Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)
Full Document:
Assented to 2001-06-14
Marginal note:1996, c. 6, s. 122(1)
557. Subsection 503(1) of the Act is replaced by the following:
Marginal note:Confidential information
503. (1) Subject to sections 504 and 504.1, all information regarding the business or affairs of a company, or regarding a person dealing with a company, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly.
Marginal note:1996, c. 6, s. 124
558. Section 504.4 of the Act is replaced by the following:
Marginal note:Report respecting disclosure
504.4 The Superintendent shall prepare a report, to be included in the report referred to in section 40 of the Office of the Superintendent of Financial Institutions Act, respecting the disclosure of information by companies and describing the state of progress made in enhancing the disclosure of information in the financial services industry.
559. Subsection 505(1) of the Act is replaced by the following:
Marginal note:Examination of companies
505. (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each company that the Superintendent considers to be necessary or expedient to determine whether the company is complying with the provisions of this Act and whether the company is in a sound financial condition and, after the conclusion of each examination and inquiry, shall report on it to the Minister.
560. The Act is amended by adding the following after the heading “Remedial Powers” after section 506:
Prudential Agreements
Marginal note:Prudential agreement
506.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with a company for the purposes of implementing any measure designed to maintain or improve its safety and soundness.
561. Subsection 509(1) of the Act is replaced by the following:
Marginal note:Court enforcement
509. (1) Where a company or person
(a) is contravening or has failed to comply with a prudential agreement entered into under section 506.1 or a direction of the Superintendent issued to the company or person pursuant to subsection 507(1) or (3),
(b) is contravening this Act, or
(c) has omitted to do any thing under this Act that is required to be done by or on the part of the company or person,
the Superintendent may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the company or person to comply with the prudential agreement or direction, cease the contravention or do any thing that is required to be done, and on such application the court may so order and make any other order it thinks fit.
Marginal note:1996, c. 6, s. 126
562. The heading before section 509.1 of the Act is replaced by the following:
Disqualification and Removal of Directors or Senior Officers
Meaning of “senior officer”
509.01 In sections 509.1 and 509.2, “senior officer” means the chief executive officer, secretary, treasurer or controller of a company or any other officer reporting directly to the company’s board of directors or chief executive officer.
Marginal note:1996, c. 6, s. 126
563. (1) Paragraphs 509.1(1)(a) and (b) of the Act are replaced by the following:
(a) that has been notified by the Superintendent that this section applies to it where the company is subject to measures designed to maintain or improve its safety and soundness, which measures
(i) have been specified by the Superintendent by way of conditions or limitations in respect of the order approving the commencement and carrying on of the company’s business, or
(ii) are contained in a prudential agreement entered into under section 506.1 or an undertaking given by the company to the Superintendent; or
(b) that is the subject of a direction made under section 507 or an order made under subsection 473(3).
Marginal note:1996, c. 6, s. 126
(2) Paragraph 509.1(2)(b) of the Act is replaced by the following:
(b) each person who has been selected by the company for appointment as a senior officer, and
Marginal note:1996, c. 6, s. 126
(3) The portion of subsection 509.1(2) of the French version of the Act after paragraph (c) is replaced by the following:
Elle lui communique également les renseignements personnels qui les concernent et les renseignements sur leur expérience et leur dossier professionnel qu’il peut exiger.
Marginal note:1996, c. 6, s. 126
(4) Subsections 509.1(4) and (5) of the Act are replaced by the following:
Marginal note:Disqualification or removal
(4) If the Superintendent is of the opinion that, on the basis of the competence, business record, experience, conduct or character of a person, he or she is not suitable to hold that position, the Superintendent may, by order
(a) in the case of a person referred to in paragraph (2)(a) or (b), disqualify the person from being elected or appointed as a director of a company or from being appointed as a senior officer; or
(b) in the case of a person referred to in paragraph (2)(c), remove the person from office as a director of the company.
Marginal note:Risk of prejudice
(4.1) In forming an opinion under subsection (4), the Superintendent must consider whether the interests of the depositors and creditors of the company would likely be prejudiced if the person were to take office or continue to hold office, as the case may be.
Marginal note:Representations may be made
(5) The Superintendent must in writing notify the person concerned and the company of any action that the Superintendent proposes to take under subsection (4) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
Marginal note:1996, c. 6, s. 126
(5) Subsection 509.1(6) of the English version of the Act is replaced by the following:
Marginal note:Prohibition
(6) Where an order has been made under subsection (4)
(a) disqualifying a person from being elected or appointed to a position, the person shall not be, and the company shall not permit the person to be, elected or appointed to the position; or
(b) removing a director from office, the person shall not continue to hold, and the company shall not permit the person to continue to hold, office as a director.
564. The Act is amended by adding the following after section 509.1:
Marginal note:Removal of directors or senior officers
509.2 (1) The Superintendent may, by order, remove a person from office as a director or senior officer of a company if the Superintendent is of the opinion that the person is not suitable to hold that office
(a) on the basis of the competence, business record, experience, conduct or character of the person; or
(b) because the person has contravened or, by action or negligence, has contributed to the contravention of
(i) this Act or the regulations made under it,
(ii) a direction made under section 507,
(iii) an order made under subsection 473(3),
(iv) a condition or limitation in respect of the order approving the commencement and carrying on the company’s business, or
(v) a prudential agreement entered into under section 506.1 or an undertaking given by the company to the Superintendent.
Marginal note:Risk of prejudice
(2) In forming an opinion under subsection (1), the Superintendent must consider whether the interests of the depositors and creditors of the company have been or are likely to be prejudiced by the person’s holding office as a director or senior officer.
Marginal note:Representations may be made
(3) The Superintendent must in writing notify the person concerned and the company of any removal order that the Superintendent proposes to make under subsection (1) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
Marginal note:Suspension
(4) If the Superintendent is of the opinion that the public interest may be prejudiced by the director or senior officer continuing to exercise the powers or carry out the duties and functions of that office during the period for making representations, the Superintendent may make an order suspending the director or senior officer. The suspension may not extend beyond 10 days after the expiration of that period.
Marginal note:Notice of order
(5) The Superintendent shall, without delay, notify the director or senior officer, as the case may be, and the company of a removal order or suspension order.
Marginal note:Consequences of removal order
(6) The director or senior officer, as the case may be, ceases to hold that office as of the date the removal order is made or any later date specified in the order.
Marginal note:Appeal
(7) The director or senior officer, as the case may be, or the company may, within 30 days after the date of receipt of notice of the removal order under subsection (5), or within any longer period that the Court allows, appeal the matter to the Federal Court.
Marginal note:Powers of Federal Court
(8) The Federal Court, in the case of an appeal, may dismiss the appeal or set aside the removal order.
Marginal note:Order not stayed by appeal
(9) A removal order is not stayed by an appeal.
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