treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the authorized foreign bank principally carries on business, either directly or through a subsidiary.

• Marginal note:1999, c. 28, s. 35(1)

  (2) Paragraph 524(4)(b) of the Act is replaced by the following:

  • (b) the applicant’s principal activity is the provision of

    • (i) financial services, or

    • (ii) services that would be permitted by this Act if they were provided by a bank in Canada.

134. The Act is amended by adding the following after section 524:

Marginal note:1999, c. 28, s. 35(1)

135. Section 526 of the Act is replaced by the following:

Marginal note:1999, c. 28, s. 35(1)

• 136. (1) Paragraphs 529(1)(e) and (f) of the Act are replaced by the following:

  • (f) in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), carry on business in Canada without having to deposit assets having a value of at least five million dollars, as required by subparagraphs 534(3)(a)(ii) and 582(1)(b)(i), where the authorized foreign bank continues to hold a substantial investment in

    • (i) a bank that is a subsidiary of the foreign bank and the Minister has approved an application for voluntary liquidation and dissolution made by the subsidiary under section 344, or

    • (ii) a company to which the Trust and Loan Companies Act applies and the Minister has approved an application for voluntary liquidation and dissolution made by the company under section 349 of that Act; or

• Marginal note:1999, c. 28, s. 35(1)

  (2) Paragraph 529(5)(c) of the Act is replaced by the following:

  • (c) with respect to matters described in paragraph (1)(f), that purports to be effective more than seven years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank.

Marginal note:1999, c. 28, s. 35(1)

137. Paragraph 530(1)(e) of the Act is replaced by the following:

Marginal note:1999, c. 28, s. 35(1)

138. Subparagraph 534(3)(a)(ii) of the Act is replaced by the following:

Marginal note:1999, c. 28, s. 35(1)

• 139. (1) The portion of subsection 539(1) of the English version of the Act before paragraph (a) is replaced by the following:

  Marginal note:Additional activities

  • 539. (1) In addition, an authorized foreign bank may, in Canada,

• Marginal note:1999, c. 28, s. 35(1)

  (2) Paragraph 539(1)(b) of the Act is replaced by the following;

  • (b) provide prescribed bank-related data processing services;

  • (b.1) with the prior written approval of the Minister, engage in any of the following activities, namely,

    • (i) collecting, manipulating and transmitting

      • (A) information that is primarily financial or economic in nature,

      • (B) information that relates to the business of an entity in which a bank is permitted to acquire a substantial investment under section 468 or to the business of a Canadian entity acquired or held under section 522.08, and

      • (C) any other information that the Minister may, by order, specify,

    • (ii) providing advisory or other services in the design, development or implementation of information management systems,

    • (iii) designing, developing or marketing computer software, and

    • (iv) designing, developing, manufacturing or selling, as an ancillary activity to any activity referred to in any of subparagraphs (i) to (iii) that the authorized foreign bank is engaging in, computer equipment integral to the provision of information services related to the business of financial institutions or to the provision of financial services;

  • (b.2) with the prior written approval of the Minister, develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used

    • (i) to provide information that is primarily financial or economic in nature,

    • (ii) to provide information that relates to the business of an entity in which a bank is permitted to acquire a substantial investment under section 468 or to the business of a Canadian entity acquired or held under section 522.08, or

    • (iii) for a prescribed purpose or in prescribed circumstances;

  • (b.3) engage in prescribed specialized business management or advisory services;

• Marginal note:1999, c. 28, s. 35(1)

  (3) Paragraphs 539(3)(a) and (b) of the Act are replaced by the following:

  • (a) respecting what an authorized foreign bank may or may not do with respect to the carrying on of the activities referred to in paragraphs (1)(b.1) to (b.3);

  • (b) imposing terms and conditions in respect of

    • (i) the provision of financial services referred to in paragraph 538(2)(a) that are financial planning services,

    • (ii) the provision of services referred to in paragraph 538(2)(c), and

    • (iii) the carrying on of the activities referred to in any of paragraphs (1)(b.1) to (b.3); and

  • (c) respecting the circumstances in which authorized foreign banks may be exempted from the requirement to obtain the approval of the Minister before carrying on a particular activity referred to in paragraph (1)(b.1) or (b.2).

140. The Act is amended by adding the following after section 539:

Marginal note:1999, c. 28, s. 35(1)

• 141. (1) Paragraphs 540(1)(b) and (c) of the Act are replaced by the following:

  • (b) subject to the regulations, act as an agent for any person in the taking of deposit liabilities; or

  • (c) guarantee any securities or accept any bills of exchange or depository bills that are

    • (i) issued by any person, and

    • (ii) intended by the issuer or any party to be sold or traded.

• Marginal note:1999, c. 28, s. 35(1)

  (2) Subparagraph 540(4)(a)(ii) of the Act is replaced by the following:

  • (ii) a foreign bank that is or is deemed to be the subject of a designation order under section 508,

• (3) Subsection 540(6) of the Act is amended by striking out the word “and” at the end of paragraph (d) and by adding the following after that paragraph:

  • (d.1) respecting circumstances in which and the conditions under which an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) may act as agent for any person in the taking of deposit liabilities; and